Abstract
Project portfolio selection is one of the most important decision-making problems for most organizations in project management and engineering management. Usually project portfolio decisions are very complicated when project interactions in terms of multiple selection criteria and preference information of decision makers (DMs) in terms of the criteria importance are taken into consideration simultaneously. In order to solve this complex decision-making problem, a multi-criteria project portfolio selection problem considering project interactions in terms of multiple selection criteria and DMs’ preferences is first formulated. Then a genetic algorithm (GA)-based nonlinear integer programming (NIP) approach is used to solve the multi-criteria project portfolio selection problem. Finally, two illustrative examples are presented for demonstration and verification purposes. Experimental results obtained indicate that the GA-based NIP approach can be used as a feasible and effective solution to multi-criteria project portfolio selection problems.
Similar content being viewed by others
References
Aaker, D. A., & Tyebjee, T. T. (1978). A model for the selection of interdependent R&D projects. IEEE Transactions on Engineering Management, 25, 30–36.
Abiyev, R. H., & Menekay, M. (2007). Fuzzy portfolio selection using genetic algorithm. Soft Computing, 11, 1157–1163.
Boros, E., & Hammer, P. (2002). Pseudo-Boolean optimization. Discrete Applied Mathematics, 123, 155–225.
Bouyssou, D., Marchant, T., Pirlot, M., Tsoukias, A., & Vincke, P. (2006). Evaluation and decision models with multiple criteria: stepping stones for the analyst. New York: Springer.
Carlsson, C., & Fuller, R. (1995). Multiple criteria decision making: the case for interdependence. Computers & Operations Research, 22, 251–260.
Carraway, R. L., & Schmidt, R. L. (1991). An improved discrete dynamic programming algorithm for allocating resources among interdependent projects. Management Science, 37, 1195–1200.
Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (1999). New product portfolio management: practices and performance. Journal of Product Innovation Management, 16, 333–351.
Cox, D. R. (1984). Interaction. International Statistical Review, 52, 1–25.
Dickinson, M. W., Thornton, A. C., & Graves, S. (2001). Technology portfolio management: optimizing interdependent projects over multiple time periods. IEEE Transactions on Engineering Management, 48, 518–527.
Ewing, P. L. Jr., Tarantino, W., & Parnell, G. S. (2006). Use of decision analysis in the army base realignment and closure (BRAC) 2005 military value analysis. Decision Analysis, 3, 33–49.
Fox, G. E., Baker, N. R., & Bryant, J. L. (1984). Economic models for R and D project selection in the presence of project interactions. Management Science, 30, 890–902.
Golabi, K. (1987). Selecting a group of dissimilar projects for funding. IEEE Transactions on Engineering Management, 34, 138–145.
Golabi, K., Kirkwood, C. W., & Sicherman, A. (1981). Selecting a portfolio of solar energy projects using multiattribute preference theory. Management Science, 27, 174–189.
Goldberg, D. E. (1989). Genetic algorithms in search, optimization, and machine learning. New York: Addison-Wesley.
Hammer, P., & Rudeanu, S. (1968). Boolean methods in operations research and related areas. Berlin: Springer.
Henriksen, A. D. P., & Palocsay, S. W. (2008). An Excel-based decision support system for scoring and ranking proposed R&D projects. International Journal of Information Technology and Decision Making, 7(3), 529–546.
Keeney, R. L., & Raiffa, H. (1976). Decisions with multiple objectives: preferences and value trade-offs. New York: Wiley.
Kleinmuntz, D. N. (2007). Resource allocation decisions. In W. Edwards, R. F. Miles, & D. von Winterfeldt (Eds.), Advances in decision analysis: from foundations to applications. New York: Cambridge University Press.
Kleinmuntz, C. E., & Kleinmuntz, D. N. (1999). Strategic approaches for allocating capital in healthcare organizations. Healthcare Financial Management, 53, 52–58.
Korhonen, P., Moskowitz, H., & Wallenius, J. (1992). Multiple criteria decision support—a review. European Journal of Operational Research, 63, 361–375.
Kuei, C. H., Lin, C., Aheto, J., & Madu, C. N. (1994). A strategic decision model for the selection of advanced technology. International Journal of Production Research, 32, 2117–2130.
Liesio, J. (2006). Robust portfolio optimization in multi-criteria project selection. Licentiate’s Thesis, Helsinki University of Technology.
Liesio, J., Mild, P., & Salo, A. (2007). Preference programming for robust portfolio modeling and project selection. European Journal of Operational Research, 181, 1488–1505.
Markowitz, H. M. (1952). Portfolio selection. Journal of Finance, 7, 77–91.
Mavrotas, G., Diakoulaki, D., & Caloghirou, Y. (2006). Project prioritization under policy restrictions: a combination of MCDA with 0–1 programming. European Journal of Operational Research, 171, 296–308.
Medaglia, A. L., Graves, S. B., & Ringuest, L. J. (2007a). A multiobjective evolutionary approach for linearly constrained project selection under uncertainty. European Journal of Operational Research, 179, 869–894.
Medaglia, A. L., Hueth, D., Mendieta, J. C., & Sefair, J. A. (2007b). Multiobjective model for the selection and timing of public enterprise projects. Socio-Economic Planning Sciences, 41, 31–45.
Ostermark, R. (1997). Temporal interdependence in fuzzy MCDM problems. Fuzzy Sets and Systems, 88, 69–79.
Peng, Y., Kou, G., Shi, Y., & Chen, Z. (2008a). A descriptive framework for the field of data mining and knowledge discovery. International Journal of Information Technology and Decision Making, 7(4), 639–682.
Peng, Y., Kou, G., Shi, Y., & Chen, Z. (2008b). A multi-criteria convex quadratic programming model for credit data analysis. Decision Support Systems, 44(4), 1016–1030.
Roy, B. (1996). Multicriteria methodology for decision aiding nonconvex optimization and its applications. Dordrecht: Kluwer Academic.
Santhanam, R., & Kyparisis, J. (1995). A multiple criteria decision model for information system project selection. Computers & Operations Research, 22, 807–818.
Stewart, T. J. (1992). A critical survey on the status of multiple criteria decision making theory and practice. Omega, 20, 569–586.
Stummer, C., & Heidenberger, K. (2003). Interactive R&D portfolio analysis with project interdependencies and time profiles of multiple objectives. IEEE Transactions on Engineering Management, 50, 175–183.
Stummer, C., Kiesling, E., & Gutjahr, W. J. (2009). A multicriteria decision support system for competence-driven project portfolio selection. International Journal of Information Technology and Decision Making, 8(2), 379–401.
Talias, M. A. (2007). Optimal decision indices for R&D project evaluation in the pharmaceutical industry: Pearson index versus Gittins index. European Journal of Operational Research, 177, 1105–1112.
Yu, L., Wang, S. Y., & Lai, K. K. (2006). An integrated data preparation scheme for neural network data analysis. IEEE Transactions on Knowledge and Data Engineering, 18, 217–230.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Yu, L., Wang, S., Wen, F. et al. Genetic algorithm-based multi-criteria project portfolio selection. Ann Oper Res 197, 71–86 (2012). https://doi.org/10.1007/s10479-010-0819-6
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10479-010-0819-6