Optimizing Resource Allocation in a Portfolio of Projects Related to Technology Infusion Using Heuristic and Meta-Heuristic Methods

This paper proposes a method to address the planning and scheduling required to infuse technologies into a portfolio of product development projects. Definitive selection of technologies for infusion cannot be applied without taking into account available resources, time required to mature technologies and the interactions among them. Portfolio selection and the scheduling process have often been treated separately although they are interdependent. This research aims to bridge the gap between portfolio scheduling and technology infusion by considering both with realistic performance dynamics, in which the iterative nature of activities is included in the model. Given these improvements, methods for effectively allocating resources in a portfolio of projects related to technology infusion are recommended. Initially, a heuristic method is proposed based on priority rules. However, as the assumptions of the model are loosened a novel method is suggested that combines Genetic Algorithm (GA) and Artificial Bee Colony (ABC) approaches. Numerical results indicate that the hybrid meta-heuristic method based on GA-ABC is effective in finding good resource allocations while considering rework. At the same time, results confirm that rework can dramatically affect the projects that comprise the portfolio and therefore rework should be included in these analyses.