Issue: 2017/Vol.27/No.2, Pages 77-90
MODIFIED OPTIMIZATION MODEL FOR SELECTING PROJECT RISK RESPONSE STRATEGIES
Cite as: E. Marchwicka, D. Kuchta. Modified optimization model for selecting project risk response strategies. Operations Research and Decisions 2017: 27(2), 77-90. DOI 10.5277/ord170205
The authors present modifications of the optimization model for selecting project risk response strategies proposed by Zhang and Fan. The weaknesses of the original model has been identified and an improved model with the main suggestions has been proposed. The main improvement concerned the objective function. The modified model was tested using a real project in the electrical industry – engineering and construction of the main low voltage switchboard for a live fish carrier (Helix Q7000) in Norway. Project team members report that the analysis is time consuming but results are satisfying – the model allows more systematic and efficient risk management.
Keywords: risk management, optimization, linear programming
Received: 18 December 2016 Accepted: 4 July 2017