Authors:
Nobuaki Ishii
1
;
Yuichi Takano
2
and
Masaaki Muraki
3
Affiliations:
1
Kanagawa University, Japan
;
2
Senshu University, Japan
;
3
Tokyo Institute of Technology, Japan
Keyword(s):
Competitive Bidding, Discrete Event Simulation, Project Selection, Resource Allocation.
Related
Ontology
Subjects/Areas/Topics:
Application Domains
;
Artificial Intelligence
;
Business Analytics
;
Business Process Management
;
Cardiovascular Technologies
;
Computing and Telecommunications in Cardiology
;
Construction Engineering and Project Management
;
Data Engineering
;
Decision Support Systems
;
Decision Support Systems, Remote Data Analysis
;
Discrete-Event Simulation
;
Dynamical Systems Models and Methods
;
e-Business
;
Enterprise Engineering
;
Enterprise Information Systems
;
Formal Methods
;
Health Engineering and Technology Applications
;
Knowledge Management and Information Sharing
;
Knowledge-Based Systems
;
Simulation and Modeling
;
Symbolic Systems
Abstract:
The cost estimation process, carried out by the contractor before the start of a project, is a critical activity for the contractor in accepting profitable EPC projects in competitive bidding situations. Thus, the contractor should devote significant time and resources to the accurate cost estimation of project orders from clients. However, it is impossible for any contractor to devote enough time and resources to all the orders because such resources are usually limited. For this reason, the contractor must dynamically decide bid or no-bid on the orders at each order arrival, and allocate the limited resources to the chosen orders. To maximize the contractor’s profits, this study devises a heuristic scheduling method for dynamically selecting orders and allocating the limited resources to them, on the basis of the resource requirement of the order, the contractor’s resource utilization, and the expected profit from the order. The effectiveness of our method is demonstrated through s
imulation experiments using a project cost estimation process model.
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