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Project portfolio designing using data envelopment analysis and De Novo optimisation

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  • Petr Fiala

    (University of Economics)

Abstract

In a rapidly evolving economic world, projects become tools to support organization goals. Project portfolio is set of all projects that are implemented in the organisation at a time. Possible projects are characterized by sets of inputs and outputs, where inputs are resources for project realisation and outputs measure multiple goals of the organisation. The data envelopment analysis (DEA) is an appropriate approach to select efficient projects. The organisation has its total resources in limited quantities. Designing a portfolio of efficient projects not exceeding the limited resources does not always lead to the most efficient portfolio. De Novo optimisation is an approach for designing optimal systems by reshaping the feasible set. The paper proposes a new approach for project portfolio designing based on a systemic combination of DEA model and De Novo optimisation approach. A total available budget is a restriction on project portfolio. The proposed concept provides designing of optimal project portfolio with the minimal budget. Performance measures of the designed project portfolio are the efficiency of the portfolio and the effectiveness of outputs. Possible extensions of the concept are formulated and discussed.

Suggested Citation

  • Petr Fiala, 2018. "Project portfolio designing using data envelopment analysis and De Novo optimisation," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 847-859, December.
    • Handle: RePEc:spr:cejnor:v:26:y:2018:i:4:d:10.1007_s10100-018-0571-6
    DOI: 10.1007/s10100-018-0571-6
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    References listed on IDEAS

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    Cited by:

    1. Gabriel Villa & Sebastián Lozano & Sandra Redondo, 2021. "Data Envelopment Analysis Approach to Energy-Saving Projects Selection in an Energy Service Company," Mathematics, MDPI, vol. 9(2), pages 1-15, January.
    2. Josef Jablonský & Ali Emrouznejad & Mehdi Toloo, 2018. "Editorial: Special issue on data envelopment analysis," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 26(4), pages 809-812, December.
    3. Maciej Nowak & Tadeusz Trzaskalik, 2022. "A trade-off multiobjective dynamic programming procedure and its application to project portfolio selection," Annals of Operations Research, Springer, vol. 311(2), pages 1155-1181, April.

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