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Advances in Operations Research
Volume 2014, Article ID 954219, 8 pages
http://dx.doi.org/10.1155/2014/954219
Research Article

A Hybrid Grey Relational Analysis and Nondominated Sorting Genetic Algorithm-II for Project Portfolio Selection

Department of Industrial Management, Islamic Azad University, Semnan Branch, Semnan, Iran

Received 27 June 2014; Revised 24 November 2014; Accepted 30 November 2014; Published 24 December 2014

Academic Editor: Konstantina Skouri

Copyright © 2014 Farshad Faezy Razi. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Project selection and formation of an optimal portfolio of selected projects are among the main challenges of project management. For this purpose, several factors and indicators are simultaneously examined considering the terms and conditions of the decision problem. Obviously, both qualitative and quantitative factors may influence the formation of a portfolio of projects. In this study, the projects were first ranked using grey relational analysis to form an optimal portfolio of projects and to create an expert system for the final project selection. Because of the fuzzy nature of the environmental risk of each project, the environmental risk was predicted and analyzed using the fuzzy inference system and failure mode and effect analysis based on fuzzy rules. Then, the rank and risk of each project were optimized using a two-objective zero-one mathematical programming model considering the practical constraints of the decision problem through the nondominated sorting genetic algorithm-II (NSGA-II). A case study was used to discuss the practical methodology for selecting a portfolio of projects.