From a centrally planned economy to multi-objective optimization in an enlarged project management the case of China

Abstract

A previously centrally planned economy like China is in search for new projects, even with competition between projects. Traditional cost-benefit does not respond to this purpose. Indeed cost-benefit is only interested in one specific project and not in a competition between projects. In addition, all goals (objectives) have to be translated into money terms, leading sometimes to immoral consequences. On the contrary in an enlarged project management multi-objective optimization will take care of different objectives, whereas the objectives keep their own units. However, different methods exist for the application of multi-objective optimization. The authors tested them after their robustness resulting in seven necessary conditions. MOORA (Multi-Objective Optimization by Ratio Analysis supplemented with the reference point method) and MULTIMOORA (MOORA Plus Full Multiplicative Form), assisted by ameliorated nominal group and Delphi techniques, will aim to satisfy the seven conditions as much as possible. A simulation exercise on China illustrates the use of these methods.