From Maximization to Optimization: MCDM and the Eight Models of Optimality

Since its inception, Multiple Criteria Decision Making (MCDM) was destined to evolve alternative notions of optimality. Its challenges to the traditional OR/MS single-objective maximization have crossed the generations, continuing for some 25 years. Yet, its alternative notions of optimality still remain mostly undeveloped.It is multiple rather than single criteria that characterize “the best” (optimal) in the areas of economics, engineering, management and business. In this paper we develope the notion of optimum conceived as a balance among multiple criteria. We propose a classificational scheme of eight different, separate and mutually irreducible optimality concepts, with the traditional single-objective “optimality” representing a one special case. The eight optimality concepts provide a useful foundation and framework for the future of MCDM in both research and applications.