Research On Divisible Project Portfolio Selection With The Sustainability Constraint

With the rapid development of the global market economy,the enterprises are facing the complex and fluctuating investment environment.Thus,it's crucial for enterprises to invest scarce resources into the most profitable projects in an effective way.Generally,in order to obtain more profits or achieve the strategic goal of the organization,decision makers usually need to execute several projects at the same time.How to select the most suitable project portfolio from many candidate projects under the condition of resource constraints has become an urgent problem that many enterprises need to solve.This type of problem is called Project Portfolio Selection Problem(PPSP).The project might be interrupted due to the limited resources,which is called"interruptible".Therefore,the study of interruptible portfolio selection problem appears.The interruptible portfolio selection model has been established,which takes into account such factors as income reinvestment,opportunity cost loss and capital constraint,etc.But a common feature of all these studies is that the modeling process assumes positive net cash flow at each time period.But in real life,the positive or negative of net cash flow in each period cannot be determined,Based on this,the negative net cash flow in each time period is considered for the first time in the study of interruptible portfolio selection.In the study of the problem of non-interruptible portfolio selection,the definition of the sustainability of non-interruptible portfolio is given by the number of positive and negative net cash flow.This paper extends this concept to the study of interruptible portfolio selection and gives a new definition of interruptible portfolio sustainability.The introduction to this definition makes the interrupted portfolio selection model have nonlinear characteristics,and this paper realizes the linear transformation of the nonlinear characteristic model,which is the theoretical contribution to this paper.Based on the definition of non-interruptible portfolio sustainability,this paper first considers the positive and negative times of net cash flow in the interruptible portfolio selection problem,and then gives the definition of the sustainability of interruptible portfolio selection problem.A new model of interruptible portfolio selection problem considering sustainability is constructed.In view of the nonlinearity of the new model,this paper gives the nonlinear equivalent representation and the theoretical proof.Finally,this paper employs the actual data of M enterprise to examine the divisible portfolio selection model and the traditional divisible portfolio selection model under the constraints of the sustainability by using GAMS/BARON,thus providing a comparative analysis of the results.The paper gets the following conclusions:1)Divisible project portfolio selection model considering sustainability can bring greater benefits to the enterprise in contrast with another model.2)Comparing the model considering sustainability and the model without considering sustainability,the conclusion can be drawn that the former model is larger than the latter in terms of opportunity cost.However,the optimal solution considering the objective function of the sustainability model is larger than the optimal solution without considering the objective function of the sustainability model.3)Finally,the sensitivity analysis of sustainability indicators shows that sustainability indicators have a positive impact on the optimal solution of the interruptible portfolio selection model,and the advantages of sustainability factors of enterprises in long-term projects will be more thoroughly reflected.