@inbook{6443274724804a1ba11cd0ba587faf04,
title = "A Temporal Knapsack Approach to Defence Portfolio Selection",
abstract = "In this chapter we describe the origins and mathematics used in the development of the New Investments to Risked Options (NITRO) portfolio selection tool. This tool was used by the Australian Department of Defence in 2019 for a major review of Australia{\textquoteright}s military force structure called the Force Structure Plan 2020. This is a strategic decision making process that specifies the requirements for the future force structure and identifies, selects, and schedules projects to satisfy those requirements. In order to satisfy organisational needs, the tool was implemented in Microsoft Excel{\textregistered} using the What{\textquoteright}sBest!{\textregistered} optimisation add-in. In this chapter we provide background on the portfolio optimisation problem in Defence. We discuss the challenges of implementing a project portfolio selection and scheduling tool in the Excel{\textregistered} environment along with simple approaches to the visualisation of optimised portfolios. We examine the performance differences between this tool and other commercial solvers. We also analyse the trade-off of using relaxed versus integer decision variables and the use of budget slack on the portfolio selection. We conclude by discussing current portfolio optimisation issues and challenges, along with the viability of the Excel{\textregistered} environment for Defence portfolio selection.",
author = "Gregory Calbert and Terence Weir and Garanovich, {Ivan L.} and Carlos, {Carlos C.}",
note = "Funding Information: The Authors would like to thank Dr. Sharon Boswell, Dr. Yi Yue, and Dr. Lynn Booth for providing valuable feedback in the publication of this book chapter. Publisher Copyright: {\textcopyright} 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.",
year = "2021",
doi = "10.1007/978-3-030-88315-7_7",
language = "English",
isbn = "9783030883140",
series = "Adaptation, Learning, and Optimization",
publisher = "Springer",
pages = "159--191",
editor = "{Robert Harrison}, {Kyle } and Saber Elsayed and {Leonidovich Garanovich}, Ivan and Weir, {Terence } and { G. Boswell}, Sharon and {Amin Sarker}, {Ruhul }",
booktitle = "Adaptation, Learning, and Optimization",
address = "Netherlands",
edition = "1",
}