A multi-objective decision support system for project selection with an application for the Tunisian textile industry

Abstract

A developing country like Tunisia needs development planning but it will have problems with a top down strategy. As an answer to this problem the paper proposes a Multi-Objective Decision Support System for Project Selection. Project Selection is subject to an evolution concerning the objectives to strive after. If before the stress was put on market analysis, Net Present Value, Internal Rate of Return and other micro-economic targets, macro-economic objectives receive more and more attention such as employment, value added and the influence on the balance of payments. Employment is a human right, sometimes even written down in national constitutions. Traditional Cost-Benefit does not respond to these purposes. Indeed in Cost-Benefit all benefits (objectives) have to be translated into money terms, leading sometimes to immoral consequences. On the contrary Multi-Objective Optimization takes care of different objectives, whereas the objectives keep their own units. However different methods exist for the application of Multi-Objective Optimization. These methods were tested after their performance. MOORA (Multi-Objective Optimization by Ratio analysis) and MULTIMOORA (MOORA plus a Full Multiplicative Form), showed positive results; the more if they were assisted by Ameliorated Nominal Group and Delphi Techniques. A simulation exercise for Tunisia illustrates the use of these methods. The needs of the Tunisian textile industry are analyzed and as an answer three projects facing multiple objectives are simulated.