Tradeoff-based decomposition and decision-making in multiobjective programming
To facilitate the evaluation of tradeoffs and the articulation of preferences in multiple criteria decision-making, a multiobjective decomposition scheme is proposed that restructures the original problem as a collection of smaller-sized subproblems with only subsets of the original criteria. A priori preferences on objective tradeoffs are integrated into this process by modifying the ordinary Pareto order by more general domination cones, and decision makers are supported by an interactive decision-making procedure to coordinate any remaining tradeoffs using concepts of approximate efficiency. A theoretical foundation for this method is provided, and an illustrative application to multiobjective portfolio optimization is described in detail.
tradeoffs decomposition multiobjective programming preferences domination cones approximate efficiency portfolio optimization multicriteria decision-making