Multi crteria decision making and its applications : a literature review

This paper presents current techniques used in Multi Criteria Decision Making (MCDM) and their applications. Two basic approaches for MCDM, namely Artificial Intelligence MCDM (AIMCDM) and Classical MCDM (CMCDM) are discussed and investigated. Recent articles from international journals related to MCDM are collected and analyzed to find which approach is more common than the other in MCDM. Also, which area these techniques are applied to. Those articles are appearing in journals for the year 2008 only. This paper provides evidence that currently, both AIMCDM and CMCDM are equally common in MCDM

Linking objective and subjective modeling in engineering design through arc-elastic dominance

Engineering design in mechanics is a complex activity taking into account both objective modeling processes derived from physical analysis and designers’ subjective reasoning. This paper introduces arc-elastic dominance as a suitable concept for ranking design solutions according to a combination of objective and subjective models. Objective models lead to the aggregation of information derived from physics, economics or eco-environmental analysis into a performance indicator. Subjective models result in a confidence indicator for the solutions’ feasibility. Arc-elastic dominant design solutions achieve an optimal compromise between gain in performance and degradation in confidence. Due to the definition of arc-elasticity, this compromise value is expressive and easy for designers to interpret despite the difference in the nature of the objective and subjective models. From the investigation of arc-elasticity mathematical properties, a filtering algorithm of Pareto-efficient solutions is proposed and illustrated through a design knowledge modeling framework. This framework notably takes into account Harrington’s desirability functions and Derringer’s aggregation method. It is carried out through the re-design of a geothermal air conditioning system

Development, test and comparison of two Multiple Criteria Decision Analysis(MCDA) models: A case of healthcare infrastructure location

When planning a new development, location decisions have always been a major issue. This paper examines and compares two modelling methods used to inform a healthcare infrastructure location decision. Two Multiple Criteria Decision Analysis (MCDA) models were developed to support the optimisation of this decision-making process, within a National Health Service (NHS) organisation, in the UK. The proposed model structure is based on seven criteria (environment and safety, size, total cost, accessibility, design, risks and population profile) and 28 sub-criteria. First, Evidential Reasoning (ER) was used to solve the model, then, the processes and results were compared with the Analytical Hierarchy Process (AHP). It was established that using ER or AHP led to the same solutions. However, the scores between the alternatives were significantly different; which impacted the stakeholders‟ decision-making. As the processes differ according to the model selected, ER or AHP, it is relevant to establish the practical and managerial implications for selecting one model or the other and providing evidence of which models best fit this specific environment. To achieve an optimum operational decision it is argued, in this study, that the most transparent and robust framework is achieved by merging ER process with the pair-wise comparison, an element of AHP. This paper makes a defined contribution by developing and examining the use of MCDA models, to rationalise new healthcare infrastructure location, with the proposed model to be used for future decision. Moreover, very few studies comparing different MCDA techniques were found, this study results enable practitioners to consider even further the modelling characteristics to ensure the development of a reliable framework, even if this means applying a hybrid approach

Fuzzy Transfer Pricing World: On the Analysis of Transfer Pricing with Fuzzy Logic Techniques

The arm’s length analysis of international transfer prices of multinational firms lacks sound methodological approach of the so-called function and risk analysis. In practice, such analyses are descriptive. Derived from Zadeh’s mathematical theory of fuzzy sets, this paper investigates a quantitative approach to identify the function and risk pattern of related parties of multinational companies. We illustrate our fuzzy logic approach with a simple case.

Risk assessment of blasting operations in open pit mines using FAHP method

Purpose. In the mining blasting operation, fragmentation is the most important output. Fly rock, ground vibration, air blast, and environmental effects are detrimental effects of blasting operations. Identifying and ranking the risk of blasting operations is considered as the most important stage in project management. Methods. In this research, the problem of identifying and ranking the factors constituting the risk in blasting operations is considered with the methodology of the Fuzzy Analytical Hierarchy Process (FAHP). Criteria and sub-criteria have been determined based on historical research studies, field studies, and expert opinions for designing a hierarchical process. Findings. Based on FAHP scores, non-control of the sub-criterion of health and safety (C3), blast operation results (C18) and knowledge, and skill and staffing (C2) with a score of 0.377, 0.334, and 0.294 respectively are the most effective sub-criterion for the creation of blasting operations risk. According to the score, the sub-criterion C18 is the most effective sub-criterion in providing the blasting operations risk. Effects and results of blasting operations (D8), with a score of 0.334 as the most effective criterion, and natural hazards (D10), with a score of 0.015, were the last priorities in the factors causing blasting operations risk. Originality. Regarding the risk rating of blasting operations, the control of the sub-criteria C3, C18, and C2, and the D8 criterion, is of particular importance in reducing the risk of blasting operations and improving project management. Practical implications. The evaluation of human resource performance and increase in the level of knowledge and skills and occupational safety and control of all outputs of blasting operations is necessary. Therefore, selecting the most important project risks and taking actions to remove them is essential for risk management.Мета. Визначення ризиків проведення вибухових робіт та їх оцінка на основі використанням нечіткого методу аналізу ієрархій (НМАІ) для покращення управління якістю проектів. Методика. В рамках даного дослідження, проблеми визначення та оцінки ризиків вибухових робіт розглядалися із застосуванням нечіткого методу аналізу ієрархій. На базі аналізу історичних даних і польового дослідження з урахуванням експертних оцінок були визначені критерії та підкритерії для побудови ієрархій. Результати. За результатами НМАІ, неконтролюючий підкритерій здоров’я та безпеки (С3), підкритерій результатів вибухових робіт (С18), знань, умінь і кадрів (С2) зі значеннями 0.377, 0.334 і 0.294 відповідно найбільш ефективні в появі ризику проведення вибухових робіт. Підкритерій С18 чинить найбільший вплив на ризик проведення вибухових робіт. Критерій результатів і наслідків вибухових робіт (D8) з найефективнішим значенням 0.334 та критерій природних катастроф (D10) зі значенням 0.015 є останніми пріоритетами серед чинників, які визначають ризик проведення вибухових робіт. Наукова новизна. Отримав доповнення та подальший розвиток науково-методичний підхід до визначення ризиків при проведенні вибухових робіт, заснований на їх ранжуванні з використанням системи виявлених критеріїв і підкритеріїв методом НМАІ. Практична значимість. Для успішного керування проектом важливо визначати найсерйозніші ризики проекту й вжити заходів щодо їх усунення. Відносно ранжирування ризиків проведення вибухових робіт управління підкритеріями C3, C18 і C2, а також критерієм D8, особливо важливо для зниження цих ризиків та покращення якості управління проектом.Цель. Определение рисков проведения взрывных работ и их оценка на основе использования нечеткого метода анализа иерархий (НМАИ) для улучшения управления качеством проектов. Методика. В рамках данного исследования, проблемы определения и оценки рисков взрывных работ рассматривались с применением нечеткого метода анализа иерархий. На базе анализа исторических данных и полевого исследования с учетом экспертных оценок были определены, критерии и подкритерии для построения иерархий. Результаты. По результатам НМАИ, неконтролирующий подкритерий здоровья и безопасности (С3), подкритерий результатов взрывных работ (С18), знаний, умений и кадров (С2) со значениями 0.377, 0.334 и 0.294 соответственно наиболее эффективны в появлении риска проведения взрывных работ. Подкритерий С18 оказывает самое большое влияние на риск проведения взрывных работ. Критерий результатов и последствий взрывных работ (D8) с самым эффективным значением 0.334 и критерий природных катастроф (D10) со значением 0.015 являются последними приоритетами среди факторов, которые определяют риск проведения взрывных работ. Научная новизна. Получил дополнение и дальнейшее развитие научно-методический подход к определению рисков при проведении взрывных работ, основанный на их ранжировании с использованием системы выявленных критериев и подкритериев методом НМАИ. Практическая значимость. Для успешного руководства проектом важно определять самые серьезные риски проекта и предпринять действия по их устранению. В отношении ранжирования рисков проведения взрывных работ управление подкритериями C3, C18 и C2, а также критерием D8, особенно важно для снижения этих рисков и улучшения руководства проектом.The authors would like to thank Mining Engineering Department, Islamic Azad University (South Tehran Branch) for supporting this research

A three-stage methodology for design evaluation in product development

In order to remain competitive in today's technologically driven world, the faster and more efficient development of innovative products has become the focus for manufacturing companies. In tandem with this, design evaluation plays.a critical role in the early phases of product development, because it has significant impact on the downstream development processes as well as on the success of the product being developed. Owing to the pressure of primary factors, such as customer expectations, technical specifications and cost and time constraints, designers have to adopt various techniques for evaluating design alternatives in order to make the right decisions as early as possible. In this work, a novel three-stage methodology for design evaluation has been developed. The preliminary stage screens all the criteria from different viewpoints using House of Quality (HoQ). The second stage uses a Fuzzy-Analytical Hierarchy Process (Fuzzy-AHP) to obtain the alternatives weighting and the final stage verifies the ranking of the alternatives by a Rough-Grey Analysis. This method will enable designers to make better-informed decisions before finalising their choice. Case examples from industry are presented to demonstrate the efficacy of the proposed methodology. The result of the examples shows that the integration of Fuzzy-AHP with H0Q and Rough-Grey Analysis provides a novel alternative to existing methods of design evaluation

Effectiveness of R&D project selection in uncertain environment: An empirical study in the German automotive supplier industry

This paper presents results of an empirical large-scale study on uncertainty reduction of R&D projects and R&D project selection. The empirical field is the German automotive supplier industry. We explore R&D project selection practices in this specific industry and briefly contrast our findings with the academic research and management literature in this field. We concentrate on answering three research questions (with focus on questions no. 1 and 2): I. Which information and related uncertainties are crucial for the product selection decision to the R&D decision makers? II. How do R&D decision makers today cope with typical challenges related to reducing uncertainty? Where do they face major problems and how effective are they? III. What are major implications for managing the Fuzzy Front End (FFE) of innovation process in industry practice and respectively for further academic research in this field? Key findings are that on the one hand certainty about fields of product applications, target markets and production feasibility are most important criteria for initial product selection decisions. On the other hand market and cost related uncertainties (e.g. sales volume, product price, cost per unit) cannot be satisfyingly reduced in practice before project approval for development or definite termination of projects. Although different uncertainty profiles exist within the process of project evaluation, most companies do not systematically choose available product selection methods and tools according to specific uncertainty situations. Intuition still plays a major role in R&D product selection. Some first conclusion drawn from this research are: A sufficient level of resources (including financial and methodological know-how), a systematic use of suitable project selection instruments, and a fit with the company specific as well as the OEMs' product/brand strategies can be potential levers for more effective uncertainty reduction before product decision. --

Seleksi Gudang Distribusi pada Rantai Pasok Pelumas Menggunakan Multi Criteria Decision Making

High competition in the lubricants business results in customer services become a benchmark for the success of this business in Indonesia, One of the services provided is pegudangan system that is part of the supply chain system. The existence of obstacles in the process of handling in and out in a warehouse handling PT Petronas Niaga Indonesia resulted in the need for companies to choose a new warehouse as an alternative lubricants. The number of alternatives which can be used warehouse forced the company to make the process of pre-qualification and qualification process to obtain alternative lubricants warehouse priority desired by the company. In the pre-qualification process lubricants warehouse alternative screening process is done by using the weighted product method to reduce warehouse alternative lubricants in the process of qualifying criteria based lubricants warehouse needs. In the process of qualifying the selection process is then performed by Analytical method Hirarchy Process (AHP) using five criteria: cost, infrastructure, market, safety, and the macro environment. Each of these criteria are translated into sub-criteria. The results obtained qualification process priority is the best lubricant warehouse is PT GAC Samudra Logistics with the highest weight, followed by PT Wiraswasta Gemilang Indonesia and PT Jaya Puninar with weights respectively and PT GAC Samudra Logistics superior in infrastructure and safety criteria, while PT Wiraswasta Gemilang Indonesia superior at cost and market criteria

Analisis Pemilihan Supplier pada Proses Procurement di PT. M3 Ketapang Sejahtera dengan Metode Fuzzy Ahp dan Software Smartpicker

PT. M3 Ketapang Sejahtera adalah Perusahaan dalam bidang oil and gas yang memiliki sistem operasional pada proses bisnisnya sehingga proses pengadaan (procurement) yang dilakukan selalu berbeda permintaan maupun supplier pada setiap kasusnya. Dengan menggunakan metode Fuzzy Analytical Hierarchy Process, peneliti akan melakukan perhitungan pembobotan untuk kriteria yang digunakan dalam proses procurement tersebut. Kemudian setelah didapatkan bobot untuk tiap kriteria tersebut maka dapat dilakukan proses pemilhan supplier dengan bantuan software smartpicker berdasarkan data penawaran dari supplier. Berdasarkan hasil pengolahan data yang dilakukan dapat disimpulkan bahwa urutan kriteria yang paling berkepentingan dalam proses procurement PT. M3 Ketapang Sejahtera adalah kriteria kualitas produk dengan nilai bobot 0,2714, reliabilitas barang dengan nilai bobot 0,2430, harga dengan nilai bobot 0,1628, tenggang waktu pembayaran dengan nilai bobot 0,1164, lead time dengan nilai bobot 0,0929, potongan harga dengan nilai bobot 0,0740, dan ketepatan jumlah pengiriman dengan nilai bobot 0,0296. Kemudian dengan menggunakan bantuan software smartpicker maka akan memudahkan dalam sistem pengambilan keputusan dimana software akan menampilkan pilihan alternatif supplier beserta bobot alternatifnya