Journal
OMEGA-INTERNATIONAL JOURNAL OF MANAGEMENT SCIENCE
Volume 35, Issue 3, Pages 247-257Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.omega.2005.06.002
Keywords
management of science/technology; portfolio selection; project management; fuzzy sets; optimization
Ask authors/readers for more resources
Making R&D portfolio decision is difficult, because long lead times of R&D and market and technology dynamics lead to unavailable and unreliable collected data for portfolio management. The objective of this research is to develop a fuzzy R&D portfolio selection model to hedge against the R&D uncertainty. Fuzzy set theory is applied to model uncertain and flexible project information. Since traditional project valuation methods often underestimate the risky project, a fuzzy compoundoptions model is used to evaluate the value of each R&D project. The R&D portfolio selection problem is formulated as a fuzzy zero-one integer programming model that can handle both uncertain and flexible parameters to determine the optimal project portfolio. A new transformation method based on qualitative possibility theory is developed to convert the fuzzy portfolio selection model into a crisp mathematical model from the risk-averse perspective. The transformed model can be solved by an optimization technique. An example is used to illustrate the proposed approach. We conclude that the proposed approach can assist decision makers i
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available