Abstract
This paper presents a mathematical programming algorithm for solving decision problems under multiple objectives and its application to the practical problem of resource allocation among the university activities of teaching and research. The solution of such a problem, which is formally identical with the vector maximum problem, is generated by an interactive discussion process between the decision maker and a computer as an anonymous partner. In this process the decision maker is requested to provide under partial information about the set of feasible solutions an answer for at least one component of any given efficient output (goal) vector, that he would not accept losses regarding the corresponding actual numerical values. The method converges as will be demonstrated by a numerical example. Though the existence of a utility function is assumed neither explicitly nor implicitly, the weights of the output components in the optimum simultaneously determined by the process can be interpreted as a linear approximation to the utility function of the decision maker. Statements on the convergence rapidity of the process are made in comparison with another numerical example.
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Fandel, G. (1978). Public Investment Decision Making with Multiple Criteria; an Example of University Planning. In: Zionts, S. (eds) Multiple Criteria Problem Solving. Lecture Notes in Economics and Mathematical Systems, vol 155. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-46368-6_7
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DOI: https://doi.org/10.1007/978-3-642-46368-6_7
Publisher Name: Springer, Berlin, Heidelberg
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