Multiple Criteria Decision Model For Resource Allocation: A Case Study In An Electric Utility

Abstract

This case study describes the application of multiple criteria decision models to resource allocation in electric utility. The decision situation is characterized by a large number of projects competing for limited funding, the presence of fuzzy criteria, and the available data being ordinal in nature. The large number of projects and the nature of the data preclude the use of utility-theoretic approaches. The ordinal decision model of Cook and Kress is used as a screening tool in a partially automated decision process. The model can be easily explained to management and provides the theoretical rigor not found in simpler decision models.