Multiple Criteria Decision Making/Aiding

Up against myriad urban problems, diverse social and economic issues, and a limited financial budget, it might seem not just difficult but almost impossible to create a balance and identify the projects that would bring about the greatest benefits to society. Yet, planners all around the world strive to achieve that balance and prioritize their investments into the best projects. It is this balancing act that can be aptly termed “multiple criteria decision making” (MCDM), because it involves making decisions based on multiple criteria. While MCDM could relate to any field or subject, in the context of transportation, it relates to how MCDM has been an effective tool in making public investment decisions such as project selection and prioritization.

In matters of public investment, budget constraints are always present, and it is vital to assess the contribution of a particular project to public welfare, as well as to choose a project with maximum welfare potential. However, there is a never a single decision maker behind project selection, and that decision is always made as a result of group discussions and compromises.

The decision-making process, in itself, is a significant factor in selecting a project, and recognition of this fact has led to the development of a framework of analysis for decision making where projects are analyzed against a set of criteria. This analysis framework can be called a decision-making support system (DSS). A DSS is usually a computer-based information system used to support decision-making activities in situations where is it not possible or desirable to have an automated system performing the entire decision process. A DSS also makes it easier to interpret multiple criteria, leading to faster and more efficient decision making. So, what are the different criteria and how are they assessed to make decisions?