In the construction industry, cash flow issues can impact both contractors and owners. Although finance-based scheduling (FBS) models were developed to control contractors’ cash flow, researchers completely disregarded cash flow management for owners’ portfolios. Therefore, FBS is once again introduced in this study from the perspective of the owners of portfolios.
For the FBS problem of portfolio owners (FBS-PO), a mixed integer linear program (MILP) model is developed. The purpose is to ensure that owners’ cash inflows are greater than cash outflows while minimizing the sum of weighted extensions of the projects in portfolios. Owing to the difficulties encountered in solving the proposed MILP model, genetic algorithm (GA) and particle swarm optimization (PSO) meta-heuristics are used. To ensure the feasibility of the solutions, a special serial schedule generation heuristic was developed in conjunction with the random key method for chromosome representation.
The GA produced higher-quality solutions compared to PSO, though it required more processing time. The GA has proven to be a far better choice than the MILP exact solver for bigger portfolios. Additionally, there is a linear correlation between the number of activities in portfolios and the amount of computational time required for the GA to converge.
This paper introduces the new research domain of FBS from the owners’ perspective (FBS-PO). In order to establish the FBS-PO as a stand-alone domain, a critical review of the FBS studies in the literature was conducted. In addition, the goals, characteristics, implementation and challenges of the FBS heuristics are benchmarked against those of the special serial schedule generation heuristic developed for the FBS-PO problem.
