FRAMEWORK FOR IMPLEMENTATION PROJECT PORTFOLIO SELECTION DECISION IN SHIPPING COMPANY

Project portfolio selection is an activity to select proposal of projects either for a new project or project underway in order to accomplish the organization’s objective without taking the existing restrictions. This paper focuses on the decision making process for project proposal selection currently applied by Shipping Company. First step is to identify the criterion used by the management team for project selection. Next step is to evaluate projects by means of scoring model. Further step is to do risk and financial analysis by using financial model and Monte Carlo simulation. Then, for selecting optimum portfolio, method 0-1 integer linear programming is used. Analysis result of this paper shows that the optimum evaluation steps taken in selecting a project portfolio are the decision to select project B and project C.