Sequential Experimentation for Estimating the Optimal Delay of Activities in PERT Networks

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Authors
Buss, Arnold H.
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1995
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Abstract
We apply Response Surface Methodology (RSM) utilizing simple fractional designs to optimize the Expected Present Value (EPV) of a stochastic project network with respect to the delay of activities. Such delay could increase EPV by postponing negative cash flows, possible at the expense of also delaying the final payment for the project. The problem was challenging due to a combination of high variability with relatively fl.at objective function near the optimum. Comparisons with the true optimal solutions, where available, indicated the robustness of the approach.
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Conference Paper
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Proceedings of the 1995 Winter Simulation Conference ed. C. Alexopoulos, I\. Kang, W. R. Lilegdon, and D. Goldsman
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Operations Research (OR)
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defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
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