A new model of project portfolio selection under IVF-environment with application in investment firms

Selecting the right set of projects is an essential part of holdings and investment companies’ activities. Companies in order to survive today’s competitive and changing environment need reliable methods for the selection of projects and project portfolio. In this paper, a new project portfolio selection model is introduced to select the optimal portfolio of investment projects under interval-valued fuzzy environment. This model proposes a novel approach to consider risk and return in project selection. A new project selection index based on net present value and lower semi-variance is introduced. Moreover, applying interval-valued fuzzy sets (IVFSs) gives the model more flexibility in expressing and calculating the uncertainty of the problem. For the purpose of illustration, an illustrative example is presented and solved with the introduced model. The results show the reliability of the proposed model in addition to illustrate its application in real world situation problems.

Keywords:

Project portfolio selection , investment projects , interval-valued fuzzy sets , lower semi-variance