Using simulation to incorporate dynamic criteria into multiple criteria decision-making

TL;DR

This paper demonstrates how discrete event simulation can be integrated into multicriteria decision analysis to handle dynamic and uncertain criteria, providing a more comprehensive decision-making framework.

Contribution

It introduces a novel approach combining simulation with multicriteria analysis to incorporate dynamic and uncertain criteria into decision-making processes.

Findings

Dynamic criteria can be effectively integrated into multicriteria analysis.

Simulation-guided analysis yields different optimal decisions compared to static methods.

The approach enhances decision support by considering variability and uncertainty.

Abstract

In this paper, we present a case study demonstrating how dynamic and uncertain criteria can be incorporated into a multicriteria analysis with the help of discrete event simulation. The simulation guided multicriteria analysis can include both monetary and non-monetary criteria that are static or dynamic, whereas standard multi criteria analysis only deals with static criteria and cost benefit analysis only deals with static monetary criteria. The dynamic and uncertain criteria are incorporated by using simulation to explore how the decision options perform. The results of the simulation are then fed into the multicriteria analysis. By enabling the incorporation of dynamic and uncertain criteria, the dynamic multiple criteria analysis was able to take a unique perspective of the problem. The highest ranked option returned by the dynamic multicriteria analysis differed from the other decision aid techniques.