Solving Multi-Mode Resource-Constrained Multi-Project Scheduling Problem with Combinatorial Auction Mechanisms

Abstract

This study solves a multi-project, multi-mode, and resource-constrained project scheduling problem. Multi-mode means that the activities in a project can be accomplished in one out of several execution modes, each of which represents an alternative combination of resource requirement of the activity. The present study considers the case that the resources need to be allocated first to individual projects by the upper-level manager, and then the project manager of each project schedules the project to optimize its outcome. In view of such a hierarchical decision-making structure, this study uses bi-level decentralized programming to model the problem. The proposed solution procedure employs combinatorial auction mechanisms to determine resource allocations to projects. A regular combinatorial auction and a fuzzy combinatorial auction are used, respectively, for cases of hard and soft capacity constraints. The proposed solution procedure is evaluated by comparison with the results reported in the literature.