Logo image
Back
Optimal decision-making via binary decision diagrams for investments under a risky environment
Journal article   Open access   Peer reviewed

Optimal decision-making via binary decision diagrams for investments under a risky environment

Alberto Pliego Marugán, Fausto Pedro García Márquez and Benjamin Lev
International journal of production research, v 55(18), pp 5271-5286
17 Sep 2017
DOI: https://doi.org/10.1080/00207543.2017.1308570
url
http://hdl.handle.net/10578/16075View
SubmittedCC BY-NC-ND V4.0,  Open

Abstract

binary decision diagrams decision-making optimal investment resource allocation
This paper presents two methods for supporting investments and resource allocation in a constrained risky environment. These methods are based on the application of logical decision trees and binary decision diagrams as an approach that allows quantitative analysis of a qualitative study. The scenario considered in this paper is a decision-making process under risk environment, where stochastic variables are considered. The two novel procedures are introduced to facilitate the resource allocation as the objective of the decision-making process. The first procedure uses the analytic expression provided by binary decision diagrams as an objective function of a non-linear programing model. The second procedure introduces an importance measure that takes into account some external constraints, unlike the classical importance measures that only consider the topology of the tree. The first technique will optimise the outcomes and the second will provide a good approximation of the outcomes using simpler calculations.

Metrics

4 Record Views
41 citations in Web of Science
63 citations in Scopus

Details

InCites Highlights

Data related to this publication, from InCites Benchmarking & Analytics tool:

Collaboration types
Domestic collaboration
International collaboration
Web of Science research areas
Engineering, Industrial
Engineering, Manufacturing
Operations Research & Management Science
Logo image