A FITRADEOFF-BASED APPROACH FOR STRATEGIC DECISIONS ON MILITARY BUDGET

ABSTRACT

This paper presents an actual application of the FITradeoff method to support strategic decisions on military budgets. Using Optimization Techniques and a particular Multicriteria Decision Aid method to assess budget allocation efficiency, a model was built for the Brazilian Defense Ministry. A case study of the Brazilian Navy is described in this paper, whereby this model was used. The focus is on the adaptations of FITradeoff necessary to make it suitable for different groups of decision-makers and staff, performing different tasks on the process. The FITradeoff proposal allowed a group decision with different levels suitable to the military context and high-level strategic decisions. The use of multicriteria in this approach provides a meaningful utility measure. This provides a score value representing the desirability of an alternative, in terms of its attainment of the institution’s strategic objectives. The approach contributed to an approximate gain of 15% in budget efficiency in 2022.

Keywords:
FITradeoff; military; strategic decisions