Maximizing projects’ profitability, environmental score, and quality: a multi-project scheduling and material ordering problem

Abstract

Abstract The proper trade-off between various project costs is often disregarded when planning projects. This leads to several detrimental effects, such as inaccurate planning and higher total cost, far more significant in a multi-project environment. To overcome this limitation, this study proposes a combined approach for the multi-project scheduling and material ordering problem (MPSMOP), which maintains the proper trade-off among various costs. Moreover, the environmental impact and project quality objectives are optimized alongside the economic criterion. The proposed methodology involves three stages: (a) quantifying the environmental performance of suppliers; (b) measuring the activities’ quality through the Construction Quality Assessment System approach; and (c) building and solving the mathematical model of the MPSMOP. The MPSMOP is modeled as a tri-objective optimization approach aiming to determine project scheduling and material ordering decisions so that the net present value, environmental score, and total quality of implemented projects are maximized simultaneously. As the proposed model comes into the nondeterministic polynomial optimization problem category, two powerful metaheuristics are customized and used to solve the problem. The efficiency of both algorithms was assessed on several datasets. The proposed framework is applied to railway construction projects in Iran as a case study, which presents the validity of the model and the decision-making options provided to managers.