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continuation on page 405
Lecture Notes
in Economics and
Mathematical Systems
Managing Editors: M. Beckmann and W. Krelle
331
A. Lewandowski A. P. Wierzbicki (Eds.)
Aspiration Based Decision
Support Systems
Theory, Software and Applications
Springer-Verlag
Berlin Heidelberg GmbH
Editorial Board
H.Aibach M.Beckmann (Managing Editor) P.Dhrymes
G. Fandel G.Feichtinger J.Green W.Hildenbrand W.Krelle (Managing Editor)
H.P. Ki.inzi K. Ritter R. Sato U. Schittko P. Schonfeld R. Selten
Managing Editors
Prof. Dr. M. Beckmann
Brown University
Providence, Rl 02912, USA
Prof. Dr. W. Krelle
lnstitut fOr Gesellschafts-und Wirtschaftswissenschaften
der Universitat Bonn
Adenauerallee 24-42, D-5300 Bonn, FRG
Editors
Dr. Andrzej Lewandowski
Project Leader
Methodology of Decision Analysis Project
System and Decision Sciences Program
International Institute for Applied Systems Analysis
A-2361 Laxenburg, Austria
Prof. Dr. Andrzej Piotr Wierzbicki
Institute of Automatic Control
Warsaw University of Technology
Warsaw, Poland
ISBN 978-3-540-51213-4 ISBN 978-3-662-21637-8 (eBook)
DOI 10.1007/978-3-662-21637-8
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©Springer-Verlag Berlin Heidelberg 1989
Ursprunglich erschienen bei Springer-Verlag Berlin Heidelberg New York 1989
2847/3140-543210
Introduction
It is not easy to summarize -even in a volume - the results of a scientific study con
ducted by circa 30 researchers, in four different research institutions, though cooperating
between them and jointly with the International Institute for Applied Systems Analysis,
but working part-time, sponsored not only by IIASA's national currency funds, but also
by several other research grants in Poland. The aims of this cooperative study were de
fined broadly by its title Theory, Software and Testing Examples for Decision Support
Systems. The focusing theme was the methodology of decision analysis and support
related to the principle of reference point optimization (developed by the editors of
this volume and called also variously: aspiration-led decision support, quasi-satisfying
framework of rationality, DIDAS methodology etc.). This focusing theme motivated
extensive theoretical research - from basic methodological issues of decision analysis,
through various results in mathematical programming (in the fields of large scale and
stochastic optimization, nondifferentiable optimization, cooperative game theory) mo
tivated and needed because of this theme, through methodological issues related to
software development to issues resulting from testing and applications. We could not
include in this volume all papers - theoretical, methodological, appiied, software manu
als and documentation - written during this cooperative study. The selection principle
applied for this volume was to concentrate on advances of theory and methodology,
related to the focusing theme, to supplement them by experiences and methodological
advances gained through wide applications and tests in one particular application area
- the programming of development of industrial structures in chemical industry, and
finally to give a verr short description of various software products developed in the
contracted study agreement. The material of this volume is thus divided correspond
ingly into three unequal parts (it must be noted, however, that the last and shortest
part corresponds to the most extensive research effort).
PART 1 is composed of 15 theoretical and methodological papers. It starts with
two more general papers, the first explaining the focusing theme of this volume and
the second describing the methodology of decision analysis in decision support systems
(DSS) of the DID AS family. The following five papers are devoted to various aspects of
linear programming: three represent innovative approaches to large-scale programming
problems and new mathematical and algorithmic results in this field, including a new
idea of decomposition of augmented Lagrangian functions for large-scale problem - mo
tivated and related to the work on DSS, next addresses basic problems of multiobjective
dynamic trajectory optimization, a further one presents a more detailed methodological
guide to a multiobjective mathematical programming package HYBRID. We present
such a mixture of results on purpose, to show the broad scope of the study, its com-
IV
ponents of _mathematical theory, components of methodological value and an example
of methodological background for a software package. A further four papers combine
two themes: the use of two reference levels for multiobjective analysis and optimization
and the issues of nonlinear optimization in decision-support (starting with differentiable
approximations and issues of symbolic differentiation of models and combining with ad
vances in nondifferentiable optimization). The next three papers are related to various
methodological aspects of multiobjective decision support for the case of a large num
ber of discrete alternatives and for the case of mixed linear-integer programming models
of the class of transshipment problems with facility location. The final paper of this
part reports on theoretical advances in interactive decision support for bargaining and
negotiations.
PART 2 contains six papers related to experiences in developing and using decision
support methodology for a special but rather broad task of programming the develop
ment of a processing industry - to be specific, a chosen branch of chemical industry.
The team of authors coming from Joint System Research Department of the Institute of
Automatic Control, Academy of Mining and Metallurgy, Krakow and of the Industrial
Chemical Research Institute, Warsaw, has worked on various projects for Polish govern
mental agencies, for international development agencies coordinated by UNIDO and in
cooperation with various IIASA projects and programs. They developed a dedicated
decision support system MIDA for the complicated task of multiobjective programming
of the development of an industrial structure, used this system with various;decision
makers and for various tasks within chemical industry development, in countries such as
China, Algeria, various central African countries -beside Poland. The papers summarize
their experiences in these studies and applications. They start with an overview paper
that surveys the applications, experiences and the main features of the DSS MIDA,
then continue with a paper on the basic model of an industrial structure used in this
system, with three papers discussing the methodology of interactive decision analysis in
this application area-namely, the problems of multiobjective evaluation of an industrial
structure, of hierarchical aspects of this evaluation related to various goals and dynamic
development, of spatial allocation and investment scheduling aspects. The final paper of
this part describes in more detail the architecture and functions of the DSS MIDA and
contains a kind of short manual for this system. Although we tried to exclude software
manuals from this volume, since it is devoted mostly to theoretical and methodological
issues together with lessons from applications, an exception seems to be justified in
the case of the system MIDA, because of the wide range of actual applications of this
system: giving a shortened manual illustrates best the inside working aspects of this
important and widely tested system.
PART 3 contains short descriptions of software. Following the principles of compo
sition of this volume, we do not include any other manuals, but only short executive
summaries and very general descriptions of eight software systems. They comprise four
prototype DSS:
• IAC-DIDAS-1-for multiobjective linear and linear dynamic models,
• IAC-DIDAS-N- for nonlinear models, with symbolic model differentiation,
• DISCRET - for the case of a large number of discrete alternatives,
v
• DIN AS- for multiobjective mixed programming models of the type of transship
ment problems with facility location;
and three multiobjective mathematical programming systems that can be used when
building dedicated DSS:
• HYBRID - for dynamic linear and linear-quadratic models, with a non-simplex
solver of augmented Lagrangian type,
• PLP and POSTA N-described together because both are extensions of the MINOS
system from Stanford Optimization Laboratory: one towards handling multiob
jective problems via reference point optimization, second towards various aspects
of post-optimal analysis in this widely used optimization system,
• MCBARG - for supporting bargaining and negotiation.
Neither of these software systems is as widely tested and applied as the DSS MIDA
described in Part 2, but all of them contain testing and demonstrative examples as well
as some methodological and software developments that might make them interesting
for other researchers working in this field.
Table of Contents
Introduction iii
Part 1: Theory and Methodology
1
Decision Support Systems Using 3
Reference Point Optimization
Andrzej Lewandowski, Andrzej P. Wierzbicki
Decision Support Systems of DIDAS Family 21
(Dynamic Interactive Decision Analysis & Support)
Andrzej Lewandowski, Tomasz Kreglewski, Tadeusz Rogowski,
Andrzej P. Wierzbicki
Modern Techniques for Linear Dynamic 48
and Stochastic Programs
Andrzej Ruszczynski
A Sensitivity Method for Solving Multistage 68
Stochastic Linear Programming Problems
Jacek Gondzio, Andrzej Ruszczynski
Regularized Decomposition and Augmented Lagrangian· 80
Decomposition for Angular Linear Programming Problems
Andrzej Ruszczynski
Dynamic Aspects of Multiobjective Trajectory Optimization 92
in Decision Support Systems
Tadeusz Rogowski
Mathematical Programming Package HYBRID 106
Marek Makowski, Janusz S. Sosnowski
VIII
Safety Principle in Multiobjective Decision Support 145
in the Decision Space Defined by Availability of Resources
Henryk Gorecki, Andrzei M.J. Skulimowski
Nonlinear Optimization Techniques 158
in Decision Support Systems
Tomasz Kreglewski
Nonlinear Computer Models- 172
Issues of Generation and Differentiation
Jerzy Paczynski
Issues of Effectiveness Arising in the Design of a System 180
of Nondifferentiable Optimization Algorithms
Krzysztof C. Kiwiel, Andrzei Stachurski
A Methodological Guide to the Decision Support System 193
DISCRET for Discrete Alternatives Problems
Janusz Maichrzak
A Generalized Reference Point Approach 213
to Multiobjective Transshipment Problem with Facility Location
Wlodzimierz Ogryczak, Krzysztof Studzinski, Krystian Zorychta
Solving Multiobjective Distribution- 230
Location Problems with the DINAS System
Wlodzimierz Ogryczak, Krzysztof Studzinski, Krystian Zorychta
Towards Interactive Solutions in a Bargaining Problem 251
Piotr Bronisz, Lech Krus, Andrzei P. Wierzbicki
Part 2: Applications and Experiences
269
MIDA: Experience in Theory, Software and Application 271
of DSS in the Chemical Industry
Jerzy Kopytowski, Maciei Zebrowski
IX
Basic Model of an Industrial Structure 287
Grzegorz Dobrowolski, Maciej Zebrowski
Multiobjective Evaluation of Industrial Structures 294
Maciej Zebrowski
Hierarchical Multiobjective Approach 310
to a Programming Problem
Grzegorz Dobrowolski, Maciej Zebrowski
Spatial Allocation and Investment Scheduling 322
in the Development Programming
Maciej Skocz, Maciej Zebrowski, Wieslaw Ziembla
Architecture and Functionality of MIDA 339
Grzegorz Dobrowolski, Tomasz Rys
Part 3. Short Software Descriptions
371
IAC-DIDAS-L - A Dynamic Interactive Decision Analysis 373
and Support System for Multicriteria Analysis of Linear and Dynamic
Linear Models on Professional Microcomputers
Tadeusz Rogowski, Jerzy Sobczyk, Andrzej P. Wierzbicki
HYBRID - A Mathematical Programming Package 376
Marek Makowski, Janusz S. Sosnowski
IAC-DIDAS-N - A Dynamic Interactive Decision Analysis 378
and Support System for Multicriteria Analysis of Nonlinear Models
Tomasz Kreglewski, Jerzy Paczynski, Janusz Granat,
Andrzej P. Wierzbicki
DISCRET - An Interactive Decision Support System 382
for Discrete Alternatives Multicriteria Problems
Janusz Majchrzak
Description:It is not easy to summarize -even in a volume -the results of a scientific study con ducted by circa 30 researchers, in four different research institutions, though cooperating between them and jointly with the International Institute for Applied Systems Analysis, but working part-time, sponsored
