Assume this scenario for urban development projects
The City Hall of a large city, has a portfolio of 36 different projects for a five-years plan, pertaining to different areas, such as infrastructure, social, environment, financial, etc. All of them can be executed independently of the others, and the different areas are independent between them.
They are subject to 15 criteria involving also different fields of activity and linked with the projects. However, there are also five more criteria that correspond to a five-year period which is the total duration of the 36 projects.
The characteristics of the scenario are:
· The City Hall has several technical departments such as Infrastructure, Social, Recreation, Parks and Environment, Economics, etc.
· Each City Hall department has an allotted budget
· Because inflation and cost of living each year, the future budget has to be updated using a 2.85 % rate of inflation, as well as 1.5% in cost of living and trade agreements
· For fairness reasons each department has to be assigned at least one of its own projects
· Projects are independent, however project 19 has to precede project 21because technical reasons
· Also, for technical reasons, if project 7 is selected project 32 must also be chosen
· Projects are to be executed in a five years period, therefore, not all of then will start at the same time and not finish at the same time
· For technical reasons there are projects that conflict with each other. Therefore, if project 34 is selected project 36 can’t
· Each project has yearly scheduled rates of construction and different from each other
· Criteria are mostly linked between them and criterion 17 has a correlation factor of 0.82 with criterion 15 and a correlation factor of 0.78 with criterion18
· Criteria 20 and 34 have both lower and upper limits each
· Criterion 23 has negative performance values
· Criteria are a mix of quantitative and qualitative. Three qualitative criteria demand people opinion as how much each project could affect their lives
· Each criterion is limited either by a resource’s availability or by a limit due to technical reasons. For instance, criterion 12 is an environmental criterion that puts a maximum limit to NOx emissions, while criterion 11 calls for minimizing water usage but under the provision that that minimum must be above 250 liters per person and per day
· Total funds available for all projects amount to 25.879,000 Euros, however, the total amount of money required for all projects is 28,367,897 Euros
· As another restriction, the sum of projects investment for each calendar year must be less than a certain amount
· There are difference financing sources and not all of them apply to all projects, and the use of one source prescribes the use of another for the same project
My question is: What MCDM method do you suggest to MODEL and eventually solve this real-world problem?
I said ‘eventually’ because the scenario is so complex that perhaps it does not have a feasible solution, but it needs to be modeled
Do you think that this real-world scenario can be mathematically modeled by any of the MCDM methods?