The hierarchical and social decision making procedure for bi-objective optimization problems by using the simple majority decision rule

Multi-objective optimization has been successfully applied to problems of industrial design, problems of quality control and production management, and problems of finance. The theme of these applications is how to choose the best solution for the decision makers out of a set of non-inferior solutions to a multi-objective optimization problem. For this purpose, an optimization model with hierarchical structure, whose lower problem is a multi-objective optimization problem and the upper problem is a preference optimization problem on a set of non-inferior solutions, must be constructed. This kind of hierarchical problems have been previously analyzed only with regard to linear programming problems by Benson6]. In this paper, an algorithm is derived that provides a solution as a social choice, obtained by aggregating plural decision-makers' preferences. In the case of the simple majority rule, the bi-objective problem is transformed into an -parameter choice problem, and the golden section method is applied. The availability of the approach is demonstrated with the means of an illustrative example.Technische Universität BerlinFaculty of Science and Technology, Keio University