Multi-criteria Decision Making Problem for Doing Business: Comparison Between Approaches of Individual and Group Decision Making

The selection of location for doing business can be realized by using of several aspects of business regulations as reported by the World Bank. For the goal, a multi-criteria decision making problem is formulated to determine the most preferable city to invest. This decision making problem is solved by two optimization models – by individual decision making preferences expressed in weighted sum method and group decision making considering the proposed modified simple additive weighting. In group decision making, the experts usually are with different background and field of competency. The proposed modification takes into account the difference in experts’ experience by considering all experts’ opinions with different importance in the aggregated final group decision. It is shown that new utility function based on simple additive weighting method more accurately reflect the existing differences in background and field of competency of each expert. Due the multidimensional nature of the problem for doing business, the group decision making approach seems to be more precisely in determination of the best selection to invest.

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