The Nature Of Strategic-Decision-Making Models

Abstract

In the multiple goal function problems, there is no optimum solution fully satisfying all goals at the same time. The individual goal’s functions are, in general, conflicting and it is not possible to have an optimization method to solve the problem. There is usually a consensus solution satisfying minimal criteria of optimum values for each individual goal function. This consensus is based on the Pareto’s principle presented in chapter nine. The optimal decision making in problems with multiple goals will be analyzed at the end of this chapter (Goicoechea et al., 1982; Keeney & Raiffa, 1976; Dyson, 1990; Saaty, 1980, 1994; Bonabeau, 2003; Charan, 2001; Choo, 1998; Day et al., 1997). In considering restrictions across several scenarios, the problem solution becomes more difficult due to the high number of possible combinations of goal functions and scenarios to be considered.