Each week, a business school professor considered an expert in his or her field defines a key term on the FT Lexicon, an online economics, business and finance glossary.
The FT Lexicon team invited RCEM Expert Prof. Constantin Zopounidis to define the term multiple criteria decision analysis.
Why multi criteria decision analysis should be explained
"Nowadays, policy makers and managers within firms and organisations make decisions in a highly complex environment that requires multiple points of view of very different natures to be considered," says Prof Zopounidis. "Multiple criteria decision analysis introduces a formal framework for supporting the decision process and improving the decision-maker's understanding of a problem's characteristics and the available options."