One approach to the design of an optimization model for selection of the development strategy

Abstract

This paper presents an approach to the design of an optimization model for selection of the development strategy in the industry of cutting tools. The paper focuses on analyzing and defining criteria for the formation of multiple-criteria model for ranking of investment proposals. The analysis was performed in specific and unfavorable economic circumstances: a relatively small amount of available capital, dependence on imported materials and technology equipment, unfavorable balance of foreign trade. This paper presents an example of multi criteria ranking of six development programs for specific conditions in the production of cutting tools.