Project Portfolio Selection Using Multi-Criteria Decision Methods

Abstract

This article addresses the challenge of project portfolio selection. Due to the scarcity of resources in companies, decision makers need to select a subset of projects to be executed, from a list of projects to be developed. The return and risk assessment methods, widely disseminated in the literature, lead to a list of efficient portfolios, but it does not indicate exactly which one should be executed. With the application of three different multi-criteria selection methods (MCDM) - TOPSIS, VIKOR and PROMEHTEE II, combined with a return risk evaluation method (Mean-Gini), this work proposes a way to indicate the best portfolio of projects to be executed.