A fuzzy two-stage project portfolio selection model addressing financial and non-financial factors

Trade-off between financial and non-financial factors is crucial for project portfolio selection. In this paper, a two-stage project portfolio selection model, which addresses these two factors, is proposed. In the proposed two-stage model, the return and cost of projects are characterized by triangular fuzzy number. In the first stage, a score model, focusing on the non-financial aspects, uses the Go-Kill threshold value to determine whether a project can be further appraised in the next stage. In the second stage, a fuzzy programming model, addressing the financial aspects, is used to select the optimal combinations from the go-projects of the first stage. Finally, a numerical example is given to demonstrate the effectiveness and applicability of the proposed model.