Multi-criteria decision-making in the transport sector

Abstract

The transportation sector stands within a highly competitive environment, continuously seeking for effectiveness and efficiency. In the logic of decision-making processes, optimization-the selection of the best element, with regard to some criterion , from some set of available alternatives-appears central. In addition to traditional decision making, there is the technique of Linear Programming, which is an optimization problem in which the objective function is a linear function subject to linear constraints, which may be equalities and/or inequalities. Many real-life problems can be modeled in terms of Linear Programming, highlighting its strong practical interest. Therefore, Linear Programming can be a useful tool to support management in decision-making activities, helping both to reduce human effort and to provide quantitative results to optimization problems, such as revenue maximization or cost minimization. The aim of this research is to highlight how the combination of qualitative methods and quantitative techniques is an ideal combination for identifying the best solution in the decision-making process, contributing to research in the fields of organizational behavior and management. The chapter analyzes the whole decision-making process in transportation organizations seeking competitive advantage. Through a practical application of Linear Programming, presented using a case study, the chapter results demonstrate the importance of an instrument supporting decision-making process.