A decomposition approach to project compression with concave activity cost functions
Abstract This article develops a solution methodology for project time compression problems in CPM/PERT type networks with convex or concave activity cost-duration functions. The proposed procedure actually approximates these relationships by piece-wise linear time-cost curves. The solution procedure is based on the Benders decomposition approach and seeks to minimize die total direct cost of a project subject to activity precedence relationships, as well as upper/lower bounds on activity durations. The computational efficiency of the proposed decomposition methodology is also discussed.
At one level, this paper may be regarded as an exercise in comparative industrial organisation. We are primarily interested in accounting for the highly successful performance of Japanese manufacturing firms in the innovation process. In pursuing this goal, however, it will be necessary to ‘unpack’, and to examine critically, some intellectual baggage that has strongly shaped and influenced the approach to innovative activity in the recent past. To the extent that our approach is convincing, it suggests a reordering of focus and emphasis in the study of innovation.