Abstract
Different multiple objectives expressed in different units make optimization difficult. Therefore, the internal mechanical solution of a Ratio System, producing dimensionless numbers, is preferred to weights, which are most of the time used to compare the different units. In addition, the ratio system creates the opportunity to use a second approach: a non-subjective Reference Point Theory. Therefore, the Reference Point Theory uses the ratios found in the ratio system as co-ordinates for the alternative solutions, which are then compared to a Maximal Objective Reference Point. The two approaches form a control on each other. This overall theory is called MOORA (Multi-Objective Optimization by Ratio Analysis). The results are still more convincing if a Full Multiplicative Form is added, three methods assembled under the name of MULTIMOORA. At that moment, the control by three different approaches forms a guaranty for a solution being as non-subjective as possible. As to calculate the sum of three obtained ranks is not allowed, a theory of Ordinal Dominance is developed in order to remain in the ordinal sphere.
MULTIMOORA is used to decide upon an investment in Belgian shares on basis of a ranking in the BEL20 Index.
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Notes on contributors
Willem K. M. Brauers
Willem K. M. BRAUERS. Doctor honoris causa Vilnius Gediminas Technical University, was graduated as: Ph.D. in economics (Un. of Leuven), Master of Arts (in economics) of Columbia Un. (New York), Master in Economics, Master in Management and Financial Sciences, Master in Political and Diplomatic Sciences and Bachelor in Philosophy (all of the Un. of Leuven). He is professor ordinarius at the Faculty of Applied Economics of the University of Antwerp, Honorary Professor at the University of Leuven, the Belgian War College, the School of Military Administrators and the Antwerp Business School. He was a research fellow in several American institutions like Rand Corporation, the Institute for the Future, the Futures Group and extraordinary advisor to the Center for Economic Studies of the University of Leuven. He was consultant in the public sector, such as the Belgian Department of National Defense, the Department of Industry in Thailand, the project for the construction of a new port in Algeria (the port of Arzew) and in the private sector such as the international seaport of Antwerp and in electrical works. He was Chairman of the Board of Directors of SORCA Ltd.Brussels, Management Consultants for Developing Countries, linked to the worldwide group of ARCADIS. At the moment he is General Manager of CONSULTING, Systems Engineering Consultants. Brauers is member of many international scientific organizations. His specialization covers: Optimizing Techniques with Different Objectives, Forecasting Techniques, Input-Output Techniques and Public Sector Economics such as for National Defense and for Regional Sub-optimization. His scientific publications consist of seventeen books and several hundreds of articles and reports in English, Dutch and French.
Romualdas Ginevičius
Romualdas GINEVIČIUS. Professor, Dr Habil, Head of the Department of Enterprise Economics and Management, construction engineer and economist. The author of more than 350 research papers and over 20 scientific books; Editor-in-Chief of the “Journal of Business Economics and Management” (located in ISI database “Web of Science”) and the journal “Business: Theory and Practice”. Research interests: organization theory, complex quantitative evaluation of social processes and phenomena.