A comparative study of multiple-criteria decision-making methods under stochastic inputs

This paper presents an application and extension of multiple-criteria decision-making (MCDM) methods to account for stochastic input variables. More in particular, a comparative study is carried out among well-known and widely-applied methods in MCDM, when applied to the reference problem of the selection of wind turbine support structures for a given deployment location. Along with data from industrial experts, six deterministic MCDM methods are studied, so as to determine the best alternative among the available options, assessed against selected criteria with a view toward assigning confidence levels to each option. Following an overview of the literature around MCDM problems, the best practice implementation of each method is presented aiming to assist stakeholders and decision-makers to support decisions in real-world applications, where many and often conflicting criteria are present within uncertain environments. The outcomes of this research highlight that more sophisticated methods, such as technique for the order of preference by similarity to the ideal solution (TOPSIS) and Preference Ranking Organization method for enrichment evaluation (PROMETHEE), better predict the optimum design alternative

Analysis of the potentials of multi criteria decision analysis methods to conduct sustainability assessment

Sustainability assessments require the management of a wide variety of information types, parameters and uncertainties. Multi criteria decision analysis (MCDA) has been regarded as a suitable set of methods to perform sustainability evaluations as a result of its flexibility and the possibility of facilitating the dialogue between stakeholders, analysts and scientists. However, it has been reported that researchers do not usually properly define the reasons for choosing a certain MCDA method instead of another. Familiarity and affinity with a certain approach seem to be the drivers for the choice of a certain procedure. This review paper presents the performance of five MCDA methods (i.e. MAUT, AHP, PROMETHEE, ELECTRE and DRSA) in respect to ten crucial criteria that sustainability assessments tools should satisfy, among which are a life cycle perspective, thresholds and uncertainty management, software support and ease of use. The review shows that MAUT and AHP are fairly simple to understand and have good software support, but they are cognitively demanding for the decision makers, and can only embrace a weak sustainability perspective as trade-offs are the norm. Mixed information and uncertainty can be managed by all the methods, while robust results can only be obtained with MAUT. ELECTRE, PROMETHEE and DRSA are non-compensatory approaches which consent to use a strong sustainability concept, accept a variety of thresholds, but suffer from rank reversal. DRSA is less demanding in terms of preference elicitation, is very easy to understand and provides a straightforward set of decision rules expressed in the form of elementary “if … then …” conditions. Dedicated software is available for all the approaches with a medium to wide range of results capability representation. DRSA emerges as the easiest method, followed by AHP, PROMETHEE and MAUT, while ELECTRE is regarded as fairly difficult. Overall, the analysis has shown that most of the requirements are satisfied by the MCDA methods (although to different extents) with the exclusion of management of mixed data types and adoption of life cycle perspective which are covered by all the considered approaches

Incorporating stakeholders’ knowledge in group decision-making

International audienc

MULTI CRITERIA DECISION MAKING MODELS: AN OVERVIEW ON ELECTRE METHODS

In portfolio analysis, there are a few models that can be used. Therefore, the aim of this paper is to make an overview on multi criteria decision making models, in particular, on ELECTRE methods. We discuss the different versions of ELECTRE, which exist and why they exist. So, when speaking about ELECTRE methods structure, we have to consider two main procedures: construction of one or several outranking relation(s) procedure, and exploitation procedure. In the exploitation procedure, recommendations are elaborated from the results obtained in the first phase. The nature of the recommendation depends on the problematic: choosing, ranking or sorting. Each method is characterized by its construction and exploitation procedure. For choice problem, we can apply ELECTRE I, ELECTRE Iv, and ELECTRE IS; for ranking problem, we can apply ELECTRE II, ELECTRE III, ELECTRE IV and ELECTRE-SS; and for sorting problem we can apply ELECTRE TRI. Finally, some failings on ELECTRE methods assumptions are discussed, for instance, rank reversals. So, when analyzing portfolio management decision problem, the literature suggests AHP method and PROMETHEE family.CAPM; decision problem; multi criteria decision making models; ELECTRE family; ELECTRE rank reversals

A review of multi-criteria decision making methods for enhanced maintenance delivery

Conventionally there is a strong relation between manufacturing and services in complex engineering industries. For companies which aim to last in the competitive manufacturing market choosing appropriate decision making methods to improve their maintenance delivery has a vital role. The aim of this paper is to review Multi Criteria Decision Making (MCDM) models, evaluate each method and do a critical comparison to assess them from a maintenance management point of view. The first section of this paper reviews MCDM methods in different literature, and then the second part develops a set of criteria to classify different techniques. At the end methods are compared based on developed criteria. This paper assesses different MCDM models, and provides a framework to select approaches for maintenance management

Objective Competitiveness Ranking amongst EU Regions (Objective Method for Quantifying Regional Competitiveness - a case study applied to EU15 Regions)

Nowadays the key target of Cohesion Policy is to promote the creation of conditions to improve the growth, and to increase the factors that lead to a real convergence (Economic and Social Cohesion). An important group of these factors is found when considering the competitivity of a Region that implies, (even whitout existintg a clear definition), to consider at the same time two different levels: - The first one through the specific factors to improve the development of the resident managerial weave (Innovation, Research & Development, enterprises nets, labour market, training, support in the use of new technologies, servicies to entreprises, etc.). – The second one, improving the enviromental conditions for the development of such an managerial activity (Transport and comunication infrastructures, environment and sustainable developpment ,use of renewable energies, etc.) The objetcive of the present paper is to propose an objective way to consider the totalitiy of factors simultaneously, in order to obtain a ranking of the of the regional competitivity, and to study his changes in the time. For this, it will be used the data base “REGIO” and techniques of ranking belonging to multicriteria decision making. The analyzed period is from 1987 to 2002 which shows interesting results mainly when compared with other analyses carried out.

A Methodology for the Selection of Multi-Criteria Decision Analysis Methods in Real Estate and Land Management Processes

Real estate and land management are characterised by a complex, elaborate combination of technical, regulatory and governmental factors. In Europe, Public Administrators must address the complex decision-making problems that need to be resolved, while also acting in consideration of the expectations of the different stakeholders involved in settlement transformation. In complex situations (e.g., with different aspects to be considered and multilevel actors involved), decision-making processes are often used to solve multidisciplinary and multidimensional analyses, which support the choices of those who are making the decision. Multi-Criteria Decision Analysis (MCDA) methods are included among the examination and evaluation techniques considered useful by the European Community. Such analyses and techniques are performed using methods, which aim to reach a synthesis of the various forms of input data needed to define decision-making problems of a similar complexity. Thus, one or more of the conclusions reached allow for informed, well thought-out, strategic decisions. According to the technical literature on MCDA, numerous methods are applicable in different decision-making situations, however, advice for selecting the most appropriate for the specific field of application and problem have not been thoroughly investigated. In land and real estate management, numerous queries regarding evaluations often arise. In brief, the objective of this paper is to outline a procedure with which to select the method best suited to the specific queries of evaluation, which commonly arise while addressing decision-making problems. In particular issues of land and real estate management, representing the so-called “settlement sector”. The procedure will follow a theoretical-methodological approach by formulating a taxonomy of the endogenous and exogenous variables of the multi-criteria analysis method

A decision support system for road safety analysis

The aim of this paper is to develop a procedure for supporting public administrations in planning safety interventions on the road network. Road safety conditions depend on several factors, represented by a variety of quantitative and qualitative data, including: number of traffic accidents, traffic flow, lane width, shoulder width, road curvature and grade, access-point density, road markings and road signs (Mooren et al., 2012; OECD, 2002). By analysing a set of given roads or different sections of the same road, each with specific safety conditions, this methodology allows to determine which sections require interventions to improve safe driving conditions. Specifically, the multicriteria analysis technique is used in decision-making processes to support the choice among different alternatives in complex problems (Fadda, 2002). Among the different multicriteria techniques available, the Concordance Analysis will be used here. This paper proposes a unique modelling tool that incorporates the different indicators to calculate safety conditions. The methodology has been applied to a real case study for evaluating road safety on sections of a motorway infrastructur

Economic and Social Cohesion in the EU: a critical approach

Economic and Social Cohesion is one of the principal aims of European Union according to the Treaty. Although it has a clear and rather well defined political dimension, there is not a unique definition that permits a technical definition. ¿Has an increase of Economic and Social Cohesion been observed in recent decades? ¿How could this be measured? To answer these two questions it is necessary to define, first, what is the acceptable degree of regional inequalities and, second, which could be the variables or indexes to measure it properly (not only GDP per capita). The aim of this paper is to propose new answers to the problem, using REGIO database and applying multicriteria methods. We have researched a new empirical approach to the European Cohesion and we have calculated the accomplishment of a higher Economic and Social Cohesion between the European regions. The period analysed is 1987-1999 and the results are rather shocking and suggestive, particularly compared to the ones arising from the most conventional analysis on the evolution of GDP per capita. Key words: Social and Economic Cohesion; Regional Convergence; EU Regional Policy, multicriteria methods.