Open AccessA model for scheduling projects under the condition of inflation and under penalty and reward arrangements
Author(s) -
Joel K. Jolayemi
Publication year - 2014
Publication title -
orion/orion
Language(s) - English
Resource type - Journals
eISSN - 2224-0004
pISSN - 0259-191X
DOI - 10.5784/17-0-191
Subject(s) - inflation (cosmology) , scheduling (production processes) , mathematical optimization , economics , integer programming , linear programming , computer science , zero (linguistics) , econometrics , operations research , mathematical economics , mathematics , theoretical physics , linguistics , philosophy , physics
A zero-one mixed integer linear programming model is developed for the scheduling of projects under the condition of inflation and under penalty and reward arrangements. The effects of inflation on time-cost trade-off curves are illustrated and a modified approach to time-cost trade-off analysis presented. Numerical examples are given to illustrate the model and its properties. The examples show that misleading schedules and inaccurate project-cost estimates will be produced if the inflation factor is neglected in an environment of high inflation. They also show that award of penalty or bonus is a catalyst for early completion of a project, just as it can be expected