A novel multicriteria web-based decision support system to enhance resource allocation in energy companies: a portfolio selection with c-optimal PROMETHEE

Abstract

In an uncertain world, decision support systems (DSSs) are essential for effective portfolio management. Electricity companies often face challenges in allocating limited resources among competing projects, influenced by sustainability and regulatory requirements. To address these challenges, multicriteria approaches have been developed, focusing on complex issues involving outranking methods. This paper introduces a methodological advance with a novel algorithm that enhances the c-optimal PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluations) approach, resolving scaling issues inherent in the PROMETHEE V method. Our key contribution is a refined procedure for efficiently identifying and comparing c-optimal solutions while preserving the method's axiomatic integrity, ensuring the selection of the “true best” portfolio. Additionally, we present a web-based DSS designed to implement this methodology, featuring interactive visualization and sensitivity analysis tools. Freely available online, both the algorithm and DSS were validated through a case study with a Brazilian electricity company, demonstrating their practical benefits and applicability across various business contexts.