Constrained Optimization Methods of Project Selection – An Overview

One of the types methods you use to select a project is Benefit Measurement Methods of Project Selection. In these methods, you calculate or estimate the benefits you expect from the projects and then depending on the highest benefits, you select a project. However, these methods are more suitable to select projects that are simple and easy to calculate benefits from such projects. In big organizations, where projects are of complicated and are of a large scale, these methods might not be appropriate to select a project.

Considering the magnitude of the project, the organization has a lot on stake. Therefore, you cannot take chances to select a project based on just judgments or simple calculation. Such projects need complicated mathematical calculation before you decide on considering a project. For large and complicated projects, you can use constrained optimization methods to select a project.

In a constrained optimization method, you make complex mathematical calculations to select a project. These mathematical calculations are based on various best and worst case scenarios, and probability of the project outcome. Depending on the outcome of these calculations, you compare the candidate projects and the select a project with the best outcome.

You can use any of the following constrained optimization methods to select a project: