The multicriteria method for environmentally oriented business decision-making
DOI:
https://doi.org/10.2298/YJOR0401065CKeywords:
analytic hierarchy process, environmental management, linear mixed integer optimization model, multicriteria decision-making method, simulationAbstract
Stimulated by the expressed managers’ need for some completed methods for environmental management in enterprises, we present the method for environmentally oriented business decision-making. It is based on simulations where optimization models of business processes are used as scenarios. The possibilities for an integrated approach to environmental protection are introduced and – decomposed according to the type of the considered element by using zero-one variables – included in the optimization models. The method is completed for multicriteria decision-making where in the simulations obtained optimal values are included. In a real-life case where the Analytic Hierarchy Process technique is used to evaluate environmentally oriented business processes, special attention is given to criteria and weights: we consider preferences and survey findings on the environmental impact of business processes in the enterprise, survey findings on environmental management in the processing industry, and ecobalances.References
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