Research On Development Of Optimization Approach For Sustainability Modeling In Project Selection

In this thesis optimization approach is presented for measuring sustainability in investment project selection.The offered approach creates win-win situation to prevent environmental damages whereas attain positive sustainability trade-offs and assists on efficient budget allocation through reinvestment strategy.Similarly,the proposed multidimensional optimization model in the study provides an inclusive guidance for investors to obtain maximum expected income and maintain competitiveness.The concise explanation of the research framework with applied methods and findings is explained in the following three syntheses:(1)A novel optimization approach is presented to model sustainability in project selection problem(SPSP).For estimating sustainability in pr oject selection decision stage,quantitative sustainability measure is incorporated.Sustainability cost is considered in cash inflow stage of the traditional project selection concept,and in the meantime reinvestment strategy during the investment operation of the projects is taken into account in the model.Expected net present value(NPV)is employed to calculate the return of the project investment.A case study is presented to illustrate the applicability of the proposed method and the impact of sustainability measure with reinvestment strategy in project selection decision-making processes.Based on demonstrated optimization results,some significant observations have been found:(a)range of sustainability cost significantly influences investors' objective value and optimal project selection decision.Investors' project selection decision and maximum objective value is obtained at 3%sustainability cost;(b)compared to traditional project selection practices,sustainability cost implication can maximize investors' net profit value;(c)objective value varies with different reinvestment strategies and it is more sensitive with total reinvestment strategy than with partial reinvestment strategy;(d)appropriate use of reinvestment strategy ensures efficient budget allocation among the projects for the effective implementation of project investment without exceeding investors',available capital even when additional 3%cost on sustainability is employed.The results verify the proposed methodology.(2)To overcome the shortcomings of studies in the area of sustainability in project selection,corporate sustainability driver optimization model is proposed.Sustainability cost trade-off measurements is incorporated to the traditional project selection methods.The author argues that firstly,the calculation of sustainability cost in traditional project selection creates positive investment return.Secondly,sustainability incorporations in traditional project selection method create positive trade-off results both for the environment and inclusive sustainable investment.Further implication of sustainability cost to the traditional project selection concept is performed,subject to a set of constraints.Case study of the investment banking is illustrated to verify the applicability of the developed model in real project selection decision-making process.Overall results demonstrated that sustainable net present value estimations(SNPV)in contrast to traditional net present value(TNPV)method establishes a positive trade-off thus proving the effectiveness of the proposed model.(3)In line with the literature gap on quantitative sustainability measurement approach,new framework that integrates qualitative and quantitative criteria is proposed for better decision-making.Based on triple bottom line(TBL)and life cycle cost analyzing(LCCA)concepts,life cycle sustainability cost(LCSC)is identified.This financial assessment identifies important quantitative criteria on decision stages for project selection.As a primary goal of this study,through evaluating economic dimension,the research seeks to enhance long-term environmental and social dimension of sustainability.Consequently,proposed framework integrates economic and environmental dimension as the leading point to heighten social criteria and wellbeing of future generations.It increases competitiveness of the company and facilitates its sustainable development.