A stochastic multimode model for time–cost tradeoffs under management flexibility

In this paper, we present a useful bicriteria model for analyzing the time–cost tradeoffs that can be achieved when undertaking a project consisting of a single task. Some related mathematical results are also presented. The model assumes that several different processes may be used to undertake the task, defining different operating modes, and also assuming that managers may change the process in use after the task is started, depending on the way the task is developing. The model is easy to use, and it can be applied to a large number of real-life situations when the objectives are to minimize cost and time. We present some ideas for an algorithm aimed at identifying sets of relevant strategies from which the decision-maker may choose a suitable strategy. We also present several mathematical properties that may be useful for such an algorithm.