Multi-Criteria Decision Making

Frontmatter

1. Introduction

Abstract

Decision making is a systematic and formal process which involves four steps: (i) identification of the problem; (ii) deriving the preferences; (iii) evaluation of alternatives; and (iv) identification of the best alternatives. The domain of decision making involves three kinds of analysis.

Jitesh J. Thakkar

2. Simple Additive Weightage (SAW)

Abstract

The first application of SAW was reported for a portfolio selection problem. It is also known as a weighted linear combination or scoring method. It is a very simple and highly preferred method used for a less complex problem environment. It calculates the priorities for each alternative by multiplying the scaled value given to the alternative with the weights of relative importance assigned by the decision makers to the attribute and finally summing up all the products for each criterion. The method is based on the weighted average.

Jitesh J. Thakkar

3. Analytic Hierarchy Process (AHP)

Abstract

Both academia and industry have witnessed a huge application of Analytic Hierarchy Process (AHP). The technique has gained significant attention in the various domains such as machine selection, supplier selection, ambulance allocation, nurse and other resource prioritization in healthcare, prioritization of academic policies. This technique which was developed in 1970 by Thomas L. Saaty is a well-known and widely popular MCDM technique.

Jitesh J. Thakkar

4. Analytic Network Process (ANP)

Abstract

With the advancement in the fields of project engineering and management, there has been an advanced shift from linear weighing to multi-criteria decision-making models (MCDM). MCDM is a technique that helps in choosing the best option among the available ones.

Jitesh J. Thakkar

5. Technique for Order Preference and Similarity to Ideal Solution (TOPSIS)

Abstract

TOPSIS is a multi-criteria decision-making tool developed by Yoon and Hwang and has been appraised by various levels of decision makers. It takes a compensatory aggregation approach for identifying the best alternative among the identified set of alternatives.

Jitesh J. Thakkar

6. Elimination Et Choice Translating Reality (ELECTRE)

Abstract

Elimination Et Choix Traduisant He realite (ELECTRE) is a decision-making method that was proposed by Bernard Roy and his team.

Jitesh J. Thakkar

7. Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE)

Abstract

Multi-criteria decision making (MCDM) has been one of the highly fertile ground for research in the domain of operational research (OR). Especially, in the last few decades, there has been rapid growth with various new methods for decision making and also improvements to existing methods being proposed continuously. MCDM problems usually deal with selection, sorting or prioritizing alternatives among a set of possible solutions.

Jitesh J. Thakkar

8. VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR)

Abstract

The VIKOR multi-criteria decision-making technique was initially proposed by S. Opricovic in 1979 which was followed by its first application in 1980. It was named VIKOR in 1990 from the Serbian: VIseKriterijumska Optimizacija I Kompromisno Resenje which stands for Multi-criteria Optimization and Compromise Solution. It is a powerful tool that can be used for various strategic decision-making problems in various environments such as social, economic or environmental. VIKOR approach consists of identifying various alternatives for a problem, establishing the priority among them and ranking them and selection of the best compromise solution based on the ranking.

Jitesh J. Thakkar

9. Decision-Making Trial and Evaluation Laboratory (DEMATEL)

Abstract

Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique was first employed by Fontela and Gabus in 1976. It has managed to solve many global complex problems in scientific, political and economic domains by considering experts’ judgements. BMI institute applied DEMATEL method to execute big and complicated project in GRC and “Science and Human Affairs Program of the Battelle Memorial Institute of Geneva”.

Jitesh J. Thakkar

10. Fuzzy Integral and Grey Relation

Abstract

The issues dominating a multiple decision-making problem are the effective evaluation of weights of criteria and correctness of alternatives versus criteria as well as aggregate decision maker's estimated ratings.

Jitesh J. Thakkar

11. Multi-objective Optimization on the Basis of Ratio Analysis Method (MOORA)

Abstract

Multi-Objective Optimization on the Basis of Ratio Analysis Method (MOORA) is developed by Brauers and Zavadskas in 2006. The method has been successfully employed for the various problems such as material selection, performance evaluation in real estate sector and contractor selection, design selection, robot selection, personnel selection, quality control, dynamic scheduling in production systems, location selection, firm selection, healthcare waste management, etc. MOORA uses a ratio system in which each response of an alternative on an objective is compared to a denominator, which is representative for all alternatives concerning that objective.

Jitesh J. Thakkar

12. Linear Programming Techniques for Multidimensional Analysis of Preference (LINMAP)

Abstract

Multi-attribute decision-making (MADM) problems are an important type of multi-criteria decision-making (MCDM) problems and are widespread in real-life decision situations.

Jitesh J. Thakkar

13. Complex Proportion Assessment Method (COPRAS)

Abstract

COPRAS method was developed in 1996 by Vilnius Gediminas Technical University scientists Zavadskas and Kaklauskas. It is actually a method of normalizing, in which we combine all indicators into a single quantitative account, that is the value of method criterion.

Jitesh J. Thakkar

14. Additive Ratio Assessment Method (ARM/ARAS)

Abstract

All new ideas and possible variants of decisions must be compared for various criteria. The problem of a decision maker consists of evaluating a finite set of alternatives in order to find the best one, to rank them from the best to the worst, to group them into predefined homogeneous classes, or to describe how well each alternative meets all the criteria simultaneously.

Jitesh J. Thakkar

15. Weighted Aggregated Sum Product Assessment (WASPAS)

Abstract

Multiple criteria decision-making (MCDM) methods can be successfully applied to rank complex alternative decisions and to achieve optimal solutions based on multiple, usually conflicting criteria. Weighted aggregated sum product assessment (WASPAS) method is preferred to the variety of available methods because of its abilities to increase the accuracy of ranking.

Jitesh J. Thakkar

16. Stepwise Weight Assessment Ratio Analysis (SWARA)

Abstract

Weight assessment is an important issue in many multi-attribute decision-making (MADM) problems. The popular weight assessment approaches include analytic hierarchy process (AHP), analytic network process (ANP), SWARA, etc. Stepwise Weight Assessment Ratio Analysis (SWARA) method is the most efficient method for criteria evaluation. It involves two important steps: the first is to prioritize the criteria by consulting experts, while the second is the weighting process.

Jitesh J. Thakkar

17. Graph Theoretic Analysis (GTA)

Abstract

Graph theory matrix is derived from the field of combinatorial mathematics which enables a decision maker to analyse and understand the system as a whole by identifying system and sub-system up to the component level.

Jitesh J. Thakkar

18. Interpretive Structural Modelling (ISM)

Abstract

The ISM procedure created by Warfield (1974) is used to break down a complex issue into simpler one with the help of knowledge and wisdom of the experts.

Jitesh J. Thakkar

19. Application of Integrated Approach of Grey AHP and Grey TOPSIS

Abstract

In this chapter, we discuss the integration of multi-criteria decision-making models, namely grey analytical hierarchy process (AHP) and grey technique for order preference by similarity to the ideal solution (TOPSIS). These approaches are integrated for calculating a comprehensive risk index for the food supply chain. The integrated approach is applied for assessing the risks in food supply chain in Indian context. The necessary input are collected from the experts in the domain of food supply chain. Through this example, we illustrate how an integrated methodology involving AHP and TOPSIS can be applied to quantify risk and generate critical insights.

Jitesh J. Thakkar

20. An Application of Integrated Approach of Fuzzy FMEA and VIKOR

Abstract

Foodgrains supply chain (FSC) is affected by select critical and significant issues such as insufficient storage capacity, wastage and corruption. It is essential to have better procurement, transportation and storage facility to enhance the efficiency of foodgrains supply chain in India.

Jitesh J. Thakkar

21. An Integrated DEMATEL-ANP (DANP) MCDM Approach for Quantifying the Supply Chain Risk: A Case of Indian Petroleum Supply Chain

Abstract

This chapter demonstrates an application of an integrated approach of DEMATEL-ANP (DANP) to quantify the overall supply chain risk and hence assessing the priority values of individual risk and sub-risk drivers. A case of Indian Petroleum SC is considered as a viable study in order to demonstrate the efficacy of the proposed method.

Jitesh J. Thakkar

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