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Project Portfolio Selection Using a Combination of Fuzzy Analytic Hierarchy Process and A Modified Integer Linear Programming

Document Type : Research Paper

Abstract

The selection of project portfolio is the main problem in project-based organizations. In project selection, optimized decision to maximizing utilization of limited resources and achieving organizational goals by considering restrictions are important. Therefore, to facilitate project portfolio selection in project-based organizations, an efficient model is proposed that is able to consider limitations, goals, and priorities of the organization in selecting the optimal combination of projects. The proposed model is a hybrid and flexible one which, including four main steps. First, with initial screening, to save time and money by using non-compensatory method, some of the poor candidate options are deleted. Then, due to multi-criteria nature of the problem, qualitative and quantitative criteria, and uncertainty of data in real world, the projects are ranked using fuzzy analytic hierarchy processes and uncertain judgments of decision-makers. To generate project baskets, integer linear programming (ILP), backpack model, is employed modifying the coefficients of the objective function of each project to preserve multi-criteria rating of projects, and then evaluate and rank the baskets. To validate the proposed model, we have carried out selection of project portfolio in the oil refining industry.

Keywords

References
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Industrial Management Studies
Volume 17, Issue 52
April 2019
Pages 339-385
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