Abstract
To solve the R and D portfolio selection under uncertainty, fuzzy set theory is applied to deal with project's uncertainty parameters. A multi-objective mathematical model is constructed, which simultaneously optimizes benefit with fuzzy real option, risk with fuzzy entropy, and cost with fuzzy net present value. A crisp transformation is implemented with the fuzzy model based on qualitative possibility theory and an improved multi-objective Pareto genetic algorithm is presented. Finally, a simulation experiment is carried out to illustrate that the proposed method could solve multi-objective R and D portfolio selection effectively.
| Original language | English |
|---|---|
| Pages (from-to) | 98-104 |
| Number of pages | 7 |
| Journal | Xitong Gongcheng Lilun yu Shijian/System Engineering Theory and Practice |
| Volume | 28 |
| Issue number | 2 |
| State | Published - Feb 2008 |
Keywords
- Fuzzy entropy
- Fuzzy real option
- Genetic algorithm
- Multi-objective optimization
- R and D portfolio
- Uncertainty