The Importance of the Cost Information in Making Decisions

Gratiela Ghic
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Gratiela Ghic: "Dimitrie Cantemir" Christian University

Knowledge Horizons - Economics, 2010, vol. 2, issue 4, 44-50

Abstract: This study insists on presenting the applicability of the multicriterial programming in the economic activity. Because the choosing of the final alternative is based on generating the set of nondominated points algorithm I created the software application package MCRIT (developed in C++) which allow us to generate the Nex set and also the choosing of final alternative using the method of ideal solution. The program was tested on small, medium and large systems and it allow us to obtain the set of nondominated points in a reasonable amount of time. This paper presents a case study which was solved with MCRIT package. Because the Nex set is to large I propose to limit it by imposing an acceptable threshold (an acceptable distance by the ideal solution) to that the variants are accepted by the decision maker. So became efficiently the use of ELECTRE method to determine the final solution. Moreover, besides the fact that the decision maker is moving in the space of reasonable solutions, it also could considerate the qualitative criterions which accompanying the reality of model and which couldn’t be surprised by the mathematical programming.

Keywords: Multi-criteria analisys; MCRIT software (search for similar items in EconPapers)
JEL-codes: C49 (search for similar items in EconPapers)
Date: 2010
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