Portfolio Selection Challenges in Defense Applications

Abstract

Throughout the federal government, decision makers at multiple levels face the problem of choosing a portfolio of investments (e.g., projects, activities, or programs) to fund, given current and projected budget restrictions. In the Department of Defense in particular, a number of factors complicate investment choices. These factors include long time horizons, program interactions, multiple objectives, significant uncertainty in both project costs and project outcomes, multiple stakeholders, and large numbers of alternative investments. We propose a unified formal approach to defense portfolio investment analysis, and challenge the Decision Analysis community to devise methodologies and develop tools needed to implement this framework.

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Document Details

Document Type
Technical Report
Publication Date
Aug 01, 2017
Accession Number
AD1123280

Entities

People

  • David M. Tate
  • Paul M. Thompson

Organizations

  • Institute for Defense Analyses

Tags

Communities of Interest

  • Biomedical
  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Accounting
  • Acquisition
  • Algorithms
  • Business Administration
  • Computer Programs
  • Contracts
  • Defense Planning
  • Department Of Defense
  • Dynamic Programming
  • Finance
  • Governments
  • Heuristic Methods
  • Investments
  • Literature Surveys
  • Mathematical Programming
  • Mathematics
  • Monte Carlo Method
  • National Governments
  • National Security
  • Operations Research
  • Optimization
  • Probability
  • Random Variables
  • Security

Readers

  • Economics
  • Enterprise Information Systems Architecture and Joint Command Capability Interoperability Support.
  • Operations Research