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book: Multicriteria Decision Making
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Multicriteria Decision Making

Systems Modeling, Risk Assessment, and Financial Analysis for Technical Projects
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Language: English
Published/Copyright: 2023
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About this book

Public corporations and private businesses operate in an increasingly complex, uncertain, and interconnected world. When evaluating investment decisions, business managers can no longer base their decisions primarily on expected financial return. They now must now consider a host of performance value measures (i.e., criteria) pertaining to issues such as environmental and social governance, sustainability, and stakeholder satisfaction. In addition, corporate managers must ensure that their investment decisions are aligned with the company’s vision, mission, and values in order to maintain investor confidence and protect brand image. Lastly, to be truly successful, business managers must assess the risks associated with each performance measure and manage their impacts during project implementation.

This book takes a pragmatic business and economics view towards evaluating competing investment alternatives and/or capital project strategies. It provides a practical step-by- step process using a structured decision analysis framework to evaluate, understand, quantify, and measure project invesment strategies in light of multiple stakeholder objectives and success criteria. This process assists in helping stakeholders (internal and external) achieve a shared understanding of project issues and to facilitate convergence towards a mutually acceptable solution. The approach considers available choices, identified uncertainties, constraints, necessary tradeoffs, and preferences so as to identify solutions that maximize overall benefits while minimizing overall costs and risk. A real world case study is presented in the early chapters and the process steps are demonstrated through application to this case study.

Recent advances in technology allow for investment strategies to be evaluated against multiple criteria within one integrated platform. This book guides the reader in performing multi-criteria decision analysis, including the use of Monte Carlo simulation, within an MS Excel environment using native MS Excel and as well as add-in programs such Palisades Decision Tools suite. Example model structures, screen shots, formulas, and output results are provided throughout the book using an illustrative case study.

  • Written from the perspective of a practitioner for the benefit of practitioners

  • Includes the use of Monte Carlo simulation, within an MS Excel environment as well as add-in programs such Palisades Decision Tools suite.

Author / Editor information

Timothy J. Havranek, Ramboll, USA; Doug MacNair, USA; James Wolf, HCSS Construction Management Software, USA.

Reviews

"[...] The book is well‐written and organized. The introduction clearly helps the reader to understand what is covered in the book and where to find it. It also points out chapters that more experienced economists and professionals familiar with decision analysis can skim without losing the gist of what the authors are discussing on this topic. Though a strength of the book is its presentation of a step‐by‐step process for a structured decision analysis, I would not classify the book as simply a how‐to guide because it is much more than that. [...]"

Book review 2024 by William H. Desvousges in Integrated Environmental Assessment and Management, Volume 20, No 6, page 2369-2370

Supplementary Materials

Topics

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    Frontmatter

    I
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    Acknowledgements

    VII
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    Contents

    IX
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    List of Figures

    XV
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    List of Tables

    XVII
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    Access to MCDM Modeling Template and Case Study Solution, Statement Regarding Lumivero and Palisade Corporation, Palisade Corporation’s (Now Lumivero’s) Decision Tools Suite

    XIX
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    1 Introduction

    1
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    2 Introduction of a Case Study

    26
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    3 Foundations of MCDM

    41
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    4 The MCDM Process

    98
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    5 The Evaluation Process – Building the MCDM Model

    127
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    6 The Agreement Phase

    182
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    Appendix A Example Stakeholder Survey

    199
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    Appendix B Case Study: Example Stakeholder Analysis

    203
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    Appendix C Case Study Objectives Hierarchy

    205
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    Appendix D Case Study Strategy Table

    207
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    Appendix E Case Study: Completed Conjoint Surveys and Objectives hierarchy

    211
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    Index

    221
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Publishing information
Pages and Images/Illustrations in book
eBook published on:
June 6, 2023
eBook ISBN:
9783110765861
Paperback published on:
June 6, 2023
Paperback ISBN:
9783110765649
Pages and Images/Illustrations in book
Front matter:
19
Main content:
222
Illustrations:
16
Coloured Illustrations:
46
Tables:
22
Coloured Tables:
8
https://doi.org/10.1515/9783110765861
eBook ISBN: 9783110765861
Paperback ISBN: 9783110765649
Keywords for this book
Decision Analysis; Financial Analysis; Operations Research/Management Science (ORMS); Business Analytics; Systems Modeling
Audience(s) for this book
Professionals engineers, management consultants, business analysts, graduate students.
Safety & product resources
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