MCDM
Multi-Criteria Decision
Making
Presentation Content
MCDM definition
Problem solving steps
Criteria specifications
Weighting the criteria
Standardizing the raw scores
Problem solving techniques
MCDM Definitions
- consists of constructing a global preference relation
for a set of alternatives evaluated using several
criteria
- selection of the best actions from a set of
alternatives, each of which is evaluated against
multiple, and often conflicting criteria.
Two related pradigms
MADM (multi-attribute decision making): these
problems are assumed to have a predetermined ,
limited number of decision alternatives.
MODM (multi-objective decision making): the decision
alternatives are not given. instead, the set of decision
alternatives is explicitly defined by constraints using
multiple objective programming. the number of
potential decision alternatives may be large.
Problem Solving Steps
• Establish the decision context, the decision
objectives (goals), and identify the decision
maker(s).
• Identify the alternatives.
• Identify the criteria (attributes) that are
relevant to the decision problem.
Problem Solving Steps (cont.)
• For each of the criteria, assign scores to measure the
performance of the alternatives against each of these and
construct an evaluation matrix (often called an options
matrix or a decision table).
• Standardize the raw scores to generate a priority scores
matrix or decision table.
• Determine a weight for each criterion to reflect how
important it is to the overall decision.
Problem Solving Steps (cont.)
• Use aggregation functions (also called decision
rules) to compute an overall assessment measure
for each decision alternative by combining the
weights and priority scores.
• Perform a sensitivity analysis to assess the
robustness of the preference ranking to changes in
the criteria scores and/or the assigned weights.
Weighting the Criteria
• The ranking method: In this method, the criteria are simply
ranked in perceived order Of importance by decision- makers: c1
> c2 > c3 > … > ci . The method assumes that the weights are
non-negative and sum to 1.
• Rating method: The point allocation approach is based on
allocating points ranging from 0 to 100, where 0 indicates that
the criterion can be ignored, and 100 represents the situation
where only one criterion need to be considered. In ratio
estimation procedure which is a modification of the point
allocation method. A score of 100 is assigned to the most
important criterion and proportionally smaller weights are given
to criteria lower in the order. The score assigned for the least
important attribute is used to calculate the ratios.
Weighting the Criteria (cont.)
• Pair wise comparison method: involves pair wise comparisons to
create a ratio matrix. It uses scale table for pair wise
comparisons and then computes the weights.
Standardizing the Raw Scores
Because usually the various criteria are measured in
different units, the scores in the evaluation matrix S have
to be transformed to a normalized scale. some methods
are :
Problem Solving Techniques
Some problem solving techniques are :
• SAW (Simple Additive Weighting)
• TOPSIS (Technique for Order Preference by Similarity to the
Ideal Solution)
• ELECTRE (Elimination et Choice Translating Reality)
• BAYESIAN NETWORK BASED FRAMEWORK
• AHP (The Analytical Hierarchy Process)
• SMART (The Simple Multi Attribute Rating Technique )
• ANP (Analytic network process)
SAW (Simple Additive Weighting)
Multiplies the normalized value of the criteria for the
alternatives with the importance of the
criteria. The alternative with the highest score is
selected as the preferred one.
SAW (Simple Additive Weighting) (cont.)
TOPSIS
TOPSIS means “Technique for Order Preference by Similarity
to the Ideal Solution”
• In this method two artificial alternatives are hypothesized:
• Ideal alternative: the one which has the best level for all
attributes considered.
• Negative ideal alternative: the one which has the worst
attribute values.
• TOPSIS selects the alternative that is the closest to the ideal
solution and farthest from negative ideal alternative.
Input to TOPSIS
• TOPSIS assumes that we have m alternatives (options)
and n attributes/criteria and we have the score of each
option with respect to each criterion.
• Let xij score of option i with respect to criterion j
• We have a matrix X = (xij) mn matrix.
• Let J be the set of benefit attributes or criteria (more
is better)
• Let J' be the set of negative attributes or criteria (less
is better)
Step of TOPSIS
Step 1: Construct normalized decision matrix.
This step transforms various attribute dimensions into non-
dimensional attributes, which allows comparisons across
criteria.
Normalize scores or data as follows:
rij = xij/ √(x2ij) for i = 1, …, m; j = 1, …, n
Step 2: Construct the weighted normalized decision matrix.
Assume we have a set of weights for each criteria wj for j = 1,…n.
Multiply each column of the normalized decision matrix by its
associated weight.
An element of the new matrix is:
vij = wj rij
Step of TOPSIS (cont.)
Step 3: Determine the ideal and negative ideal
solutions.
Ideal solution.
A+ = { v1+ , …, vn+}, where
vj+ ={ max (vij) if j J ; min (vij) if j J' }
i i
Negative ideal solution.
A- = { v1' , …, vn' }, where
v- = { min (vij) if j J ; max (vij) if j J' }
Step of TOPSIS (cont.)
Step 4: Calculate the separation measures for each
alternative.
The separation from the ideal alternative is:
Si + = [ (vj+– vij)2 ] ½ i = 1, …, m
j
Similarly, the separation from the negative ideal
alternative is:
S’i = [ (vj' – vij)2 ] ½ i = 1, …, m
Step 5: Calculate the relative closeness to the ideal
solution Ci*
Ci* = S'i / (Si* +S'i ) , 0 Ci* 1
Select the Alternative with Ci* closest to 1.
Example
AHP
AHP means “The Analytical Hierarchy Process”
AHP uses a hierarchical structure and pairwise
comparisons.
An AHP hierarchy has at least three levels:
1) the main objective of the problem at the top.
2) multiple criteria that define alternatives in the
middle.
3) competing alternatives at the bottom.
căn 2 của tổng
bình phương các
giá trị cùng cột
giá trị của từng cái / căn 2 của
tổng bình phương các giá trị
cùng cột
nhân cái bảng
data chuẩn hoá
với trọng số
Lưu ý nếu có note
chọn ra số
là điểm càng cao thì
lớn nhất và
nghĩa là chi phí
bé nhất cột
càng cao => ở cột
chi phí: điểm cao
ghi A- còn điểm
thấp thì là tốt ghi A+
S+i : Kcach điểm chuẩn hoá đến tốt nhất
S-i : Kcach điểm chuẩn hoá đến tệ nhất
Tính khoảng cách
tới điểm tệ nhất là
xa nhất => chọn
điểm lớn nhất
AHP hierarchical example
Scale of relative Importance Table
Step of AHP
• Criteria weighting must be determined using (m*(m-
1))/2 pair wise comparisons.
• Alternatives scoring using m*((n*(n-1))/2) pair wise
comparisons between alternatives for each criteria.
Văn bản
• After completing pair wise comparisons AHP is just
the hierarchical application of SAW.
Với AHp thì <0,1 (10%) thì nhất quán
AHP chuẩn hoá theo cách 1
Tópis chuẩn hoá theo cách cuối cùng
