Project Selection Using Fuzzy Group Analytic Network Process
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33032
Project Selection Using Fuzzy Group Analytic Network Process

Authors: Hamed Rafiei, Masoud Rabbani

Abstract:

This paper deals with the project selection problem. Project selection problem is one of the problems arose firstly in the field of operations research following some production concepts from primary product mix problem. Afterward, introduction of managerial considerations into the project selection problem have emerged qualitative factors and criteria to be regarded as well as quantitative ones. To overcome both kinds of criteria, an analytic network process is developed in this paper enhanced with fuzzy sets theory to tackle the vagueness of experts- comments to evaluate the alternatives. Additionally, a modified version of Least-Square method through a non-linear programming model is augmented to the developed group decision making structure in order to elicit the final weights from comparison matrices. Finally, a case study is considered by which developed structure in this paper is validated. Moreover, a sensitivity analysis is performed to validate the response of the model with respect to the condition alteration.

Keywords: Analytic network process, Fuzzy sets theory, Nonlinear programming, Project selection.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1079298

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1762

References:


[1] X. Hwang, "Optimal project selection with random fuzzy parameters," Int. J Prod. Econ., vol. 106, pp. 513-522, 2007.
[2] J. H. Lorie, and L. J. Savage, "Three problems in capital rationing," J. Bus., vol. 28, pp. 229-239, 1955.
[3] J. Wang, and W.-L. Hwang, "A fuzzy set approach for R&D portfolio selection using a real option valuation model," Omega, vol. 35, pp. 247-57, 2007.
[4] G. J. Beaujon, S. P. Marin, and G. C. McDonald, "Balancing and optimizing a portfolio of R&D projects," Naval Res. Logis., vol. 48, no. 1, pp. 18-40, 2001.
[5] G. J. Kyparisis, S. K. Gupta, and C.-M. Ip, "Project selection with discounted returns and multiple constraints," Eur. J. Oper. Res., vol. 94, pp. 87-96, 1996.
[6] R . Santhanam, and J. Kyparisis, "A multiple criteria decision model for information system project selection," Comput. Oper. Res., vol. 22, no. 8, pp. 807-18, 1995.
[7] H. P. Williams, Model Building in Mathematical Programming. John Wiley & Sons, 1999, pp. 67-80.
[8] D. Pisinger, "Budgeting with bounded multiple-choice constraints," Eur. J. Oper. Res., vol. 129, pp. 471-80, 2001.
[9] E. Melachrinoudis, and G. Kozanidis, "A mixed integer knapsack model for allocating funds to highway safety improvements," Trans. Res. Part A, vol. 36, pp. 789-803, 2002.
[10] M. A. Badri, and D. Davis, "A comprehensive 0-1 goal programming model for project selection," Int. J. Proj. Manage., vol.19, pp. 243-52,2001.
[11] S. C. Albright, "Allocation of research grants to university research proposals," Socioeconom. Plann. Sci., vol. 9, no. 5, pp. 189-95, 1975.
[12] N. K. Kwak, and C. Lee, "A multi-criteria decision-making approach to university resource allocation and information infrastructure planning," Eur. J. Oper. Res., vol. 110, pp. 234-42, 1998.
[13] G. Fandel, and T. Gal, "Redistribution of funds for teaching and research among universities: the case of North Rhine-Westphalia," Eur. J. Oper. Res., vol. 130, pp. 111-20, 2001.
[14] K. Mukherjee, and A. Bera, "Application of goal programming in project selection- a case study from the Indian coal mining industry," Eur. J. Oper. Res., vol. 82, pp. 18-25, 1995.
[15] J. L. Ringuest, and S. B. Graves, "The linear multi-objective R&D project selection problem," IEEE Trans. Eng. Manage., vol. 36, pp. 54-7, 1989.
[16] C. E. Kleinmuntz, and D.N. Kleinmuntz, "A Strategic approach for allocating capital in health care organizations," Healthc. Financ. Manage., vol. 53, pp. 52-8, 1999.
[17] A. L. Medaglia, S. B. Graves, and J. L. Ringuest, "A multi-objective evolutionary approach for linearly constrained project selection under uncertainty," Eur. J. Oper. Res., vol. 179, pp. 869-94, 2007.
[18] J. Liesio, P. Mild, and A. Salo, "Preference-programming for robust portfolio modeling and project selection," Eur. J. Oper. Res., vol. 181, no. 3, pp. 1488-1505, 2007.
[19] G. Mavrotas, D. Diakoulaki, and A. Kourentzis, "Selection among ranked projects under segmentation, policy and logical constraints," Eur. J. Oper. Res., vol. 187, pp. 177-192, 2008.
[20] S. Ghorbani, and M. Rabbani, "A new multi-objective algorithm for a project selection problem," Adv. Eng. Softw., vol. 40, pp. 9-14, 2009.
[21] D. Al-Rashdan, B. Al-Kloub, A. Dean, and T. Al-Shemmeri, "Environmental impact assessment and ranking the environmental projects in Jordan," Eur. J. Oper. Res., vol. 118, pp. 30-45. 1999.
[22] N. Halouani, H. Chabchoub, and J.-M. Martel, "PROMETHEE-MD-2T method for project selection," Eur. J. Oper. Res., (2007), doi:10.1016/j.ejor.2007.11.016
[23] K. Golabi, C. W. Kirkwood, and A. Sicherman, "Selecting a portfolio of solar energy projects using multiattribute preference theory," Manage. Sci., vol. 27, pp. 174-189. 1981.
[24] M. Abu-Taleb, and B. Mareschal, "Water resources planning in the middle east: Application of the PROMETHEE V multicriterion method," Eur. J. Oper. Res., vol. 81, pp. 500-511, 1995.
[25] A. Henriksen, A. J. Traynor, "A practical R&D project-selection scoring tool," IEEE Trans. Eng. Manage., vol. 46, pp. 158-70, 1999.
[26] G. Mavrotas, D. Diakoulaki, and P. Capros, "Combined MCDA — IP approach for project selection in the electricity market," Ann. Oper. Res., vol. 120, pp. 159-170, 2003.
[27] G. Mavrotas, D. Diakoulaki, and Y. Caloghirou, "Project prioritization under policy restrictions. A combination of MCDA with 0-1 programming," Eur. J. Oper. Res., vol. 171, pp. 296-308, 2006.
[28] A. Salo, T. Gustafsson, and P. Mild, "Prospective evaluation of a cluster program for Finnish forestry and forest industries," Int. Trans. Oper. Res., vol. 11, pp. 139-54, 2004;
[29] A. Chames, and W. W. Cooper, "Chance-constrained programming," Manage. Sci., vol. 6, pp. 73-79, 1959.
[30] A. J. Keown, and J. D. Martin, "A chance constrained goal programming model for working capital management," Eng. Econ., vol. 22, pp. 153-174, 1977.
[31] A. J. Keown, and B. W. Taylor, "A chance-constrained integer goal programming model for capital budgeting in the production area," J. Oper. Res. Soc., vol. 31, pp. 579-589, 1980.
[32] P. K. De, D. Acharya, and K. C. Sahu, "A chance-constrained goal programming model for capital budgeting," J. Oper. Res. Soc., vol. 33, pp. 635-638, 1982.
[33] J. U. Buckley, "The fuzzy mathematics of finance," Fuzzy Sets Syst., vol. 21, pp. 257-273, 1987.
[34] Y. J. Lai, and H. C. Lai, "Possibilistic linear programming for managing interest rate risk," Fuzzy Sets Syst., vol. 54, pp. 135-146, 1993.
[35] P. Liang, and F. Song,"Computer-aided risk evaluation system for capital investment," Omega, vol. 22, pp. 391-400, 1994.
[36] C. Y. Chiu, and C. S. Park, "Fuzzy cash flow analysis using present worth criterion," Eng. Econ., vol. 39, pp. 113-138, 1994.
[37] K. Iwamura, and B. Liu, "Chance constrained integer programming models for capital budgeting in fuzzy environments," J. Oper. Res. Soc., vol. 49, pp. 854-860, 1998.
[38] D. Kuchta, "Fuzzy capital budgeting," Fuzzy Sets Syst., vol. 111, pp. 367-385, 2000.
[39] C. Kahraman, D. Ruan, and E. Tolga, "Capital budgeting techniques using discounted fuzzy versus probabilistic cash flows," Inf. Sci., vol. 142, pp. 57-76, 2002.
[40] T. L. Saaty, Decision Making with Dependence and Feedback: The analytic network process. RWS Publications, 1996, pp. 21-43.
[41] L. A. Zadeh," Fuzzy sets," Inf. Control., vol. 8, pp. 338-353, 1965.
[42] A. Chu, R. Kalaba, and K. Springarn, "A comparison of two methods for determining the weights of belonging to fuzzy sets," J. Opt. Theory. Appl., vol. 27, pp. 531-541, 1979.
[43] T. L. Saaty, The analytic hierarchical process, New York: McGraw-Hill, 1980, pp. 24-35.
[44] C.-L. Hwang, Yoon K., Multiple Attribute Decision Making: Methods and Applications, Springer-Verlag, 1981, pp. 104-121.