Portfolio Selection in electrical company based on the Analytic Network Process and Data Envelopment Analysis

Selecting the “best” project portfolio out of a given set of investment proposals is a common and often critical management issue. Decision-makers must regularly consider multiple objectives and often have little a priori preference information available to them. In this paper a new approach to prioritize project portfolio in an efficient and reliable way is presented. It is based on strategic objectives of the company and multicriteria decision methods. The method that is proposed here relies on the use of the analytical network process (ANP) and to help integrate managerial evaluations into a more quantitatively based decision tool, data envelopment analysis (DEA) is used. In this study, a portfolio selection procedure is presented to construct a desirable facility by using ANP and DEA approaches in two stages. In the first stage ANP model is used, results of this stage are inputs for the second stage. In this stage, DEA is applied to select best portfolio. The proposed method is applied on an electronic company. [Reza Sheikhrabori, Mohsen Akbarpoor Shirazi, Reza Jahanbin. Project Portfolio Selection in electrical company based on the Analytic Network Process and Data Envelopment Analysis. Researcher 2012;4(8):31-41]. (ISSN: 1553-9865). http://www.sciencepub.net/researcher. 7