Network programming technique in project management problems

Abstract

Network programming technique is developed to derive exact solutions or their lower (upper) bound estimates in multi-extremal (in particular, discrete) optimization problems. The idea of the technique lies in reducing the problem to a superposition of simpler problems. The scheme of reduction is conveniently represented in the form of a network (referred to as network representation), with nodes being the subproblems that enter the superposition. Simple optimization problems are solved at each node, while the solution at the terminal node of the network yields the upper (lower) bound estimate for the initial problem. In the case of tree-shaped network representation, the solution at the terminal node of the network provides the exact solution to the initial optimization problem. This paper overviews application of the network programming technique to several problems of project management.