Scoring Methods as a Tool for Business Decision Justification in Logistics and Investment Projects

Анотація

The article examines the key aspects of effective investing in modern conditions, with an emphasis on the need to minimize risks and strive for maximum profit. The study explores the possibilities of applying scoring methodologies as a tool for substantiating business decisions in the fields of logistics and investment projects. The focus is placed on minimizing risks and improving the efficiency of supply chain management and investment activities. Both quantitative and qualitative evaluation methods are considered, along with their advantages and limitations in managerial decision-making within logistics systems. Particular attention is paid to scoring models that make it possible to comprehensively evaluate projects according to the criteria of “team,” “market,” “product/service,” and “risks,” as well as the adaptation of these models to logistics processes (carrier selection, warehouse assessment, route efficiency). The proposed methodology provides a more substantiated decision-making process and helps reduce uncertainty in a dynamic environment. The article has practical significance for managers, investors, and logistics specialists who aim to improve planning, risk management, and strategic development processes. Scoring methodologies, as well as quantitative and qualitative methods for evaluating investment projects, are examined. The authors discuss their advantages, such as ease of use, speed, and versatility, as well as disadvantages, including the limited range of criteria considered in the evaluation and the tendency to rank projects solely by numerical indicators. The article provides valuable insights for investors seeking to understand and evaluate investment projects in a changing economic environment, with an emphasis on the Ukrainian context. The authors highlight the importance of careful risk and prospect analysis, assessment of market trends, and identification of potential opportunities for successful investment. Quantitative methods, such as discounted cash flow and the real options method, are powerful tools, but they require accurate forecasts and may be difficult to apply due to external factors and risks. Qualitative methods, such as expert evaluations and the Analytic Hierarchy Process (AHP), make it possible to take into account the human factor and intuition, but they can be subjective and dependent on the experience and perspectives of experts. The authors emphasize that to achieve the best results, it is important to combine quantitative and qualitative methods to ensure a comprehensive approach to evaluating investment projects. The article also examines methodologies used to substantiate business decisions, along with a classification of risks and principles of their calculation. A simplified scoring methodology, KRPR, is proposed, which allows investors to evaluate four key criteria of an investment project: team, market, product, and risk. The authors propose a formula for calculating the score, which incorporates the evaluation of these criteria and a risk coefficient.

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