Aspiration/reservation‐based decision support—a step beyond goal programming

Abstract

AbstractReal‐life decision problems are usually so complex that they cannot be modelled with a single objective function, thus creating a need for clear and efficient techniques for handling multiple criteria to support the decision process. A widely used technique and one commonly taught in general OR/MS courses is goal programming, which is clear and appealing. On the other hand, goal programming is strongly criticized by multiple‐criteria optimization specialists for its non‐compliance with the efficiency (Pareto‐optimality) principle. In this paper we show how the implementation techniques of goal programming can be used to model the reference point method and its extension, aspiration/reservation‐based decision support. Thereby we show a congruence between these approaches and suggest how the GP model with relaxation of some traditional assumptions can be extended to an efficient decision support technique meeting the efficiency principle and other standards of multiobjective optimization theory.