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A multi-objective multi-period mathematical programming model for integrated project portfolio optimization and

Mostafa Zahedirad1, Kaveh Khalili-Damghani1, Vahidreza Ghezavati1

  • 1Department of Industrial Engineering, ST.C., Islamic Azad University, Tehran, Iran.

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Summary
This summary is machine-generated.

This study presents two methods for project portfolio optimization and contractor selection. An integrated model simultaneously optimizing both aspects significantly outperforms a sequential approach, offering better results and faster computation.

Keywords:
Contractor ability planningContractor selectionIntegrated planningProject portfolio optimizationProject risk planning

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Area of Science:

  • Operations Research
  • Management Science
  • Mathematical Optimization

Background:

  • Project portfolio optimization and contractor selection are critical yet complex decisions.
  • Existing methods often treat these as separate problems, potentially leading to suboptimal outcomes.
  • Balancing multiple objectives like profit, risk, and technical capability under various constraints is challenging.

Purpose of the Study:

  • To develop and compare two distinct modeling approaches for integrated project portfolio optimization and contractor selection.
  • To evaluate the effectiveness of a simultaneous optimization model versus a sequential approach.
  • To analyze the computational performance and results of the proposed methods.

Main Methods:

  • Formulation of two mixed-integer mathematical programming models: one sequential and one integrated.
  • Application of goal programming (GP) to solve the multi-objective optimization problems.
  • Consideration of multiple objectives (profit, risk, capability, cost) and constraints (relationships, inflation, resources).
  • Validation through a practical case study and analysis of time complexity.

Main Results:

  • The integrated model (Scenario 2) demonstrated superior performance compared to the sequential model (Scenario 1).
  • Scenario 2 yielded better overall results in achieving project and contractor selection objectives.
  • The integrated approach exhibited significantly improved CPU time efficiency.

Conclusions:

  • Simultaneous optimization of project portfolio and contractor selection through an integrated model is more effective than sequential approaches.
  • Goal programming provides a robust framework for solving complex multi-objective optimization problems in this domain.
  • The integrated model offers a computationally efficient and practically superior solution for strategic project and contractor management.