Author: Pin-Yu Chua, Yeh-Liang Hsu, Michael Fehling (1993-10-19);
recommended: Yeh-Liang Hsu (2004-12-15).
Note: This paper is published in Computers in Industry, Vol. 32,
No. 2, pp. 141-149, December 1996.
A Decision Support System for
Project Portfolio Selection
A decision support system (DSS) is developed to help managers select
the most appropriate sequences of plans for product research and development
(R&D) projects that have strict constraints on budget, time, and resources.
The primary objective of the DSS is to provide an optimal combination of
R&D projects. The DSS consists of several subsystems, each of which has a
specific function. At the core of the DSS are a cost model, which covers
time-cost tradeoff analysis, and a strategic selection algorithm, which, based
on dynamic programming, provides an optimal development plan for managing
R&D projects. A working board supports an interactive environment between
managers and the DSS. A data checking system eliminates inconsistent data and plans
in advance. This paper identifies key issues in the arrangement of R&D
projects and describes various systems that have been interlinked to make the
DSS a success. It also reveals that the DSS can be expanded to a decision
support system shell to support similar types of problems.
Author Keywords: Decision support
system; Research and development; Portfolio selection