Project Portfolio Optimization with Considering Interaction between Projects Using Imperialist Competitive Algorithm (ICA)

Document Type : Research Paper

Authors

1 Associate Prof., Faculty of Economic and Political Sciences, Shahid Beheshti University, Tehran, Iran

2 Ph.D. Student in Industrial Management, Tehran University, Tehran, Iran

3 MSc. Student in Industrial Management, Shahid Beheshti University, Tehran, Iran

4 MSc. Student in MBA, Sharif University of Technology, Tehran, Iran

Abstract

Due to Project evaluation complexity and resource constraints, the project portfolio optimization is numerous decision making challenges. Hence, many researches have been done to introduce model and methods for portfolio optimization. But most of them have not considered the interaction between projects. Considering the interactions between projects increase complexity of portfolio optimization problem and if these interactions be ignored, the efficiency of decision making process and final portfolio utility maybe influenced dramatically. In this paper, the portfolio optimization problem with considering interactions between the projects is formulated. Then, The portfolio optimization problem with regard the interactions between projects using ICA optimization algorithm was investigated. Interactions at the projects optimization, final solution and its fitness show the important effects. It was shown ICA method is better in comparison with the GA, the PSO and CPSO algorithm technique used before in such problems.

Keywords

References

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Industrial Management Journal
Volume 5, Issue 1
April 2013
Pages 1-20

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