Scheduling the construction of value and discount weighted trees for maximum net present value
PA Grossman, M Brazil, JH Rubinstein, DA Thomas
Computers and Operations Research | Elsevier | Published : 2020
Given a binary rooted tree in which each edge has an associated value and an associated discount factor, the problem addressed here is to determine which nodes should be visited and in what order so as to maximise the net present value calculated from the values and discount factors of the traversed edges. A process for determining which nodes to exclude is identified, some key properties of the solution are established, and an algorithm for generating an optimal sequence of nodes is presented. A key concept is the priority of a sequence of nodes, which is a certain function of the values and discount factors that determines whether the order of adjacent nodes in the sequence should be swapp..View full abstract
Related Projects (1)
Awarded by Australian Research Council
This research was supported by the Australian Research Council, Rand Mining Ltd and Tribune Resources Ltd via ARC Linkage Grant LP140100124.