Application Of Multi-criteria Decision-making Based On Combined Analytic Hierarchy Process And Linear Programming As An Alternative For Project Selection The Case Of Ethiopian Road Authority Road Projects

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Resources are limited for pursuing and funding new projects hence the challenge is tornprioritize, select and allocate optimally. Ethiopian public projects encountered challenges inrnselecting best projects, finishing in time and cost. The project selection methods commonlyrnused are quantitative in nature and they lack to account for intangible factors which can affectrnthe outcome of project appraisals. An integrated Analytic Hierarchy Process and LinearrnProgramming model that considered both quantitative and qualitative factors in choosingrncapital project is presented. The combined model is applied in Ethiopian Roads Authorityrnroad projects with Planning and Development Commission and Ministry of Finance as primernstakeholders in project selections. Research surveys were conducted in those organizationsrnand secondary documents were used for the analysis. The results indicated projectrncharacteristics, with 0.5 weight, were ranked higher than other criteria related to the firmrncharacteristic and external factors with weights of 0.36 and 0.14 respectively. The mostrnimportant project selection sub-criteria found to be profit, measure of worth, project risk,rnfinancial standing, and resources with the overall weight of 0.15, 0.13, 0.12, 0.10 and 0.09rnrespectively. Others are economic factors, experience, technical ability, size & complexity,rnduration, organization culture, environmental, location factors, social responsibility, andrnpolitical factors with weights of 0.07, 0.07, 0.07, 0.06, 0.04, 0.03, 0.02, 0.02, 0.02, and 0.01rnrespectively. Four projects out of six total projects were selected to have the most use ofrnresources under the available resource constraints. The study provides a simple frameworkrnthat can be used by organizations to make these challenging decisions. The integrated modelrnis recommended for its ability to capture all possible factors, optimality advantage andrnapplicability in different situations with refining the selection criteria.

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Application Of Multi-criteria Decision-making Based On Combined Analytic Hierarchy Process And Linear Programming As An Alternative For Project Selection The Case Of Ethiopian Road Authority Road Projects

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