Naslov
Multi-Criteria Decision-Making Model Design for Efficient Selection of Investment Projects

Autori
Vidučić, Ljiljana ; Vojvodić Rosenzweig, Višnja , Volarević, Hrvoje

Vrsta, podvrsta i kategorija rada
Radovi u zbornicima skupova, cjeloviti rad (in extenso), znanstveni

Izvornik
KOI 2008: Proceedings of the 12th International Conference on Operational Research / Boljunčić, Valter ; Neralić, Luka ; Šorić, Kristina - Pula : Hrvatsko društvo za operacijska istraživanja (CRORS), 2008, 189-196

Skup
KOI 2008 - 12th International Conference on Operational Research

Mjesto i datum
Pula, Hrvatska, 24.09.2008. - 26.09.2008

Vrsta sudjelovanja
Predavanje

Vrsta recenzije
Međunarodna recenzija

Ključne riječi
Investment Project ; Static And Dynamic Criteria ; The Arbiter ; Multi-Criteria Decision Making Mathematical Model ; Weight Variables ; Optimal Solution

Sažetak
Investments are a basic prerequisite of economic growth and development, as well as increase in employment and population's living standard. Assessment of investment projects' efficiency is the focus of each enterprise’s microeconomic analysis. Selection of investment projects is observed as a multi-criteria decision-making issue. The paper uses several different criteria classified into 2 basic categories - the static criteria (financial indicators from basic accounting statements) and the dynamic criteria (net present value, internal rate of return, etc.). The decision- maker demonstrates the importance of each criterion by using weights or by prioritizing the criteria. The greatest difficulty encountered by the arbiter is the assignment of numerical values to weights. This is why the model prioritizes the criteria, which causes the least problems for the arbiter. For this purpose, a mathematical model is formed for each investment project where the weights are variables with lower and upper boundaries set on them. The optimal solution for the mathematical model is the weight values for the relevant investment project. This way, investment projects are assigned different weight values. The weight values so obtained are then used to determine equal weights for all investment projects. The objective function combining all criteria is formulated as a weighted sum of the nominal criteria values. The assumption in the formulation of the mathematical model is that all criteria are positively oriented and normalized.

Izvorni jezik
Engleski

Znanstvena područja
Matematika, Ekonomija, Interdisciplinarne društvene znanosti

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