Time-Cost-Quality Tradeoff Modeling based on Resource Allocation
Completion requirements
Read this article. The paper presents an optimization model that enables managers to effectively evaluate trade-offs related to time, cost, and other competing priorities. Pay particular attention to Section 6 as it provides an illustrated example of building a home.
Formulating PTCQTP Model
Calculating Overall Cost
The overall cost of a construction project is added up with each construction activity's cost and its administration cost \(\mathrm{AC}_{(i)}\). Thereby the overall cost \(\mathrm{C}\) is calculated as follows:
\(C=\sum\limits_{i=1}^{n}\left(\mathrm{LC}_{(i)}+\mathrm{MC}_{(i)}+\mathrm{EC}_{(i)}+\mathrm{AC}_{(i)}\right),\) (12)
where \(C=\) the overall cost of a construction project; \(\mathrm{LC}_{(i)}, \mathrm{MC}_{(i)}, \mathrm{EC}_{(i)}, \mathrm{AC}_{(i)}=\) the cost of labor, materials, equipment, and administration in construction activity (i) respectfully; \(n=\) number of all construction activities.