Cash Flow Optimization by Genetic Algorithm in a Road Network Building

Abstract

In this paper a method for optimization of cash flows in the construction and management of road network is presented. On the basis of the last official National highway Construction Program (NPIA) update, in 2004, the methodology and a computer program that simulate and optimize the cash flow with genetic algorithm were designed. The computer program contains the model that simulate the cash flows, and the optimization algorithm, which runs through the delayed construction of individual road sections. For criteria the maximized net present value (NPV) and minimized the time deviation from the original plan were used. Multi-criteria optimization is discussed by using different weights. The optimization results were the optimal values of selected financial and time parameters, which are shown on the Pareto curve.