Document Type : Research Paper


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.


  1. زارع اشکذری، ج.(1384). "سیستم مدیریت سبد پروژه،مفاهیم و مبانی رویکرد"، کنفرانس بین المللی مدیریت پروژه.
  2. علی نژاد، ع.، سیمیاری، ک.(1392). "انتخاب سبد بهینه پروژه با استفاده از رویکرد تلفیقی DEA/DEMATEL "، فصلنامه علمی-  پژوهشی مطالعات مدیریت صنعتی، بهار، سال یازدهم، شماره 28.
  3. فضلی، ص.، تقی زاده، ر.(1389). "روش رتبه بندی فازی برای پورتفوی بهینه در بورس اوراق بهادار تهران"، فصلنامه علمی-  پژوهشی مطالعات مدیریت صنعتی ، زمستان، سال هشتم، شماره 19.
  4. کتابی، س.، حق شناس، ا.، حدادیان، ع.(1387). "انتخاب چندمعیاره تامین کنندگان با استفاده از AHPفازی"، فصلنامه علمی-  پژوهشی مطالعات مدیریت صنعتی، پاییز، شماره 12.
    1. Abu-Taleb, M.F., Mareschal B, "Water resources planning in the Middle East: application of the PROMETHEE V multi criteria method", European Journal of Operational Research 81, 500–511, 1995.
    2. Aouni, B., Colapinto, C., La Torre, D., "Financial portfolio management through the goal programming model: Current state-of-the-art", European Journal of Operational Research 234, 536–545, 2014.
    3. Archer, N.P., Ghasemzade, F., "An integrated framework for project portfolio selection", International Journal of Project Management 17,  207-216, 1999
    4. Arman, H., Kabli, M., Gindy, N.N.Z., "Integer Linear Programming Model to Optimize the Decision-making in R&D Investments" In: EuroMOT, Nice, France, 17-19, 2008.
    5. Badri, M. A., Davis, D.,"A Comprehensive 0-1 Goal Programming Model for Project Selection",  International Journal of Project Management, 19, 243-252, 2001.
    6. Bhattacharyya, R., " A grey theory based multiple attribute approach for R&D project portfolio selection." Fuzzy information and engineering 7, 211-225, 2015.
    7. Brans, J.P., Mareschal, B., "PROMETHEE V: MCDM problems with segmentation constraints", INFOR 30, 85–96,1992.
    8. Chang, P.T., Lee, J.H., "A fuzzy DEA and knapsack formulation integrated model for project selection", Computers & Operations Research39, 112–125, 2012
    9. Chang, D.Y., "Application of the extent analysis method on fuzzy AHP", European Journal of Operational Research 95 ,649-655, (1996).
    10. Cooper, R.G., Edgett, S.j., Kleinschmidt, E.J., "New product portfolio management: practice and performance", Journal of Production and Innovation Management, 16, 333-351, 1999.
    11. Ebrahimnejad, S., Hosseinpour, M.H., Mohammadi Nasrabadi, A., "a fuzzy bi-objective mathematical model for optimum portfolio selection by considering inflation rate effects", The International journal of Advanced Manufacturing Technology69, 595-616, 2013.
    12. Ferreira, L., Borenstein, D., Santi, E., " Hybrid fuzzy MADM ranking procedure for better alternative discrimination",  Engineering applications of artificial intelligence 50, 71-82, 2016.
    13. Ghasemzadeh,F., Archer,N.," Project portfolio selection through decision support" , Decision Support Systems29, 73-88, 2000.
    14. Ghasemzadeh,F., Archer,N., Iyogun,p.," A zero-one model for project portfolio selection and scheduling", Journal of the Operational Research Society 50, 745-755, 1999.
    15. Ghasemzade, F., "Project portfolio selection: A decision support approach", PHD thesis, Mc Master university, 1998.
    16. Gogus, O., Boucher, T.O., "Strong transitivity, rationality and weak monotonicity in fuzzy pairwise comparisons", Fuzzy Sets and Systems 94,133 144, (1998).
    17. Gonzales, E., Fernandez, R., Cruz Reyes, L., Rivera,G., "Memetic algorithm for solving the problem of social portfolio using outranking model", In Recent Advances on Hybrid Intelligent systems, 335-348, 2013.
    18. Guo, P., J.J. Liang, Y.M. Zhu, J.F.Hu, "R&D  project portfolio selection model analysis within project interdependencies context", In Industrrial Engineering and Engineering Management, 994-998, 2008.
    19. Guo, S., Yu, L., Li, X., Kar, S., "Fuzzy multi-period portfolio selection with different investment horizons", European Journal of Operational Research 25, 1026–1035, 2016.
    20. Gupta, P.,  Mehlawat, M.K.,  Saxena, A., "Asset portfolio optimization using fuzzy mathematical programming", Information Sciences 178, 1734–1755,2008.
    21. Hess, S. W., "A Dynamic Programming Approach to R and D Budgeting and Project Selection", IRE Transactions on Engineering Management, 9(4), 17٠-179,1962
    22. Hoff, A., Andersson, H., Christiansen, M., Hasle G., Lokketangen, A., "Industrial aspects and literature survey: fleet composition and routing", Computers and Operations Research 37, 2041–2061, 2010.
    23. Huang, C.C., Chu, P.Y., Chiang, Y.H., " A fuzzy AHP application in government-sponsored R&D project selection", Omega 36, 1038-1052, 2008.
    24. Jadidi, O., Cavalieri, S., Zolfaghari, S., "An improved multi-choice goal programming approach for supplier selection problems", Applied Mathematical Modelling 39, 4213–4222, 2٠15.
    25. Kao, H.P., Brain, W., Dong, J., Ku, K.C., "An event-driven approach with makespan/cost tradeoff analysis for project portfolio scheduling.", Computers in industry 57,379-397, 2006.
    26. Kornfeld, B.J., Kara, S., "A framework for developing portfolios of improvements projects in manufacturing", Procedia CIRP 7, 377 – 382, 2013.
    27. Loch, Ch. H., Kavadias, S., "Dynamic portfolio selection of NPD programs using marginal returns." Management Science 48, 1227-1241, 2002.
    28. Lockett, A., Freeman, P., "probabilistic Networks and R&D portfolio selection", Operational Research Quarterly, 353-359, 1970.
    29. Markowitz, H.M. Portfolio Selection: Efficient Diversification of  Investments
    30. Martino, J. P., "Research and Development Project Selection", New York: John Wiley & Sons, Inc, 1995.
    31. Nikolic, D., Jovanovic, I., Mihajlovic, I., Zivkovic,Z., "Multi-criteria ranking of copper concentrates according to their quality—an element of environmental management in the vicinity of copper-smelting complex in Bor, Serbia", Journal of Environmental Management 91,509–515, 2009.
    32. Parra, M.A., Terol, A.B., Uria, M.V.R., “A fuzzy goal programming approach to portfolio selection",  European Journal of Operational Research 113, 287-297, 2001.
    33. Rahmani, N., Talebpour, A., Ahmadi, T., "Developing aMulti Criteria Model for Stochastic IT Portfolio Selection by AHP Method", Procedia - Social and Behavioral Sciences 62, 1041 – 1045, 2012.
    34. Reginaldo,F., “Portfolio Management in Brazil and a Proposal for Evaluation and Balancing of Portfolio Projects with ELECTRE TRI and IRIS”, Procedia Computer Science, 55, 1265-1274,. 2015
    35. Saborido, R., Ruiz, A.,  Bermúdez, J., Vercher, E., Luque, M., "Evolutionary multi-objective optimization algorithms for fuzzy portfolio selection",  Applied Soft Computing 39, 48-63, 2016
    36. Smith-Perera, A., García-Melón, M., Poveda-Bautista, R., Pastor-Ferrando, J.P., "A Project Strategic Index proposal for portfolio selection in electrical company based on the Analytic Network Process", Renewable and Sustainable Energy Reviews 14, 1569–1579, 2010.
    37. Souder, W. E., "Analytical Effectiveness of Mathematical Models for R&D Project Selection", Management Science, 19(8), 907-923, 1973.
    38. Stummer, C., Heidenberger, K., "Interactive R & D portfolio analysis with project interdependencies and time profiles of multiple objectives", IEEE Transactions on Engineering Management 50,175–83, 2003
    39. Taru, A., "Strategies and methods for project portfolio management", TU-22.451 Seminar in Project Management, Helsinki Univesity of Technology, 2000.
    40. Tsaur, R.CH., "Fuzzy portfolio model with different investor risk attitudes", European Journal of Operational Research 227, 385–390, 2013.
    41. Wei, C.C., Chang, H.W., "A new approach for selecting portfolio of new product development projects", Expert Systems with Applications 38 , 429–434, 2011.
    42. Weng Siew, L., Hj. Jaaman, S.H., bin Ismail, H., "The impact of human behaviour towards portfolio selection in Malaysia", Procedia - Social and Behavioral Sciences 172, 674 – 678, 2015.
    43. Yu, L., Wang, S., Wen, F., Lai, K.K., "Geneticalgorithm-Based multi-criteria project portfolio selection", Annals of   Operations Research197, 71-86, 2012.
    44. Zopounidis C., "Multicriteria decision aid in financial management", European Journal of Operational Research 119, 404–415, 1999.