Solving a novel multi-divisional project portfolio selection and scheduling problem

Abstract

A common problem faced by organizations is how to select and schedule an optimal portfolio of projects subject to various constraints, such as a limited budget. This problem is known as the project portfolio selection and scheduling problem (PPSSP). Despite the widespread nature of this problem, no existing model adequately addresses a sufficient set of characteristics that arise in real-world problems. One contribution of this article is the proposal of a novel, practical class of PPSSP that consists of multiple groups of projects, proposed by different sections of a major organization. The proposed problem can be considered as a generalized PPSSP given that many specific PPSSPs reported in the literature can be generated by relaxing certain constraints. As this is a novel formulation, existing algorithms cannot ensure high-quality solutions to this problem. Thus, a further contribution of this article is the design of three hybrid meta-heuristic algorithms based on a custom-purpose heuristic and local search operator. A case problem, inspired by future force design (FFD) in the Australian Defence Force (ADF), is presented to exemplify the applicability of this model to a real-world problem. Results indicate that the obtained solutions are of acceptable quality for implementation.