A generalized approach for multi-criteria decision aid methods

Abstract Outranking methods were developed for solving Multi-Criteria Decision-Making (MCDM) problems with a finite set of alternatives. In this paper, we propose a comprehensive framework that extends the application of outranking methods for solving MCDM problems with continuous sets of alternatives. This is achieved through the integration of multi-objective optimization methods and outranking methods. The derived Three-phases integration procedure is illustrated by the integration of the Weighted Sum method for continuous MCDM problems and the outranking Preference Ranking Organization METHod for Enrichment Evaluations (PROMETHEE) method. Moreover, the proposed framework incorporates the use of the Principal Component Analysis (CPA) to address the problem of selecting a Pareto optimal solution when the phase of application of the outranking method generates a large set of ‘best’ Pareto optimal solutions. The application potential of the procedure is illustrated by a multi-dimensional financial portfolio selection problem.