Defining project approach using decision tree and quasi-hierarchical multiple criteria method

Abstract

The success of any project strongly depends on the decisions made at the initial stage of it’s life cycle. They define the general formula for project realization, specifying how the main goal of the project is going to be reached. The information available in this phase is usually limited. Moreover, the decisions that must be taken are interconnected – choosing a particular solution concerning one of the considered issues determines the set of options that can be analyzed when consecutive problems are solved. Thus, when project approach is defined we face a dynamic decision making problem under risk. A decision tree is a widely used technique for modelling and solving such problems. The paper presents the way in which a multiple criteria decision tree and quasi-hierarchical approach can be used for determining the project approach.