A hybrid fuzzy MCDM approach for sustainable project portfolio selection problem and an application for a construction company

Abstract

Although the construction sector is an indispensable sector in meeting human needs, it also has negative environmental and social effects. The construction industry has environmental impacts due to its significant share in consuming scarce resources and big amount of greenhouse gas emissions to the atmosphere. It is also a labor force-intensive industry. Due to the intensity of the labor force, ignoring social concerns cause a negative social image. Consequently, taking sustainability into consideration for construction projects is of great importance in terms of solutions to social and environmental problems. Due to limited resources, it is not possible to implement every project for companies. The most suitable projects are preferred among alternative projects. The problem of project portfolio selection (PPS) is an important decision problem that companies frequently encounter. Many factors should be taken into consideration for selecting projects. In many studies in the literature, the problem of PPS is addressed only by considering economic criteria. In this study, the problem of PPS is addressed with sustainability consideration. Considering sustainability, environmental and social factors have also been taken into account besides economic factors. A hybrid fuzzy multi-criteria decision-making (FMCDM) approach has been used due to uncertainties in the decision process. In the hybrid approach, the methods of Fuzzy complex proportional assessment (F-COPRAS) and Fuzzy step-wise weight assessment ratio analysis (F-SWARA) are used together. An application is conducted for a construction company.