Original scientific paper

USAGE OF INTERVAL CAUSE-EFFECT RELATIONSHIP COEFFICIENTS IN THE QUANTITATIVE MODEL OF STRATEGIC PERFORMANCE

Dmitry M. Yershov ; Faculty of Applied Mathematics and Physics, Moscow Aviation Institute (National Research University), Moscow, Russia
Ekaterina A. Babenko ; Faculty of Applied Mathematics and Physics, Moscow Aviation Institute (National Research University), Moscow, Russia
Stanislav V. Skorodumov ; Faculty of Applied Mathematics and Physics, Moscow Aviation Institute (National Research University), Moscow, Russia

Abstract

This paper proposes the method to obtain values of the coefficients of cause-effect relationships between strategic objectives in the form of intervals and use them in solving the problem of the optimal allocation of organization’s resources. We suggest taking advantage of the interval analytical hierarchy process for obtaining the ntervals. The quantitative model of strategic performance developed by M. Hell, S. Vidučić and Ž. Garača is employed for finding the optimal resource allocation. The uncertainty originated in the optimization problem as a result of interval character of the cause-effect relationship coefficients is eliminated through the application of maximax and maximin criteria. It is shown that the problem of finding the optimal maximin, maximax, and compromise resource allocation can be represented as a mixed 0-1 linear programming problem. Finally, numerical example and directions for further research are given.

Keywords

interval analytical hierarchy process; quantitative model of strategic performance; cause-effect relationship coefficients; resource allocation problem; extreme optimism (pessimism) criterion; mixed 0 1 linear programming problem; balanced scorecard

Hrčak ID:

96814

URI

https://hrcak.srce.hr/96814

Publication date:

30.12.2012.

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