Hamid Shahbandarzadeh

Background: The selection of investment projects is one of the main issues of the government in using the existing facilities and capacities without spending additional resources. Since governments are responsible for protecting the public interest, want to align strategically a combination of different investment objectives and sometimes contradictory as far as possible. Aim: This study aimed to explain the mathematical model for investment projects by providing an integer linear programming model with three objectives: reducing costs, increasing employment and reducing greenhouse gas emissions - carbon dioxide. Methodology: At first, the objectives of the model were formulated by reviewing the criteria in the background and reviewing the opinions of experts. The mathematical model was tested with extracted data from 51 proposed projects by GAMS software. Among common methods, the Augmented Epsilon Constraint is used. Also the cost reduction goal was chosen as the main objective by surveying experts and applying the Intuitionistic fuzzy approach. The proposed model was evaluated in pareto front with eighty-one cut Augmented Epsilon Constraints and was compared with the Classical Epsilon Constraint approach. Data Envelopment Analysis and Lingo software were used to reduce the obtained answers. Finally, the validity of the model was tested using Sensitivity Analysis and Face Validation. Results: Further examination revealed the Augmented approach outperforms the Classical approach. Conclusions: The mathematical model of the research is able to select the appropriate investment projects. Also, the results of the model test showed that the model has sufficient validity.