PROJECT PORTFOLIO DECISION POLICY ALIGNED WITH ORGANIZATIONAL OBJECTIVES

A Markov Decision Process based decision model is proposed in this paper for computation of optimal decision policy for the project portfolios. As projects are one time activity, often sufficient past data is not available for estimation of the input values required for the decision model. This model requires two matrices the state transition matrix and rewards matrix as input. In this paper, Analytic Hierarchy Process is used for estimation of these input matrices through the use of collective wisdom of decision makers. Markov Decision Process is used for computation of the optimal policy. The developed model is applied on a case study.