Running Scenario Optimizations

You can run an optimization program (optimizer) that determines the best set of lifecycle entities (proposals, projects, and assets) to include and exclude from all the lifecycle entities in an existing scenario comparison, in order to maximize one of the following as an objective:

• NPV. NPV is collective net present value for the lifecycle entities that the optimizer selects. For a definition of NPV, see Net Present Value (NPV).

• Total Score. Total Score is the collective Total Score for the lifecycle entities that the optimizer selects. For information about how the Total Score for a lifecycle entity is calculated, see Determining Value and Risk Ratings.

• Value. Value is the collective Value Rating for the lifecycle entities that the optimizer selects. For information about how the Value Rating for a lifecycle entity is calculated, see Determining Value and Risk Ratings.

Optimization uses the scenario comparison interface, and you can specify separate optimization criteria for one, two, or all three scenarios in a scenario comparison. Any scenario has only one optimization result for a given set of optimization criteria you specify, as described in the following section. Within one scenario comparison, you might want to optimize different scenarios for different performance objectives or different optimization criteria.