ABSTRACT
This chapter discusses techniques that are appropriate for situations in which the decision maker needs to consider multiple criteria when making the overall best decision. This chapter begins with an introduction to goal programming. It allows problems to have multiple goals. This chapter then introduces a method known as the analytical hierarchy process, which allows the user to make paired comparisons between the criteria and a series of paired comparisons between the alternatives of the decision to arrive at a priority ranking of the alternatives of the decision. Subsequently, a variety of decision theory problems with their corresponding solutions are proposed. The chapter also provides a better understanding of modelling decision-making problems through decision-making trees. It sets out different formulations of problems with their solutions in the field of engineering and management. All learning outcomes, solved examples, questions, and practice problems are mapped with Bloom’s Taxonomy level (BT level) 1 to 6.
