| Article ID: | iaor201110678 |
| Volume: | 62 |
| Issue: | 10 |
| Start Page Number: | 3857 |
| End Page Number: | 3870 |
| Publication Date: | Nov 2011 |
| Journal: | Computers and Mathematics with Applications |
| Authors: | Kar Samarjit, Bhattacharyya Rupak, Kumar Pankaj |
| Keywords: | decision, research, stochastic processes, programming: multiple criteria, heuristics: genetic algorithms |
Global competition of markets has forced firms to invest in targeted R&D projects so that resources can be focused on successful outcomes. A number of options are encountered to select the most appropriate projects in an R&D project portfolio selection problem. The selection is complicated by many factors, such as uncertainty, interdependences between projects, risk and long lead time, that are difficult to measure. Our main concern is how to deal with the uncertainty and interdependences in project portfolio selection when evaluating or estimating future cash flows. This paper presents a fuzzy multi‐objective programming approach to facilitate decision making in the selection of R&D projects. Here, we present a fuzzy tri‐objective R&D portfolio selection problem which maximizes the outcome and minimizes the cost and risk involved in the problem under the constraints on resources, budget, interdependences, outcome, projects occurring only once, and discuss how our methodology can be used to make decision support tools for optimal R&D project selection in a corporate environment. A case study is provided to illustrate the proposed method where the solution is done by genetic algorithm (GA) as well as by multiple objective genetic algorithm (MOGA).