Applying utility theory in uncertain project environments with multiple goals

Mojtaba Safari, Morteza Bagherpour, John Wang

Research output: Contribution to journalArticle

1 Scopus citations

Abstract

In project environments, normally, multiple conflicting goals are being incorporated for decision making which associated with uncertain and incomplete information. The main purpose of the project management process is to minimise total project cost and completion time simultaneously; however these affecting factors in project management are conflicting objectives and those have to be efficiently compromised. Going through literature indicated utility theory has not been previously applied in project management environment while deeply incorporated through economics sciences. This study applies the utility theory through solving cost and time trade-off problems in uncertain environments. Here, considering decision maker's (DM) preferences, cost and time utility functions are then determined. Further, the overall utility function has to be optimised. Since the proposed function appropriately assessed, the best decision is being made and maximum satisfaction for DM is reached.

Original languageEnglish
Pages (from-to)196-211
Number of pages16
JournalInternational Journal of Applied Decision Sciences
Volume9
Issue number2
DOIs
Publication statusPublished - 1 Jan 2016

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Keywords

  • Cost-time trade-off
  • Earned value
  • Multi objective decision making
  • Project management
  • Utility theory

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