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A Mahalanobis distance-based approach to constrained project assignment among multiple allocation options

Author

Listed:
  • Abdulaziz Saud Alkabaa
  • Alberto Garcia-Diaz

Abstract

This paper develops an analytical approach for selecting projects that are most attractive for development from an economic point of view and assigning them to one of several implementation options. These options represent alternative ways to develop projects, such as private contractors and an in-house group. A relevant limiting resource in addition to the availability of funds is the in-house manpower availability. The concept of Mahalanobis distance (MD) is used as the classification criterion to select the most appropriate option for any project. The allocation methodology is formulated using two binary integer programming models. The first formulation maximises the dollar value of benefits derived from those projects being implemented subject to budget, total-sum of projects MDs, and in-house manpower constraints. The second formulation minimises the total-sum of project MDs subject to budget and in-house manpower constraints. For illustration purposes, the proposed approach is used in an application involving seal coat.

Suggested Citation

  • Abdulaziz Saud Alkabaa & Alberto Garcia-Diaz, 2018. "A Mahalanobis distance-based approach to constrained project assignment among multiple allocation options," International Journal of Project Organisation and Management, Inderscience Enterprises Ltd, vol. 10(2), pages 158-174.
    • Handle: RePEc:ids:ijpoma:v:10:y:2018:i:2:p:158-174
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