A fuzzy approach to R&D project portfolio selection

Christer Carlsson, Fúller Robert, Markku Heikkilä, Majlender Péter

Tutkimustuotos: LehtiartikkeliArtikkeliTieteellinenvertaisarvioitu

167 Sitaatiot (Scopus)

Abstrakti

A major advance in the development of project selection tools came with the application of options reasoning in the field of Research and Development (R&D). The options approach to project evaluation seeks to correct the deficiencies of traditional methods of valuation through the recognition that managerial flexibility can bring significant value to projects. Our main concern is how to deal with non-statistical imprecision we encounter when judging or estimating future cash flows. In this paper, we develop a methodology for valuing options on R&D projects, when future cash flows are estimated by trapezoidal fuzzy numbers. In particular, we present a fuzzy mixed integer programming model for the R&D optimal portfolio selection problem, and discuss how our methodology can be used to build decision support tools for optimal R&D project selection in a corporate environment.

AlkuperäiskieliEi tiedossa
Sivut93–105
JulkaisuInternational Journal of Approximate Reasoning
Vuosikerta44
Numero2
DOI - pysyväislinkit
TilaJulkaistu - 2007
OKM-julkaisutyyppiA1 Julkaistu artikkeli, soviteltu

Keywords

  • Real option valuation
  • Fuzzy numbers

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