Profit Optimization for Multiproject Scheduling Problems Considering Cash Flow

Abstract

This study investigates cash flow for profit optimization and handles scheduling problems in multiproject environment. By identifying the amount and timing of individual inflow or outflow at the end of each period, contractors can observe the cash flow at specific time points according to project progress. Since most companies handle multiple projects simultaneously, managing project finance becomes complicated and tough for contractors. Therefore, this study considers cash flow and the financial requirements of contractors working in a multiple-project environment and proposes a profit optimization model for multiproject scheduling problems using constraint programming. The current study also presents a hypothetical example involving three projects to illustrate capability of the proposed model and adopts various constraints, including credit limit (CL) and due dates, for scenario analysis. The analysis result demonstrates that setting CLs ensures smooth financial pressure by properly shifting activities, and assigning due dates for projects helps planners avoid project duration extension while maximizing overall project profit.