In a paper published in Management Science in 1984, Korhonen, Wallenius, and Zionts presented the... more In a paper published in Management Science in 1984, Korhonen, Wallenius, and Zionts presented the idea and method based on convex-cone dominance in the discrete Multiple Criteria Decision Making framework. In our current paper, we revisit the old idea from a new standpoint and provide the mathematical theory leading to a dual-cone based approach to solving such problems. Our paper makes the old results computationally more tractable. The results provided in the present paper also help extend the theory.
About the Role of Intuition 2.1 Background Intuition is a very necessary element of creative work... more About the Role of Intuition 2.1 Background Intuition is a very necessary element of creative work, such as research. Many famous scientists have discussed the role of intuition in their work. We provide two quotes. "Isaac Newton supposedly watched an apple fall from a tree and suddenly connected its motion as being caused by the same universal gravitational force that governs the moon's attraction to the earth." John Maynard Keynes, the famous economist, said "Newton owed his success to his muscles of intuition. Newton's powers. . ." (www.p-i-a.com/Magazine/ Issue19/Physics_19.htm). Gigerenzer, author of the book Gut Feelings: The Intelligence of the Unconscious (2008), claims that he is both intuitive and rational. "In my scientific work, I have hunches. I can't explain always why I think a certain path is the right way, but I need to trust it and go ahead. I also have the ability to check these hunches and find out what they are about. That's the science part. Now, in private life, I rely on instinct. For instance, when I first met my wife, I didn't do computations. Nor did she." (B. Kasanoff in Forbes Magazine February 21st, 2017.) But the difference between research and decision-making is that, intuition often guides research, but is subsequently subjected to rigorous laboratory and field tests. We ask that the same is done about the use of intuition in decision-making. Because solely basing your decisions (in particular, in the corporate context) on intuition, is very risky-and unnecessary. If possible, one should do some form of analysis, either to help support the intuition or challenge it. This chapter serves as motivation for us, why we often benefit from some form of analysis. Daniel Kahneman was interviewed on May 25th, 2012, for the Spiegel Online Magazine about the role of intuition in decision-making. The interview is interesting and we reproduce here the beginning of it (Also see Kahneman 2011).
International Series in Operations Research & Management Science, 2020
To improve performance is one of the key tasks of managers in organizations. Demands to make oper... more To improve performance is one of the key tasks of managers in organizations. Demands to make operations more profitable and efficient is common. Performance is often simply measured with a monetary yardstick: the private-sector firm making most money or the public sector organization operating with the least expenditure is considered to be best.
In the presence of multiple objectives, ‘optimizing’ each of them separately usually leads to dif... more In the presence of multiple objectives, ‘optimizing’ each of them separately usually leads to different solutions. Which solution the decision-maker prefers depends on her preferences, that is how she weighs the different objectives.
This is a PDF file of an unedited manuscript that has been accepted for publication. As a service... more This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. Highlights A lexicographic approach radially projects units onto the efficient frontier. Components of the radial projection vector are dropped step by step. The target on the efficient frontier is found in the spirit of radial projection. The (in)efficiency score is individual for all controllable variables. A numerical illustration and an empirical example demonstrate the approach.
This is an electronic reprint of the original article. This reprint may differ from the original ... more This is an electronic reprint of the original article. This reprint may differ from the original in pagination and typographic detail.
... Jon Marquis, John W. Fowler, Esma Gel Arizona State University, PO Box 875906 Tempe, AZ 85287... more ... Jon Marquis, John W. Fowler, Esma Gel Arizona State University, PO Box 875906 Tempe, AZ 85287-5906, USA, {Jon.Marquis, John.Fowler, Esma.Gel}@asu.edu Murat Köksalan Middle East Technical University, 06531, Ankara Turkey, [email protected] ... 592 MISTA 2007 ...
Managers often base their decisions on forecasts; forecasts (or estimates) of future costs, sales... more Managers often base their decisions on forecasts; forecasts (or estimates) of future costs, sales, revenue, or the likelihood of future events. For our decision-making, it is critical that such forecasts are as accurate as possible. Humans are notoriously not very good with probabilities. The technical term is that they are not necessarily well-calibrated probability assessors. The only way to improve oneself as a forecaster is to get feedback on, how you did in the past. Your past forecasts and estimates must be on record, so that we can double check how well you did in the past. How accurate have you been? Quite often estimates and forecasts involve probabilities. Besides the decision traps that we have discussed, there are many other traps, which distort our capability to assess (often) subjective probabilities. Some of the most common such traps are:
Thus far, we have discussed decision-making in the framework, where all decision alternatives are... more Thus far, we have discussed decision-making in the framework, where all decision alternatives are known or can be enumerated. In that case, the problem is to identify the most preferred alternative from among those alternatives.
To improve performance is one of the key tasks of managers in organizations. Demands to make oper... more To improve performance is one of the key tasks of managers in organizations. Demands to make operations more profitable and efficient is common. Performance is often simply measured with a monetary yardstick: the private-sector firm making most money or the public sector organization operating with the least expenditure is considered to be best.
When facing complex multi-criteria decision problems, there is a need to support decision-makers.... more When facing complex multi-criteria decision problems, there is a need to support decision-makers. In this chapter we outline several computer-based decision support systems, which heavily use computer-graphics. At the time they each represented state-of-the-art technology. We describe the VICO system based on harmonious houses, and the VIMDA system based on line graphs. Both systems support decisions, where we can list all alternatives. The third system, which we describe, is called VIG. It is targeted for supporting decision-making in Multiple Objective Linear Programming environments, where the alternatives are implicitly defined via constraints.
This is a PDF file of an unedited manuscript that has been accepted for publication. As a service... more This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. Highlights An interactive algorithm for multi-objective integer programs is developed. The algorithm finds the most preferred point at a desired level of accuracy. The decision maker is assumed to have an underlying quasiconcave value function. Extensive computational experiments show the algorithm works very well.
In a paper published in Management Science in 1984, Korhonen, Wallenius, and Zionts presented the... more In a paper published in Management Science in 1984, Korhonen, Wallenius, and Zionts presented the idea and method based on convex-cone dominance in the discrete Multiple Criteria Decision Making framework. In our current paper, we revisit the old idea from a new standpoint and provide the mathematical theory leading to a dual-cone based approach to solving such problems. Our paper makes the old results computationally more tractable. The results provided in the present paper also help extend the theory.
About the Role of Intuition 2.1 Background Intuition is a very necessary element of creative work... more About the Role of Intuition 2.1 Background Intuition is a very necessary element of creative work, such as research. Many famous scientists have discussed the role of intuition in their work. We provide two quotes. "Isaac Newton supposedly watched an apple fall from a tree and suddenly connected its motion as being caused by the same universal gravitational force that governs the moon's attraction to the earth." John Maynard Keynes, the famous economist, said "Newton owed his success to his muscles of intuition. Newton's powers. . ." (www.p-i-a.com/Magazine/ Issue19/Physics_19.htm). Gigerenzer, author of the book Gut Feelings: The Intelligence of the Unconscious (2008), claims that he is both intuitive and rational. "In my scientific work, I have hunches. I can't explain always why I think a certain path is the right way, but I need to trust it and go ahead. I also have the ability to check these hunches and find out what they are about. That's the science part. Now, in private life, I rely on instinct. For instance, when I first met my wife, I didn't do computations. Nor did she." (B. Kasanoff in Forbes Magazine February 21st, 2017.) But the difference between research and decision-making is that, intuition often guides research, but is subsequently subjected to rigorous laboratory and field tests. We ask that the same is done about the use of intuition in decision-making. Because solely basing your decisions (in particular, in the corporate context) on intuition, is very risky-and unnecessary. If possible, one should do some form of analysis, either to help support the intuition or challenge it. This chapter serves as motivation for us, why we often benefit from some form of analysis. Daniel Kahneman was interviewed on May 25th, 2012, for the Spiegel Online Magazine about the role of intuition in decision-making. The interview is interesting and we reproduce here the beginning of it (Also see Kahneman 2011).
International Series in Operations Research & Management Science, 2020
To improve performance is one of the key tasks of managers in organizations. Demands to make oper... more To improve performance is one of the key tasks of managers in organizations. Demands to make operations more profitable and efficient is common. Performance is often simply measured with a monetary yardstick: the private-sector firm making most money or the public sector organization operating with the least expenditure is considered to be best.
In the presence of multiple objectives, ‘optimizing’ each of them separately usually leads to dif... more In the presence of multiple objectives, ‘optimizing’ each of them separately usually leads to different solutions. Which solution the decision-maker prefers depends on her preferences, that is how she weighs the different objectives.
This is a PDF file of an unedited manuscript that has been accepted for publication. As a service... more This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. Highlights A lexicographic approach radially projects units onto the efficient frontier. Components of the radial projection vector are dropped step by step. The target on the efficient frontier is found in the spirit of radial projection. The (in)efficiency score is individual for all controllable variables. A numerical illustration and an empirical example demonstrate the approach.
This is an electronic reprint of the original article. This reprint may differ from the original ... more This is an electronic reprint of the original article. This reprint may differ from the original in pagination and typographic detail.
... Jon Marquis, John W. Fowler, Esma Gel Arizona State University, PO Box 875906 Tempe, AZ 85287... more ... Jon Marquis, John W. Fowler, Esma Gel Arizona State University, PO Box 875906 Tempe, AZ 85287-5906, USA, {Jon.Marquis, John.Fowler, Esma.Gel}@asu.edu Murat Köksalan Middle East Technical University, 06531, Ankara Turkey, [email protected] ... 592 MISTA 2007 ...
Managers often base their decisions on forecasts; forecasts (or estimates) of future costs, sales... more Managers often base their decisions on forecasts; forecasts (or estimates) of future costs, sales, revenue, or the likelihood of future events. For our decision-making, it is critical that such forecasts are as accurate as possible. Humans are notoriously not very good with probabilities. The technical term is that they are not necessarily well-calibrated probability assessors. The only way to improve oneself as a forecaster is to get feedback on, how you did in the past. Your past forecasts and estimates must be on record, so that we can double check how well you did in the past. How accurate have you been? Quite often estimates and forecasts involve probabilities. Besides the decision traps that we have discussed, there are many other traps, which distort our capability to assess (often) subjective probabilities. Some of the most common such traps are:
Thus far, we have discussed decision-making in the framework, where all decision alternatives are... more Thus far, we have discussed decision-making in the framework, where all decision alternatives are known or can be enumerated. In that case, the problem is to identify the most preferred alternative from among those alternatives.
To improve performance is one of the key tasks of managers in organizations. Demands to make oper... more To improve performance is one of the key tasks of managers in organizations. Demands to make operations more profitable and efficient is common. Performance is often simply measured with a monetary yardstick: the private-sector firm making most money or the public sector organization operating with the least expenditure is considered to be best.
When facing complex multi-criteria decision problems, there is a need to support decision-makers.... more When facing complex multi-criteria decision problems, there is a need to support decision-makers. In this chapter we outline several computer-based decision support systems, which heavily use computer-graphics. At the time they each represented state-of-the-art technology. We describe the VICO system based on harmonious houses, and the VIMDA system based on line graphs. Both systems support decisions, where we can list all alternatives. The third system, which we describe, is called VIG. It is targeted for supporting decision-making in Multiple Objective Linear Programming environments, where the alternatives are implicitly defined via constraints.
This is a PDF file of an unedited manuscript that has been accepted for publication. As a service... more This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to our customers we are providing this early version of the manuscript. The manuscript will undergo copyediting, typesetting, and review of the resulting proof before it is published in its final form. Please note that during the production process errors may be discovered which could affect the content, and all legal disclaimers that apply to the journal pertain. Highlights An interactive algorithm for multi-objective integer programs is developed. The algorithm finds the most preferred point at a desired level of accuracy. The decision maker is assumed to have an underlying quasiconcave value function. Extensive computational experiments show the algorithm works very well.
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Papers by Pekka Korhonen