A multi-criteria decision-makin model to choose the best productive projects in the rural Mexican A multi-criteria decision-makin model to choose the best productive projects in the rural Mexican

Abstract

Objective: Propose a multicriteria model for the selection and prioritization of projects that will be financed by competitive public funds.

Design/methodology/approach: The methodological proposal includes the use of two multicriteria decision tools: AHP and TOPSIS. The model determines a series of criteria that must be considered to evaluate the investment proposals and, with the help of the AHP tool, weighs these criteria, because not all of them have the same importance when evaluating. To select the best proposals, the TOPSIS tool has been used. A demonstration of the application of these methods in a hypothetical problem is presented.

Results: The proposed model has been applied to a practical case and it was found that the tool allows the prioritization of the proposals so that the best evaluated projects, according to the established set of criteria, must be the first to be financed.

Limitations on study/implications: Although the model improves the process of selecting the best projects, the process becomes more complex, requiring the evaluator a greater amount of time in the evaluation.

Findings/conclusions: This methodology can be replicable to any system of evaluation of projects where multiple investment criteria are present, but it is necessary that the financing agency has clarity in its objectives.