Improving the Efficiency of Investment Project Selection Mechanisms at the Enterprise Cover Image

Розвиток методу аналізу ієрархій як механізму вибору інвестиційного проєкту на підприємстві
Improving the Efficiency of Investment Project Selection Mechanisms at the Enterprise

Author(s): Serhii Nisfoian, Nataliya Sysolina, Hryhorii Savelenko
Subject(s): Economy, Business Economy / Management, Micro-Economics, Accounting - Business Administration, Socio-Economic Research
Published by: Центральноукраїнський національний технічний університет
Keywords: investment project; method of analysis of hierarchies; matrices; enterprises;

Summary/Abstract: It is important for companies to choose the optimal project, considering the impact of the most important criteria on the common goal.The article investigates the mechanism of choosing the optimal of the three proposed investment projects at the production enterprise: production of foam blocks, production of paving slabs, production of concrete mix.To solve the problem of choosing the optimal project, the method of hierarchy analysis proposed by T. Saati was used. The method of analysis of hierarchies is considered to be a general theory of measurement, it is used to derive a scale from pairwise comparisons in multilevel hierarchical structures. Comparisons can be made on the basis of real or approximate values. The method is widely used in tasks related to multicriteria decision making, strategic planning, forecasting, etc.The method of hierarchy analysis allows to quantitatively and qualitatively compare alternative projects. The criteria for comparison were: the total amount of investment required for the project, product demand, expected profitability and payback period of the project.A multicriteria matrix model based on the method of hierarchy analysis is constructed. The relationship between the criteria was established and the consistency of results was assessed at all levels of the model. According to the results of the analysis, the optimal project was determined, which has the greatest value of the component of the vector of global priorities - 0.56529 (for the project involving the production of concrete mixtures). For this project, the criteria of "Demand" and "Profit" have the highest priorities of the vector of alternatives.The application of the method of analysis of hierarchies allows to reduce the amount of before the project work and numerically confirm the choice of the project.

  • Issue Year: 2020
  • Issue No: 5 (38)
  • Page Range: 228-237
  • Page Count: 10
  • Language: Ukrainian