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

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

Decision-making: a laboratory-based case study in conceptual design

The engineering design process may be seen as a series of interrelated operations that are driven by decisions: each operation is carried out as the consequence of an associated decision. Hence, an effective design process relies heavily upon effective decision-making. As a consequence, supporting decision-making may be a significant means for achieving design process improvements. This thesis concentrates on how to support selection-type decision-making in conceptual engineering design. [Continues.

ELECTRE I Method Using Hesitant Linguistic Term Sets: An Application to Supplier Selection

Decision making is a common process in human activities. Every person or organization needs to make decisions besides dealing with uncertainty and vagueness associated with human cognition. The theory of fuzzy logic provides a mathematical base to model the uncertainities. Hesitant fuzzy linguistic term set (HFLTS) creates an appropriate method to deal with uncertainty in decision making. Managerial decision making generally implies that decision making process conducts multiple and conflicting criteria. Multi criteria decision analysis (MCDA) is a widely applied decision making method. Outranking methods are one type of MCDA methods which facilitate the decision making process through comparing binary relations in order to rank the alternatives. Elimination et Choix Traduisant la Réalité (ELECTRE), means elimination and choice that translates reality, is an outranking method. In this paper, an extended version of ELECTRE I method using HFLTS is proposed. Finally, a real case problem is provided to illustrate the HFLTS-ELECTRE I method

Critical review of multi-criteria decision aid methods in conceptual design phases: application to the development of a solar collector structure

At each stage of the product development process, the designers are facing an important task which consists of decision making. Two cases are observed: the problem of concept selection in conceptual design phases and, the problem of pre-dimensioning once concept choices are made. Making decisions in conceptual design phases on a sound basis is one of the most difficult challenges in engineering design, especially when innovative concepts are introduced. On the one hand, designers deal with imprecise data about design alternatives. On the other hand, design objectives and requirements are usually not clear in these phases. The greatest opportunities to reduce product life cycle costs usually occur during the first conceptual design phases. The need for reliable multi-criteria decision aid (MCDA) methods is thus greatest at early conceptual design phases. Various MCDA methods are proposed in the literature. The main criticism of these methods is that they usually yield different results for the same problem [22,23,25]. In this work, an analysis of six MCDA methods (weighed sum, weighted product, Kim & Lin, compromise programming, TOPSIS, and ELECTRE I) was conducted. Our analysis was performed via an industrial case of solar collector structure development. The objective is to define the most appropriate MCDA methods in term of three criteria: (i) the consistency of the results, (ii) the ease of understanding and, (iii) the adaptation of the decision type. The results show that TOPSIS is the most consistent MCDA method in our case

Multi-Criteria Decision Making in software development:a systematic literature review

Abstract. Multiple Criteria Decision Making is a formal approach to assist decision makers to select the best solutions among multiple alternatives by assessing criteria which are relatively precise but generally conflicting. The utilization of MCDM are quite popular and common in software development process. In this study, a systematic literature review which includes creating review protocol, selecting primary study, making classification schema, extracting data and other relevant steps was conducted. The objective of this study are making a summary about the state-of-the-art of MCDM in software development process and identifying the MCDM methods and MCDM problems in software development by systematically structuring and analyzing the literature on those issues. A total of 56 primary studies were identified after the review, and 33 types of MCDM methods were extracted from those primary studies. Among them, AHP was defined as the most frequent used MCDM methods in software development process by ranking the number of primary studies which applied it in their studies, and Pareto optimization was ranked in the second place. Meanwhile, 33 types of software development problems were identified. Components selection, design concepts selection and performance evaluation became the three most frequent occurred problems which need to be resolved by MCDM methods. Most of those MCDM problems were found in software design phase. There were many limitations to affect the quality of this study; however, the strictly-followed procedures of SLR and mass data from thousands of literature can still ensure the validity of this study, and this study is also able to provide the references when decision makers want to select the appropriate technique to cope with the MCDM problems

Multicriteria Model for the Choice of Best Battery Provider

The choice of suppliers is a matter of great importance in organizations. The cost, quality and delivery time provided to customers may depend to a large extent on this decision. This paper, therefore, describes a model applicable to a real organization, using multicriteria decision techniques to choose the best supplier of batteries. In order to establish concordance and discordance thresholds the values provided by the decision-maker of the company will be compared with those obtained by the fuzzy Analytic Hierarchy Process. Both valuations of the thresholds will be applied in the ELECTRE II technique

PROMETHEE-SAPEVO-M1 a Hybrid Approach Based on Ordinal and Cardinal Inputs: Multi-Criteria Evaluation of Helicopters to Support Brazilian Navy Operations

This paper presents a new approach based on Multi-Criteria Decision Analysis (MCDA), named PROMETHEE-SAPEVO-M1, through its implementation and feasibility related to the decision-making process regarding the evaluation of helicopters of attack of the Brazilian Navy. The proposed methodology aims to present an integration of ordinal evaluation into the cardinal procedure from the PROMETHEE method, enabling to perform qualitative and quantitative data and generate the criteria weights by pairwise evaluation, transparently. The modeling provides three models of preference analysis, as partial, complete, and outranking by intervals, along with an intra-criterion analysis by veto threshold, enabling the analysis of the performance of an alternative in a specific criterion. As a demonstration of the application, is carried out a case study by the PROMETHEE-SAPEVO-M1 web platform, addressing a strategic analysis of attack helicopters to be acquired by the Brazilian Navy, from the need to be evaluating multiple specifications with different levels of importance within the context problem. The modeling implementation in the case study is made in detail, first performing the alternatives in each criterion and then presenting the results by three different models of preference analysis, along with the intra-criterion analysis and a rank reversal procedure. Moreover, is realized a comparison analysis to the PROMETHEE method, exploring the main features of the PROMETHEE-SAPEVO-M1. Moreover, a section of discussion is presented, exposing some features and main points of the proposal. Therefore, this paper provides a valuable contribution to academia and society since it represents the application of an MCDA method in the state of the art, contributing to the decision-making resolution of the most diverse real problems.This research was funded by Centre for Research & Development in Mechanical Engineering (CIDEM), School of Engineering of Porto (ISEP), Polytechnic of Porto, Rua Dr. António Bernardino de Almeida, 431 4249-015 Porto, Portugal.info:eu-repo/semantics/publishedVersio

Combining Fuzzy MCDM with BSC Approach in Performance Evaluation of Iranian Private Banking Sector

The objective of this study is to construct an approach based on multiple criteria decision making (MCDM) and balanced scorecard (BSC) for evaluating performance for three nongovernmental Iranian's banks. Following the literature relating to banking performance and BSC concepts, experts and managers select 21 indexes for evaluation. Furthermore, fuzzy analytic hierarchy process (FAHP) calculated the relative weights of each chosen index in order to tolerate vagueness and ambiguity of information, and three MCDM analytical tools (TOPSIS, VIKOR, and ELECTRE) were adopted to rank the banking performance. The results indicate that a customer “” has the most significant BSC perspectives and the customer satisfaction “1” is the most major index in banking sector. This proposed fuzzy MCDM method combined with BSC approach is a comprehensive and up-to-date model that can be a useful and effective assessment tool