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Application of AHP method for project selection in the context of sustainable development

Abstract

Any activity of an industrial enterprise will have an impact on the economic, social and environmental sectors. At present, the main business goal is to generate and maximize profits. The 2030 Agenda for Sustainable Development put the focus on maximizing profit also how profit is generated and what impact have profit-generating activity on society and the environment. Every activity in an industrial enterprise is preceded by decision-making. The multi-criteria nature of decision-making in the context of sustainable development (and its economic, social and environmental criteria) is a prerequisite for the application of multi-criteria optimization methods. The basic precondition to apply exact methods in decision-making is the manager who has knowledge of the exact methods and interest in their application. Based on different theories and decision-making approaches that do not arise from an exact decision-making approach, the decision-makers are unable to make rational decisions. The results of several conducted surveys of managers' decision-making show that managers decide on complex issues based on subjective reasoning or intuition (Liebowitz, in: Forum: intuition-based decision-making: the other side of analytics. https://analytics-magazine.org/forum-intuition-based-decision-making-the-other-side-of-analytics, 2015). The authors of the article focused on the issue of decision-making in the selection of a production project based on the criteria of sustainable development. The aim of the paper is to present the application of exact method—Analytical Hierarchical Process in decision process on above mentioned issue.

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Acknowledgement

The paper is part of the Project within the scheme Young Researcher, called “Increasing the efficiency of logistics and production processes using lean management methods”, No. 1337, KEGA Project No. 030STU-4/2018 called “E-platform for Improving Collaboration among Universities and Industrial Enterprises in the Area of Education” and VEGA Project No. 2/0077/19 called “Working competencies in the context of Industry 4.0 development” and H2020 project Nr. 873134 “Linking Science and Innovation for Gender Equality”.

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Jurík, L., Horňáková, N., Šantavá, E. et al. Application of AHP method for project selection in the context of sustainable development. Wireless Netw 28, 893–902 (2022). https://doi.org/10.1007/s11276-020-02322-2

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  • DOI: https://doi.org/10.1007/s11276-020-02322-2

Keywords

  • Sustainable development
  • Decision-making
  • Multicriteria optimization
  • AHP
  • Project