Sustainable project portfolio selection considering combined rankings under uncertainty: A case study

Document Type : Research Paper

Authors

1 Department of industrial engineering, Yazd University, Yazd, Iran

2 Department of Industrial Engineering, Yazd University, Iran

10.22059/aie.2023.358307.1866

Abstract

Due to resource limitations, project-oriented organizations are always deciding to choose among their candidate projects. In sustainable decision making, in addition to responding to internal needs of the organization, responding to social needs and protecting the environment are also taken into consideration. In this article, a combined approach has been presented to select investment projects in a sustainable manner to determine the ranking of projects based on combined output of several multi-attribute decision-making methods has been presented. The problem of project selection has been modeled and analyzed in a non-deterministic way using a robust optimization approach. In the studied case, six projects were selected by the deterministic model, while the robust model has reduced them to three projects due to the pessimistic modeling approach. It was also observed that by taking into account the uncertainty, the optimal values of three objective functions have been reduced 28%, 46%, and 28% respectively; but the validity of the answers is guaranteed in non-deterministic real-world situations, which is very important in the investment problems. The main benefits of the proposed approach are: 1) integrating evaluation and selection phases in order to make wise and optimal decisions, 2) combining the results of different MCDM methods which helps the managers for selecting the projects which are generally acceptable by different MCDM methods, 3) because a robust optimization model is implemented, the model solutions remain more feasible in resource fluctuations, and 4) the model prevents ignoring high-priority projects which can be outranked by permutations of lower-priority projects.

Keywords

Main Subjects

Advances in Industrial Engineering

Articles in Press, Accepted Manuscript
Available Online from 19 December 2023

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