A goal programming capital budgeting model under uncertainty in construction industry

Due to the increase of investments in construction projects and the lack of practical models in this area, developing new practical models is essential. In this paper, researchers suggest a new model in which (1) Its assumptions are adopted based on the real world, (2) Goal programming is used because of the soft nature of the budget constraints, and (3) Risk of variations in cash ows is considered. The presented model chooses the most protable portfolio of projects and determines their respective nancing resources, area under construction, and pre-sale and sale amounts for each period, such that the cumulative cash ow at the end of the time horizon is maximized. The Fuzzy Analytic Hierarchy Process (FAHP) is used to determine the weight of the objectives. The exact solution to the model is obtained using the ILOG CPLEX software. The presented solution seems ecient since it yields very small elapsed times to solve exactly the real-world-sized problems. Also, the sensitivity analysis is performed and the results are deliberately studied and analyzed. Parameters, such as pre-sale prices, mean, and variance of the sale price and construction costs, are among the highly sensitive parameters.