Research On Bi-objective Project Portfolio Selection Model With Interruption And Resource Constraints

With the development of economic globalization, enterprise competition is getting more and more intensify. The capital owned by entrepreneurs, the project engaged by enterprise become more, which lead to entrepreneurs having more choices. The entrepreneurs are extremely concerned about how to choose the projects which can bring more benefits and meet the enterprise development strategy from candidate projects. Meanwhile, the above problem is the main study in project portfolio selection problem. Through the analysis of project portfolio selection problem, we find that projects need a lot of resources, but resources are limited, so how to create more benefits in the limited resources becomes our critical point. It is noticed that if the projects can be interrupted, enterprises maybe get more benefits. Therefore, the study on project portfolio selection problem with resource constraints and interruption becomes very important. It has the theoretical and realistic significance for the long term.Aimed at the shortage of the existing project portfolio selection model, firstly, we constructed a new project portfolio selection model, in which the present value of capital resource constraints in the model is provided; secondly, the project portfolio selection problem influenced by project interruption and resource constraints is analyzed, and then the problem influenced by renewable resources and nonrenewable resources is also considered. Based on the above model, we further studied the project portfolio selection model and found that decision makers aren’t satisfied with the earnings target, so we unified project risk and feasibility as utility, and then regarded utility as the other objective of project portfolio selection model. In order to provide a more reasonable model for decision makes to select project portfolio, we built bi-objective project portfolio selection model with resource constraints and interruption.Finally, taking company A as an example to highlight the model. The result shows that three problems:(1) If the project can be interrupted, the resource constraints can affect the constitution of project portfolio, project execution time and net present value. When the maximum of project execution rate is greater than or equal to 50%, the net present value of project portfolio can increase. (2) The renewable resource constraints of resource constraints have great influence on project portfolio selection problem with interruption, and nonrenewable resource constraints have no positive impact on project portfolio selection problem with interruption. When interruption is considered in the project portfolio selection problem, the net present value of project portfolio decreased with nonrenewable resource constraints. (3) The bi-objective model makes decision makers consider net present value、project risk and project feasibility at the same time, so decision makers can choose the project portfolio which meet the development strategy. Therefore, the study of project portfolio selection model with resource constraints and interruption is important.