An MCDM Method with Dynamic Weights for Investment Project Selection

The investment projects evaluation and selection problem is a very important and common decision-making issue for enterprises.In general, enterprises will recruit experts for a committee to review many of the quantitative and qualitative factors in the selection process of investment projects.In the face of uncertain environments, experts may reasonably use interval linguistic variables to express their subjective evaluations of investment projects with respect to each criterion.This study presents a dynamic mechanism to objectively compute the weight of each criterion, and proposes a new MCDM method to determine the ranking order of all investment projects by combining the three indices of performance index, special superior index, and regret index.In order to illustrate the effectiveness of the proposed method, this study compares the project ordering results of the proposed method with the ordering results of other MCDM methods.Based on the results, the proposed model can provide more objective, flexible, and robust results to make decisions for the evaluation of investment projects.Finally, the conclusions and future research directions are discussed in the final section.