A Fuzzy Model for R&D Project Portfolio Selection

Due to Research and Development (R&D) budget constraints and limited resources, companies are often forced to select a suitable combination of projects to obtain the maximal profits. Therefore, the problem of selecting R&D projects is very significant. In this paper, we discuss the fuzzy project selection problem based on possibility theory. Following the ideas of the Markowitz´s mean-variance method, a fuzzy model for R&D project selection is proposed, in which the possibilistic mean value of the return is regarded as the project investment return, the possibilistic variance of the return is regarded as the project investment risk. This model is a 0-1 quadratic programming problem which can be solved by some existed methods or softwares. At last, a numerical example is given to illustrate our proposed model.