Managing Stochastic, Finite Capacity, Multi-Project Systems through the Cross-Entropy Methodology

This paper addresses the problem of loading a finite capacity, stochastic (random) and dynamic multi-project system. The system is controlled by keeping a constant number of projects concurrently in the system. A new approach, based on the Cross-Entropy (CE) method, is proposed to determine optimal loading of the system. Through numerical experiments, we demonstrate the CE method performance and show new insights into its behavior in a noisy system. Particularly, we suggest a trade-off between the convergence time, the number of iterations and the noise level.

• Type: Journal
• Year: 2005
• Where: ANOR
• Authors: Izack Cohen, Boaz Golany, Avraham Shtub
• Keywords: ANOR 2005, Constant Number, Finite Capacity, Optimal Loading