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A Selection Method for Capital Budgeting Projects with Quality Function Deployment

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  • URLhttps://db.koreascholar.com/Article/Detail/244939
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대한안전경영과학회지 (Journal of Korea Safety Management & Science)
대한안전경영과학회 (Korea Safety Management & Science)
초록

The purpose of this paper is to describe a new analytic method of capital budgeting projects that takes into account both customer wants and competitor's status and to give decision makers a tool for goal setting and planning for technology. This model, which is based on quality function deployment(QFD), has used the analytic hierarchy process(AHP) to determine the intensity of the relationship between the variables involved in each matrix of the model and the 0-1 integer programming to determine the allocation of funds to various technological projects. This paper also proposes how to calculate the new weight of columns to consider various strength levels of roof matrix, representing the correlation among the quality characteristics, using Lyman's normalization procedure. To compare this model with Partovi's model, I adapt the same example which is suggested by Partovi and I show that the value of object function, has maximization problem, in this model is larger than that in Partovi's model.

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