A Lexicographic approach for selecting R&D projects with resource constraints

Selection of proper R&D projects is a crucial management decision making problem in the fast changing market environment. Normally an organization has only limited resources for its R&D projects and has to find a rational combination of the most important R&D projects and not to violate the resource constraints as the same time, suppose the organization does not plan to increase its resource capacities in the short term. In this case the decision maker should pay attention to the priority of feasible project portfolios instead of the priority of individual projects. A lexicographic ordering method is suitable for this purpose. A mathematical model is established in This work to find out the feasible project portfolios, then the lexicographic ordering method could be adopted to prioritize the feasible portfolios and to identify the best portfolio eventually.