Sage Journals: Discover world-class research

Abstract

Project selection is a significant decision-making process in most companies. Most previous researches focused only on the investment profit and used random variables to determine project parameters. However, in some cases, the distributions of parameters cannot be obtained from similar projects due to the rapid changing environment. So experts’ estimations will be adopted. In order to handle inaccurate estimation, an uncertainty theory is applied to solve project selection decision-making in this situation. In addition, besides considering financial aspects, the non-financial aspects including compatibility, are taken into account. A new project selection model is developed and the deterministic form of the model is given. For the sake of illustration, an example has been presented. This paper aims at proposing a new project appraisal method comprehensively considering financial and non-financial aspects.

Keywords

Uncertain programming project selection sustainability compatibility

Get full access to this article

View all access options for this article.

References

Brigham

and Joel

, Fundamentals of Financial Management. Stanford: Thomson Learning, 2002.

Chen

and Ralescu

, A note on truth value in uncertain logic, Expert Systems with Applications 38 (2010), 15582–15586.

Danese

and Kalchschmidt

, The impact of forecasting on companies’ performance: Analysis in a multivariate setting, International Journal of Production Economics 133 (2011), 458–469.

, Acharya

and Sahu

, A chance-constrained goal programming model for capital budgeting, Journal of the Operational Research Society 33 (1982), 635–638.

Gao

, Shortest path problem with uncertainty arc lengths, Computers and Mathematics with Applications 62 (2011), 2591–2600.

Gemici-Ozkan

, Wu

, Linderoth

and Moorc

, R&D project portfolio analysis for the semiconductor industry, Operations Research 58 (2010), 1463–1548.

Gerry

, Exploring Corporate Strategy. Upper Saddle River: Prentice Hall Inc, 1993.

Huang

and Di

, Modeling uncapacitated facility location problem with uncertain customers’ positions, Journal of Intelligent & Fuzzy Systems 28 (2015), 2569–2577.

Huang

and Zhao

, Project selection and adjustment based on uncertain measure, Information Sciences 352-353 (2016), 1–14.

10.

Huang

, :, Portfolio Analysis: From Probabilistic to Credibilistic and Uncertain Approaches. Berlin: Springer-Verlag, 2010.

11.

Keown

and Martin

, A chance constrained goal programming model for working capital management, Engineering Economics 22 (1977), 153–174.

12.

Keown

and Taylor

, A chance-constrained integer goal programming model for capital budgeting in the production area, Journal of the Operational Research Society 31 (1980), 579–589.

13.

Liu

, :, Uncertainty Theory: A Branch of Mathematics for Modeling Human Uncertainty. Berlin: Springer-Verlag, 2010.

14.

Liu

, Uncertainty Theory. Berlin: Springer-Verlag, 2007.

15.

Oblak

, Helm

and Roy

, Survey and analysis of capital budgeting methods used by multinationals, Financial Management 9 (1972), 37–41.

16.

Qin

and Kar

, Single-period inventory problem under uncertain environment, Applied Mathematics and Computation 219 (2013), 9630–9638.

17.

Sherer

, IS Project Selection: The Role of Strategic Vision and IT Government, System Sciences, 2004.

18.

Zhang

, Huang

and Tang

, A mean-risk index model for uncertain capital budgeting, Journal of the Operational Research Society 66 (2015), 761–770.

19.

Zhang

, Huang

and Tang

, Optimal multinational capital budgeting under uncertainty, Computers and Mathematics with Applications 62 (2011), 4557–4567.

Uncertain project selection model considering sustainability and compatibility

Abstract

Keywords

Get full access to this article

References