A multiobjective model for the selection and timing of public enterprise projects

Andrés L. Medaglia, Darrell Hueth, Juan Carlos Mendieta, Jorge Sefair

Research output: Contribution to journalArticle

45 Citations (Scopus)

Abstract

In theory, a public utility company improves the quality of community life through its projects and actions. However, project selection and prioritization by these companies are highly complex processes. To assist company planning managers in such processes, we propose a mixed integer programming model that selects, from a bank of projects, which are worthy of investment. The question of timing is also addressed. The model maximizes a weighted sum of normalized economic and financial net present values and a social impact index. It simultaneously satisfies a set of precedence relations among projects, the earliest and latest project start dates, exogenous budget limits, and endogenous project cash flow generation. We illustrate the model's effectiveness using an example constructed from a case study of a major Latin American water and sewage company.

Original languageEnglish (US)
Pages (from-to)31-45
Number of pages15
JournalSocio-Economic Planning Sciences
Volume42
Issue number1
DOIs
StatePublished - Mar 2008
Externally publishedYes

Fingerprint

public enterprise
Timing
Net Present Value
Prioritization
Mixed Integer Programming
Weighted Sums
Date
Programming Model
Maximise
Planning
Economics
Water
Model
public utilities
sewage
prioritization
social impact
social effects
project
public

Keywords

  • Mixed integer programming
  • Multicriteria decision-making
  • Project selection
  • Public investment decisions
  • Public sector decision-making

ASJC Scopus subject areas

  • Strategy and Management
  • Management Science and Operations Research
  • Statistics, Probability and Uncertainty
  • Economics and Econometrics

Cite this

A multiobjective model for the selection and timing of public enterprise projects. / Medaglia, Andrés L.; Hueth, Darrell; Mendieta, Juan Carlos; Sefair, Jorge.

In: Socio-Economic Planning Sciences, Vol. 42, No. 1, 03.2008, p. 31-45.

Research output: Contribution to journalArticle

Medaglia, Andrés L. ; Hueth, Darrell ; Mendieta, Juan Carlos ; Sefair, Jorge. / A multiobjective model for the selection and timing of public enterprise projects. In: Socio-Economic Planning Sciences. 2008 ; Vol. 42, No. 1. pp. 31-45.
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