Balancing construction projects by considering resilience factors in crisis

Document Type : Research Paper


1 School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

2 Department of Industrial Engineering, Shahed University, Tehran, Iran


Macroeconomic investment at the corporate level has grown rapidly in recent years. Given that the resources of the organization are usually less than the number of projects ahead in the organization, selecting projects from a portfolio of projects and making decisions in this regard is inevitable in the organization. Choosing the wrong one will have many negative consequences, including wasting resources in the organization. It also destroys resources within the organization that, if used correctly in a more appropriate project, will have benefits for the organization. In recent years, due to some problems, the country's economic markets have fluctuated. These fluctuations are largely unpredictable in nature, which have a significant negative impact on economic and investment organizations. Given this need, the current research is attempting to provide a solution to best balance project portfolio in uncertain terms. Therefore, this paper has proposed a model for project balancing under uncertainty conditions considering resilience factors in crisis, as stated, to prevent some projects from continuing if necessary. 4 scenarios are defined and a stochastic programming is implemented. So far, the concept of project portfolio balancing and modeling has rarely been addressed. Most of the time, a financial portfolio is presented and a balancing model is provided for it, especially in the field of equity, or generally, taking into account indicators such as risk, prioritizing projects and providing a conceptual model to apply.


Boran, F. E., Genç, S., Kurt, M., & Akay, D. (2009). A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications36(8), 11363-11368.
Caron, F., Fumagalli, M., & Rigamonti, A. (2007). Engineering and contracting projects: A value at risk based approach to portfolio balancing. International journal of project management25(6), 569-578.
Das, S. R., Kaznachey, D., & Goyal, M. (2014). Computing optimal rebalance frequency for log-optimal portfolios. Quantitative Finance14(8), 1489-1502.
Dichtl, H., Drobetz, W., & Wambach, M. (2014). Where is the value added of rebalancing? A systematic comparison of alternative rebalancing strategies. Financial Markets and Portfolio Management28(3), 209-231.
Drenovak, M., & Ranković, V. (2014). Markowitz portfolio rebalancing with turnover monitoring. Ekonomski horizonti16(3), 211-223.
Dupin, N. (2018). Portfolio balancing strategy for the integration of renewable energy sources to the day ahead market.
Eilat, H., Golany, B., & Shtub, A. (2006). Constructing and evaluating balanced portfolios of R&D projects with interactions: A DEA based methodology. European journal of operational research172(3), 1018-1039.
Guo, Y., Wang, L., Li, S., Chen, Z., & Cheng, Y. (2018). Balancing strategic contributions and financial returns: a project portfolio selection model under uncertainty. Soft Computing22(16), 5547-5559.
Gupta, P., Mittal, G., & Mehlawat, M. K. (2013). Expected value multiobjective portfolio rebalancing model with fuzzy parameters. Insurance: Mathematics and Economics52(2), 190-203.
Hollnagel, E. (Ed.). (2013). Resilience engineering in practice: A guidebook. Ashgate Publishing, Ltd.
Hollnagel, E., Woods, D. D., & Leveson, N. (Eds.). (2006). Resilience engineering: Concepts and precepts. Ashgate Publishing, Ltd.
Horan, R. D., Fenichel, E. P., Finnoff, D., & Reeling, C. (2018). A Portfolio-Balancing Approach to Natural Capital and Liabilities: Managing Livestock and Wildlife Diseases with Cross-Species Transmission. Environmental and resource economics70(3), 673-689.
Iscoe, I., Kreinin, A., Mausser, H., & Romanko, O. (2012). Portfolio credit-risk optimization. Journal of Banking & Finance36(6), 1604-1615.
Kumar, P., Panda, G., & Gupta, U. C. (2015). Portfolio rebalancing model with transaction costs using interval optimization. Opsearch52(4), 827-860.
Mittal, G., & Mehlawat, M. K. (2014). A multiobjective portfolio rebalancing model incorporating transaction costs based on incremental discounts. Optimization63(10), 1595-1613.
Qin, Z., Kar, S., & Zheng, H. (2016). Uncertain portfolio adjusting model using semiabsolute deviation. Soft Computing20(2), 717-725.
Wang, M., Xu, F., & Wang, G. (2014). Sparse portfolio rebalancing model based on inverse optimization. Optimization Methods and Software29(2), 297-309.
Woodside-Oriakhi, M., Lucas, C., & Beasley, J. E. (2013). Portfolio rebalancing with an investment horizon and transaction costs. Omega41(2), 406-420.
Yu, J. R., & Lee, W. Y. (2011). Portfolio rebalancing model using multiple criteria. European Journal of Operational Research209(2), 166-175.