Stochastic Optimization Modeling and Quantitative Project Management

A successful project effectively manages four cornerstones—schedule, cost, scope, and quality—to achieve its goals. Every project activity influences these four cornerstones. Stochastic optimization modeling factors in the uncertainties associated with project activities and provides insight into the expected project outputs as probability distributions rather than as deterministic approximations. Integrating stochastic optimization modeling with quantitative project management provides near-real-time feedback, enabling projects to monitor areas that induce maximum variability and thereby initiate corrective actions as required.