On the Use of Simulation-Optimization in Sustainability Aware Project Portfolio Management

Miguel Saiz, Marisa Andrea Lostumbo, Angel A. Juan, David Lopez-Lopez

Research output: Book chapterConference contributionpeer-review

Abstract

Among other variables, uncertainty and limitation of resources make real-life project portfolio management a complex activity. Simulation-optimization is considered an appropriate technique to face stochastic problems like this one. The main objective of this paper is to develop a hybrid model, which combines optimization with Monte Carlo simulation, to deal with stochastic project portfolio management. A series of computational experiments illustrate how these hybrid approach can include uncertainty into the model, and how this is an essential contribution for informed decision making. A relevant novelty is the inclusion of a sustainability dimension, which allows managers to select and prioritize projects not only based on their monetary profitability but also taking into account the associated environmental and/or social impact. This additional criterion can be necessary when evaluating projects in areas such as civil engineering, building and construction, or urban transformation.

Original languageEnglish
Title of host publicationProceedings of the 2020 Winter Simulation Conference, WSC 2020
EditorsK.-H. Bae, B. Feng, S. Kim, S. Lazarova-Molnar, Z. Zheng, T. Roeder, R. Thiesing
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages2493-2504
Number of pages12
ISBN (Electronic)9781728194998
DOIs
Publication statusPublished - 14 Dec 2020
EventWinter Simulation Conference (WSC 2020): On the use of simulation-optimization in sustainability aware project portfolio management - Phoenix, United States
Duration: 14 Dec 202018 Dec 2020

Publication series

NameProceedings - Winter Simulation Conference
Volume2020-December
ISSN (Print)0891-7736

Conference

ConferenceWinter Simulation Conference (WSC 2020)
Country/TerritoryUnited States
CityPhoenix
Period14/12/2018/12/20

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