The Heuristic Procedure for Resource Constrained Proposal Project Portfolio Problem
Yoon Jae Cho, In Soub Paek, Jong Chool Kim, Tae ho Ahn · Journal of Korea Service Management Society · 2021
With regards to the various project to establish information system in the Korean software market, a company intending to win such project considers comprehensively the business detail, expected profits, and probability to win within available resources and comes to determine if to make an offer. Such judgement is one of the most important decision making affecting the overall business management like sales and revenue. Therefore, when the proposed project portfolio is defined as the composition of the project decided to be offered among the ordered projects, Cho, Yoon-Jae(2020) suggests a mathematical model of the problem of maximizing the sum of expected values in constituting the proposed project portfolio and an optimal solution accordingly. This paper assumes the concept of a project mode to be following: 1) the resources are limited, 2) a linear progression of the probability of the orders to be awarded as the duration of each activity increases, 3) the nature of the proposed project is reflected. Unlike previous studies, this research proposes a heuristic technique as a solution to the composition of the proposed project portfolio. The simulation in this study verifies the effectiveness and efficiency of the proposed algorithm as well.