Scheduling and staffing multiple projects with a multi-skilled workforce

We consider the problem of simultaneously scheduling IT-projects and assigning multi-skilled internal and external human resources with resource-specific efficiencies to the project work. The objective is to minimize labor costs. The problem is modeled as a mixed-integer linear program (MIP) with a tight LP-bound. The performance of the model w.r.t. solution gap and computation time is assessed and managerial insight is given concerning different problem parameters such as the time window size of projects, the number of skills of human resources, and the workload. Furthermore, we show the benefit of applying the MIP compared to simple heuristics used in practice in terms of obtaining feasible and low-cost solutions. Finally, we provide insight into the benefit of applying the MIP in case of central compared to decentral planning.