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Text of Weighted Score And Topsis
Multi-Criteria Decision Making MCDM Approaches
Introduction
Zeleny (1982) opens his book Multiple Criteria Decision Making with a statement:
It has become more and more difficult to see the world around us in a unidimensional way and to use only a single criterion when judging what we see
Introduction
Many public sector problems and even private decision involve multiple objectives and goals. As an example:
Locating a nuclear power plant involves objectives such as:
Safety
Health
Environment
Cost
Examples of Multi-Criteria Problems
In a case study on the management of R&D research (Moore et. al 1976) , the following objectives have been identified:
Profitability
Growth and diversity of the product line
Increased market share
Maintained technical capability
Firm reputation and image
Research that anticipates competition
Examples of Multi-Criteria Problems
In determining an electric route for power transmission in a city, several objectives could be considered:
Cost
Health
Reliability
Importance of areas
Examples of Multi-Criteria Problems
In selecting a major at KFUPM, several objectives can be considered. These objectives or criteria include:
Job market upon graduation
Job pay and opportunity to progress
Interest in the major
Likelihood of success in the major
Future job image
Parent wish
Examples of Multi-Criteria Problems
Wife selection problem . This problem is a good example of multi-criteria decision problem. Criteria include:
Religion
Beauty
Wealth
Family status
Family relationship
Education
Approaches For MCDM
Several approaches for MCDM exist. We will cover the following:
Weighted score method ( Section 5.1 in text book).
TOPSIS method
Analytic Hierarchy Process (AHP)
Goal programming ?
Weighted score method
Determine the criteria for the problem
Determine the weight for each criteria. The weight can be obtained via survey, AHP, etc.
Obtain the score of option i using each criteria j for all i and j
Compute the sum of the weighted score for each option .
Weighted score method
In order for the sum to make sense all criteria scale must be consistent, i.e.,
More is better or less is better for all criteria
Example:
In the wife selection problem , all criteria (Religion, Beauty, Wealth, Family status, Family relationship, Education) more is better
If we consider other criteria (age, dowry) less is better
Weighted score method
Let S ij score of option i using criterion j
w j weight for criterion j
S i score of option i is given as:
S i = w j S ij
j
The option with the best score is selected.
Weighted Score Method
The method can be modified by using U(S ij ) and then calculating the weighted utility score.
To use utility the condition of separability must hold.
Explain the meaning of separability:
U(S i ) = w j U(S ij )
U(S i ) U( w j S ij )
Example Using Weighted Scoring Method
Objective
Selecting a car
Criteria
Style, Reliability, Fuel-economy
Alternatives
Civic Coupe, Saturn Coupe, Ford Escort, Mazda Miata