Optimal project sequencing with recourse at a scarce resource

Kavadias, S; Loch, CH

dc.contributor.author	Kavadias, S	en
dc.contributor.author	Loch, CH	en
dc.date.accessioned	2014-03-01T01:53:00Z
dc.date.available	2014-03-01T01:53:00Z
dc.date.issued	2003	en
dc.identifier.issn	10591478	en
dc.identifier.uri	https://dspace.lib.ntua.gr/xmlui/handle/123456789/26821
dc.relation.uri	http://www.scopus.com/inward/record.url?eid=2-s2.0-5644271863&partnerID=40&md5=b803613a71a72ad86037db033dcfe4b4	en
dc.subject	Dynamic programming	en
dc.subject	Portfolio selection	en
dc.subject	Product development	en
dc.subject	Project prioritization	en
dc.subject	Resource allocation	en
dc.title	Optimal project sequencing with recourse at a scarce resource	en
heal.type	journalArticle	en
heal.publicationDate	2003	en
heal.abstract	We develop a dynamic prioritization policy to optimally allocate a scarce resource among K projects, only one of which can be worked on at a time. When the projects' delay costs differ, the problem (a ""restless bandit"") has not been solved in general. We consider the policy of working on the project with the highest expected delay loss as if the other project was completely finished first (although recourse is allowed). This policy is optimal if: (1) the delay cost increases with the delay regardless of the performance state, (2) costs are not discounted (or, discounting is dominated by delay costs), (3) projects are not abandoned based on their performance state during processing at the scarce resource, and (4) there are no stochastic delays. These assumptions are often fulfilled for processing at specialized resources, such as tests or one-off analyses.	en
heal.journalName	Production and Operations Management	en
dc.identifier.volume	12	en
dc.identifier.issue	4	en
dc.identifier.spage	433	en
dc.identifier.epage	444	en