Solving the Project Time/Cost Tradeoff Problem Using the Minimal Cut Concept

Abstract

This paper introduces a solution procedure for solving the project time/cost tradeoff problem of reducing a project duration at a minimum cost. The solution to the time/cost problem is achieved by locating a minimal cut in a flow network derived from the original project network. This minimal cut is then utilized to identify the project activities which should experience a duration modification in order to achieve the total project reduction. The paper will document this cut-based procedure and provide a practical application to a project situation.