A stochastic model to control project duration and expenditure

Many models of Project Management and Scheduling have recognized the non-deterministic nature of the duration of activities but, unfortunately, have adopted deterministic descriptions for resources and expenditures. In this paper, a stochastic model is proposed considering the stochastic nature of durations and expenditures as well as their statistical interdependence. Advanced analytical results are deduced to assess the financial risk of a project as well as to plan and to control its financial profiles.