An efficient risk based multi objective project selection approach considering environmental issues

Manavizadeh, N.; Malek, S.; Vosoughi-Kia, R.; Farrokhi-Asl, H.

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Uncertain Supply Chain Management

ISSN 2291-6830 (Online) - ISSN 2291-6822 (Print) Quarterly Publication Volume 5 Issue 2 pp. 143-158 , 2017

An efficient risk based multi objective project selection approach considering environmental issues Pages 143-158 Download PDF

Authors: Neda Manavizadeh, Shadab Malek, Reza Vosoughi-Kia, Hamed Farrokhi-Asl

DOI: 10.5267/j.uscm.2016.10.001

Keywords: Project selection, Value at risk, Net Present Value, Environmental issues

Abstract: There are many researches on project selection field, but few of them have considered environmental criteria in their studies. Moreover, there are many articles in evaluating risk but there is no article that considers value at risk concept to evaluate the amount of risk in multi project selection. We propose a multi objective mathematical model to address a situation in which several projects are candidate to be invested completely or partially. Three objective functions are considered in this paper. The first objective maximizes sum of the net present value of pure cash flow obtained from selected projects. In this objective, we consider the factor of time and its impact on value of money. In addition, we use the concept of value at risk (VAR) as the present value for the first time in project selection problems. Although green projects are more interesting, there are few articles, which address environmental issues. Hence, we consider the objective, which are related to environmental issues as the final criterion. Multi-Objective Differential Evolution algorithm (MODE) algorithm is applied to solve a problem, which is known as robust and efficient algorithm. Then computational results are compared with solutions obtained by NSGA-II algorithm which is well-known algorithm in this field with respect to seven comparison metrics.

How to cite this paper

 Manavizadeh, N., Malek, S., Vosoughi-Kia, R & Farrokhi-Asl, H. (2017). An efficient risk based multi objective project selection approach considering environmental issues.Uncertain Supply Chain Management, 5(2), 143-158.

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