Bid-winning potential optimization for concession schemes with imprecise investment parameters
Author(s)
Islam, Md Mainul
Mohamed, Sherif
Griffith University Author(s)
Year published
2009
Metadata
Show full item recordAbstract
This paper portrays the development of a concession-investment optimization model for optimizing the winning potential of a concession-bid from the prospective promoters' viewpoints by taking into account imprecise investment parameters. A financial performance measure has been developed to quantify bid-winning potential. Fuzzy set theory is embedded into a genetic algorithm to optimize bid-winning prospects of concession schemes under uncertainty. The fuzzy vertex method accomplishes propagation of uncertainty in cash flows arising from imprecision in estimation of investment parameters. Genetic algorithm solves the ...
View more >This paper portrays the development of a concession-investment optimization model for optimizing the winning potential of a concession-bid from the prospective promoters' viewpoints by taking into account imprecise investment parameters. A financial performance measure has been developed to quantify bid-winning potential. Fuzzy set theory is embedded into a genetic algorithm to optimize bid-winning prospects of concession schemes under uncertainty. The fuzzy vertex method accomplishes propagation of uncertainty in cash flows arising from imprecision in estimation of investment parameters. Genetic algorithm solves the optimization routine. The developed model yields global near-optimal solution of bid-winning potential with contributing values of concessionary items: concession length, base price, and equity level under uncertain investment environment. A numerical example demonstrates model capabilities. The model results would help promoters devise a profitable, yet competitive, financial proposal.
View less >
View more >This paper portrays the development of a concession-investment optimization model for optimizing the winning potential of a concession-bid from the prospective promoters' viewpoints by taking into account imprecise investment parameters. A financial performance measure has been developed to quantify bid-winning potential. Fuzzy set theory is embedded into a genetic algorithm to optimize bid-winning prospects of concession schemes under uncertainty. The fuzzy vertex method accomplishes propagation of uncertainty in cash flows arising from imprecision in estimation of investment parameters. Genetic algorithm solves the optimization routine. The developed model yields global near-optimal solution of bid-winning potential with contributing values of concessionary items: concession length, base price, and equity level under uncertain investment environment. A numerical example demonstrates model capabilities. The model results would help promoters devise a profitable, yet competitive, financial proposal.
View less >
Journal Title
Journal of Construction Engineering and Management
Volume
135
Issue
8
Subject
Civil engineering
Building
Commercial services