This paper describes the development of a decision support system for the selection of a portfolio of R&D projects, which was carried out for a large electricity utility corporation. The DSS was constructed round a reference point approach for the underlying multi-criteria decision problem. The application of this approach did require a less usual form of scalarizing function as well as a heuristic algorithm for solving a non-linear knapsack problem. Practical aspects of the implementation of the multi-criteria approach in a DSS operating on a PC are also discussed.
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Theodor J. Stewart (1991) studied this question.
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