Expanded model of the project portfolio selection problem with divisibility, time profile factors and cardinality constraints

Abstract

This paper develops a new model for project portfolio selection over a planning horizon with multiple time periods. The model considers the divisibility of projects and combines reinvestment, set-up cost, cardinality constraints and precedence relationship in the scheduling, simultaneously. For efficient computation, an equivalent mixed integer linear programming representation is provided. One numerical example with three scenarios is given to highlight the capability and characteristics of the proposed model.

Keywords:

• project portfolio selection problem
• multiple time periods
• divisibility
• time profile factors
• set-up cost
• cardinality constraints

Acknowledgements

Li’s research has been supported by the China National Science Foundation #71171079 and #61105127. Fang’s research has been supported by the US National Science Foundation Grant #DMI-0553310.