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Fundamentals of Multiobjective Optimization

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Mathematical Optimization and Economic Analysis

Part of the book series: Springer Optimization and Its Applications ((SOIA,volume 36))

Abstract

In all of the mathematical programming problems considered thus far, we have assumed that one particular objective function, such as the maximization of profit or minimization of cost, was prespecified by some decision maker. In general, however, there exist a large variety of objectives—including maximizing profit, revenue, and market share; increasing environmental quality; etc. Zeleny [89, p. 1] states that “multiple objectives are all around us.” There are some empirical studies supporting this hypothesis. Smith, Boyes, and Peseau [70] found that for 557 large U.S. firms, sales revenue and profits were objectives followed by the firms. Beedles [6] used time series data for the time period 1929–1973 for three large firms and showed that the firms pursued sales revenue, profits, and stock price as their objectives.

To manage a business is to balance a variety of needs and goals.

Milan Zelený (1982)

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  1. Department of Economics, Vienna University of Economics and Business Administration, 1090, Vienna, Austria

    Mikuláš Luptáčik

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Luptáčik, M. (2010). Fundamentals of Multiobjective Optimization. In: Mathematical Optimization and Economic Analysis. Springer Optimization and Its Applications, vol 36. Springer, New York, NY. https://doi.org/10.1007/978-0-387-89552-9_7

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