ABSTRACT
Transportation agencies generally maintain a number of management programs to handle different systems management issues, such as pavement and bridge preservation, safety improvements, roadside improvements, system expansion, intelligent transportation systems, multimodal facilities, and maintenance. The transportation decision-making process involves multiple stakeholders that often possess conflicting preferences. Ranking, prioritization, and optimization are the typical methods used for project selection. Prioritization method uses condition deterioration models or remaining service life models for analysis. The Markowitz mean-variance analysis is a standard risk management tool used in random variables' comparison. A systematic trade-off between the expected return and the specified risk measure is evaluated. The knapsack model formulation is particularly suited for transportation project selection. The knapsack problem often arises in resource allocation where there are financial constraints. Project selection needs to incorporate budget uncertainty consideration to ensure decision outcomes are realistic.
