Microcomputer based multiple criteria decision support system for strategic planning

There are two major approaches currently used for developing Decision support Systems (DSS) for strategic planning, especially in the objective formulation stage. Several mathematical models have been developed to abstract the decision situation. However, they do not take into account either behavioral aspects of decision making or the presence of multiple and conflicting objectives. A second approach is to consider the several qualitative factors that go into decision making; such considerations are normally situation-dependent and hence it is difficult to provide a system for general managerial situations. The Multiple Criteria Decision Making (MCDM) approach combines the advantages of both the approaches and, therefore, is an excellent alternative for designing DSS. This paper develops an MCDM approach to strategic planning. The model is applied to such a problem in a simulated environment and the problem is solved interactively. Our experience shows that the proposed methodology is a viable approach for solving practical decision problems in strategic planning.