A new approach in capability based defense project selection: MAQ and solutions

Evaluation and selection of projects in the field of defense is an important decision problem for the country. While in normal circumstances projects are selected based on financial returns, in the field of defense the realization risk of projects, environmental impact, war field benefits, etc. are evaluated as varied benefits. Selection of projects according to benefits is defined in the literature as capital budgeting problems.Nowadays, ?in long-term defense planning/projects?, the approach is transforming from classic project selection towards an approach based on capability based project selection. In this new approach projects are treated as a whole by including the use in defense sector, manpower requirements, and necessities of training and different scenarios are defined considering different areas.In this dissertation, a new combined approach, MAQ is proposed for selection of the long-term defense projects. MAQ approach is composed of multi-objective- AHP-QFD stages. The capital budgeting problem, modeled by using data gathered from MAQ approach is solved by goal programming and fuzzy goal programmingPre-emptive or additive goal and fuzzy goal programming models are used depending on condition of the decision maker having priority in between objectives or weight values of objectives. Suggested approach and four different solutions applied on sixteen projects and eight scenarios. The results are compared with each other and interpreted.Key Words : Quality Function Deployment (QFD), Analytical Hierarchy Process (AHP), Capital Budgeting Problem (CBP), Goal Programming (GP), Fuzzy Goal Programming (FGP)