January 2020
considering more than one objective or criterion (Afsordegan, Sánchez, Agell, Zahedi, &Cremades, 2016; Ghafghazi, Sowlati, Sokhansanj, &Melin, 2010; Kaya & Kahraman, 2011; Roy, 1996). PROMETHEE (Behzadian, Kazemzadeh, Albadvi, & Aghdasi, 2010; Brans & Mareschal, 2005; Goumas & Lygerou, 2000; Tavana, Behzadian, Pirdashti, &Pirdashti, 2013) has been proposed as a properMCA technique. PROMETHEE methods are based on outranking the relationship S . This concept does not determine if the relationship among two alternatives a and b is a strong preference ( a P b ), weak preference ( a Q b ), or indiference ( a I b ), but instead it establishes if “the alternative a is at least as good as the alternative b ” (Brans &Mareschal, 2005). PROMETHEE methods are suitable because of their theoretical and practical advantages. For instance, they can associate to each project an AQ index that maximizes the available information in terms of decision- makers’ preferences over the criteria selected, as well as the preferences’ intensities among alternatives and the nature of each criteria (Bouyssou et al., 2006). Other methods could also be allowed to handle this multicriteria approach, for example, the ELECTREmethods (Bouyssou et al., 2006), the Analytical HierarchyProcess (Desai, Bidanda, &Lovell, 2012; Saaty, 2013),MACBETH, or Measuring Attractiveness Through a Categorical-Based Evaluation Technique (Cliville, Berrah, &Mauris, 2007; Costa, De Corte, & Vansnick, 2012), and TOPSIS, or Technique for Order of Preference by Similarity to Ideal Solution (Kaya & Kahraman, 2011; Sakthivel, Ilangkumaran, Nagarajan, & Shanmugam, 2013), to name some. However, these other methods do not clearly state the advantages aforementioned, and the AQ is difcult to interpret.
Capital Budgeting and Portfolio Optimization in DoD
Just as alternative analytical approaches exist, there are also alternative valuemeasures, depending on the stakeholder, organization, and application. For instance, in the DoD, the concept of value is difcult to grasp in some situations and operations that involve purely logistical support, mission readiness, or dependability. This section therefore provides some alternative measures that can be used in lieu of a strict fnancial or economic value. Clearly, within the DoD there are other inherent competing and overriding criteria, including but not limited to domain requirements (sea, air, land,
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Defense ARJ, January 2020, Vol. 27No. 1 : 60-107
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