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Balancing strategic contributions and financial returns: a project portfolio selection model under uncertainty

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Abstract

This paper constructs a project portfolio selection model from the strategic perspective. Two goals are proposed for the portfolio to achieve, i.e., strategic contributions and financial returns. The uncertainties involved are addressed with fuzzy real options. Then, a modified multi-objective genetic algorithm is designed to determine the portfolios. Finally, a real case is provided to validate the model’s effectiveness. The results demonstrate that the proposed algorithm can optimize two objectives simultaneously and keep the plausible Pareto-optimal set which wins over the single-objective model solutions in achieving the shared value.

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Acknowledgements

This work was supported by the National Natural Science Foundation of China (Grant No. 71172123), Natural Science Basic Research Plan in Shaanxi Province of China (Program No. 2015JM7382), Social Science Foundation in Shaanxi Province of China (Program No. 2015R005), Soft Science Research Plan in Shaanxi Province of China (Program No. 2015KRM039).

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Authors and Affiliations

  1. Management School, Northwestern Polytechnical University, #127 Youyi West Road, Xi’an, 710129, China

    Yuntao Guo, Lin Wang, Suike Li, Zhi Chen & Yin Cheng

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  1. Yuntao Guo
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  2. Lin Wang
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  3. Suike Li
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  4. Zhi Chen
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  5. Yin Cheng
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Correspondence to Lin Wang.

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Communicated by X. Li.

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Guo, Y., Wang, L., Li, S. et al. Balancing strategic contributions and financial returns: a project portfolio selection model under uncertainty. Soft Comput 22, 5547–5559 (2018). https://doi.org/10.1007/s00500-018-3294-7

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