A comparison of interactive multiple-objective decision making procedures (Q1088891)

Many algorithms have been developed for the multiple objective decision making (MODM) problem. Unfortunately, there is a lack of empirical testing of these algorithms. From a managerial point of view, it is desirable to conduct a multi-model evaluation so that decision-makers can determine which method would be best in a given situation. This study compares the applicability of two computerized interactive MODM procedures; the Steuer Method and the Franz Method. Experimentation is designed to determine how effectively the two procedures arrive at a solution based upon interaction with a simulated decision-maker. Non- parametric statistical analysis is performed on the results of randomly generated problems. Both linear and nonlinear utility functions are examined. The experimentation also determines the efficiency by which the procedures derive solutions as measured by the number of iterations necessary for convergence. The results of the study recommend the use of the Steuer procedure when (1) the accuracy of the solution is the critical factor in selecting an interactive MODM algorithm, and/or (2) the objectives under consideration are of relatively equal importance to the decision maker. It is also recommended that the Franz procedure be used when (1) the number of iterations necessary for convergence is the critical factor in the algorithm selection, and/or (2) there is one main objective that the decision maker wishes to accomplish and the remaining objectives are of diminishing importance.