IDEAS home Printed from https://ideas.repec.org/a/kap/rqfnac/v7y1996i1p97-112.html
   My bibliography  Save this article

Capital Budgeting with Multiple Criteria and Multiple Decision Makers

Author

Listed:
  • Kwak, Wikil
  • Shi, Yong
  • Lee, Heeseok
  • Lee, Cheng F.

Abstract

In this article, we propose a model that incorporates the preferences of multiple decision makers into a decision-making process using (1) The analytical hierarchy process (AHP); and (2) multiple criteria and multiple constraint levels (MC "squared") linear programming in a capital budgeting context. Our model can foster strategic and nonfinancial factors that are important in the capital budgeting problems of the current business environment. The two-phased solution framework proposed in this article is sufficiently flexible to reach a compromise among decisionmakers. Our method also facilitates collection of decision makers' preferences to minimize suboptimization of overall company's goals. In addition, application of AHP to derive weights to decision makers' preferences for resource availability decreases the solution complexity. All these characteristics represent a significant improvement compared with previous linear or goal programming approaches to capital budgeting problems. Coauthors are Yong Shi, Heeseok Lee, and Cheng F. Lee. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Kwak, Wikil & Shi, Yong & Lee, Heeseok & Lee, Cheng F., 1996. "Capital Budgeting with Multiple Criteria and Multiple Decision Makers," Review of Quantitative Finance and Accounting, Springer, vol. 7(1), pages 97-112, July.
    • Handle: RePEc:kap:rqfnac:v:7:y:1996:i:1:p:97-112
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Freville, Arnaud, 2004. "The multidimensional 0-1 knapsack problem: An overview," European Journal of Operational Research, Elsevier, vol. 155(1), pages 1-21, May.
    2. Rong, Aiying & Figueira, José Rui, 2014. "Dynamic programming algorithms for the bi-objective integer knapsack problem," European Journal of Operational Research, Elsevier, vol. 236(1), pages 85-99.
    3. Kathrin Klamroth & Margaret M. Wiecek, 2000. "Dynamic programming approaches to the multiple criteria knapsack problem," Naval Research Logistics (NRL), John Wiley & Sons, vol. 47(1), pages 57-76, February.
    4. Hanwen Chen & Wang Dong & Hongling Han & Nan Zhou, 2017. "A comprehensive and quantitative internal control index: construction, validation, and impact," Review of Quantitative Finance and Accounting, Springer, vol. 49(2), pages 337-377, August.
    5. Klamroth, Kathrin & Wiecek, Margaret M., 2001. "A time-dependent multiple criteria single-machine scheduling problem," European Journal of Operational Research, Elsevier, vol. 135(1), pages 17-26, November.
    6. Rong, Aiying & Figueira, José Rui, 2013. "A reduction dynamic programming algorithm for the bi-objective integer knapsack problem," European Journal of Operational Research, Elsevier, vol. 231(2), pages 299-313.
    7. Shi, Yong, 1998. "Optimal system design with MC2 linear programming: A dual contingency plan approach," European Journal of Operational Research, Elsevier, vol. 107(3), pages 692-709, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:rqfnac:v:7:y:1996:i:1:p:97-112. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.