Research On Multi-phase Mixed Project Portfolio Selection

With the rapid development of society and economy, enterprises is stepping into an period with more project choices. In these projects, how to select a project portfolio that is feasible and supports the enterprises’ strategy becomes the most important issue. During the research on the existing project portfolio selection theories, we found that some of the project selection methods are in favor of ensuring the consistency of projects and business strategy, and the others tend to select those projects within enterprises’capacity to make sure that the chosen projects can be implemented successfully. Both of them have their advantages, but all fail to fully solve the problems mentioned above faced by enterprises. On the grounds of this fact the in-depth analysis on the characteristics of corporate strategy and projects and the relationship between them, this paper integrated the above two project selection methods, building a more systematic scientific mixed project portfolio selection decision scheme.The main content of this paper consists of five parts:The first part describes the background and significance of this paper and introduces the relevant literature and the basic idea of this paper; the second part analyzes the types of corporate strategy and projects and the relations between them, establishing the concept and features of mixed portfolio projects. In addition to this, combined with the analysis and summary of the existing project portfolio selection methods, this paper presented a mixed portfolio selection decision scheme; the third part is about the preparation for portfolio project selection, matching mixed portfolio project by the type of the enterprise strategy and evaluating the strategic conformity degree of development projects to ensure that the projects for selection are in line with the enterprise strategy in both "quantity" and "quality"; the fourth part, after the preparation of the projects, centered on the relations of different project type within the portfolio project, accordingly establishes mathematical programming model for the mixed portfolio project of each type; finally, using GAMS to solve an numerical example, the analysis of the results shows the scheme for portfolio project selection scientific and feasible.The innovation of this project lies in the reasonable restructuring of the process of the portfolio project selection, dividing it into two different but related parts. The first one determines types of projects by the enterprise strategic choice to complete the preparation of projects for selection; within the prepared projects, the second one proceeds to select and schedule the projects under the conditions of the enterprise resource conditions to come out an optimal project portfolio. The design of this portfolio project selection decision scheme successfully solved the problem that the project portfolio selection couldn’t balance the requirements of satisfying corporate strategy and constraints of project implementation, providing a new rational decision-making perspective for portfolio project selection.