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

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 support system for project monitoring portfolio

Vallejo Antich, RA. (2010). Decision support system for project monitoring portfolio. http://hdl.handle.net/10251/8632.Archivo delegad

Decision making support for managers in innovation management: A PROMETHEE approach

The purpose of this paper is to present a decision making model as a support for selection of innovation management concept using multiple criteria decision making methods. Based on the specific nature of innovation management concepts a novel decision making model was designed. Ten defined innovation management concepts are firstly evaluated using set of criteria, which priorities are expertly evaluated using Saaty method and then the PROMETHEE outranking method is used for evaluating and selecting of innovation management concepts. To apply this model in the practice the Visual PROMETHEE software tool is incorporated to the model. The model was applied on a large manufacturing company. Using our approach in this company, the concept of value analysis was selected as the best. This study is limited for decision making processes in large companies. The results of Saaty method are based on expert but subjective assessment and therefore relevant for this particular company at that particular time. In addition, we suggest that this model can help managers to solve similar decision making problems using combination of Saaty method or analytic hierarchy process together with Visual PROMETHEE software. The logic and process of the decision making model elaboration as well as the decision model itself can be used as a framework for managers facing decision making problems with similar nature as innovation management concepts i.e.: ERP systems, information systems, technologies, business models.Web of Science6327425

Wind Energy and Multicriteria Analysis in Making Decisions on the Location of Wind Farms: A Case Study in the North-Eastern of Poland

This chapter presents an investigation of different methods of multicriteria analysis and different rules of proceedings that have to be taken into account for making decision about location of a wind farm with application in the north-eastern (NE) Poland. Ten multicriteria analyses were discussed taking into account the main criteria on which they are based on utility functions (MAUT, AHP, and DEMATEL), relationship outranking (ELECTRE, PROMETHEE, and ARROW-RAYNAUD), distances (TOPSIS), and decision support (BORDA ranking methods and their modified and COPELAND). Taking into account of nine criteria that should be met by the location of 15 wind turbines in Krynki and Szudzialowo communities, the main three criteria (C3, C8, and C9) were found to differentiate location of eight wind turbines (T-6–T-13), according to two variants (I and II). The Borda ranking method proved that from among the two variants considered, the more suitable location of wind turbines is second variant W II than first variant W I. Variant W II had a higher altitude of the terrain (C3) and less risk of impact on birds (C8) and bats species (C9) than variant W I

Selection of Operation and Maintenance Stategic Partner Using AHP-VIKOR Model

In order to increase CFSPP (Coal Fired Steam Power Plant) ABC actual EAF (Effective Availability Factor) from 76% in 2019 to designed EAF 85% by taking into consideration of investment funding hardship, PT.ABC initiate to select O&M (Operation and Maintenance) Strategic Partner, but it is not an easy decision and is associated with complexity. The purpose of this paper is to propose multi criteria decision making (MCDM) approach to effectively select the best partner out of 5 pre-selected partner candidates. The approach using AHP to calculate criteria weights, then VIKOR to get the final ranking result. The criteria and sub criteria define from experts’ discussion and literature review. Weights of 3 main criteria namely partner, collaboration and performance-oriented criteria are 0.113, 0.446 and 0.441. Alternative A1 is the first rank. There are 11 sub-criteria, with 3 biggest weights: 0.225 for project expectation, 0.162 for trust and 0.119 for technological capability. Project expectation and technological capability are from performance-oriented criteria while trust is part of collaboration-oriented criteria. This study can be useful for researchers to better understand of partner selection process and MCDM approach in theoritically, as well to companies in designing better partner selection system

The Use of the AHP in Civil Engineering Projects

Most engineering, economic, social and institutional decisions are made with explicit notions of optimal behavior and implicit human motivations. In such a process, manipulation of both tangible and intangible data and satisfaction of multiple criteria are essential to the success of decision-making. In this paper an approach to multiple-criteria decision making known as the analytic hierarchy process (AHP) is presented. Some mathematical details of the procedure are briefly discussed. The application of the method to a real life civil engineering project for the selection of an appropriate bridge design is also presented.multi-criteria decision making, analytic hierarchy process, bridge design

Project portfolio selection for increasing sustainability in supply chains

[EN] Sustainability practices impact on the competitiveness of organizations. Enterprises need approaches that both support the implementation of these practices by helping to define the strategic elements of sustainable supply chains and prioritize projects to increase profitability. The purpose of this paper is to propose an approach using the Analytic Hierarchy Process that supports the portfolio project decision by aligning the project selection process to the strategic objectives of a supply chain that pursue sustainability. This approach will benefit enterprises to prioritize projects that have the highest impact on the sustainability strategy of the supply chain over time. The approach has been applied to an Agri-food supply chain.Authors of this publication acknowledge the contribution of the Project GV/2017/065 "Development of a decision support tool for the management and improvement of sustainability in supply chains" funded by the Regional Government of Valencia.Verdecho Sáez, MJ.; Pérez Perales, D.; Alarcón Valero, F. (2020). Project portfolio selection for increasing sustainability in supply chains. Economics and business letters. 9(4):317-325. https://doi.org/10.17811/ebl.9.4.2020.317-325S3173259