Understanding Multi-Criteria Decision Making Models

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Multi-Criteria decision Making (MCDM) can be divided into two categories: Multi Attribute Decision Making (MADM) and Multi Objective Decision Making (MODM). During the last few years, the MCDM theory has been applied in many disciplines such as operations research and management science. The theory revolves around ranking a finite number of alternatives based on a set of performance attributes. The decision variables can be quantitative or qualitative. MADM models include discrete variables with a number of pre-specified alternatives and do not require an explicit relation between the input and output variables. As such, most of the MADM models are defined by a decision matrix. One of the popular models introduced by Yoon and Hwang is the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The principle behind TOPSIS is that the most preferred alternative should have both the shortest distance from the positive ideal solution, and the furthest distance from the negative ideal solution. The positive and negative ideal solutions are referred to as the ideal and anti-ideal solutions, respectively. The ideal and anti-ideal solutions are the best and the worst attribute values achievable, respectively. In MADM models, the scores of the attributes is a reflection of the decision makers’ (DMs) subjective preferences on the objective …show more content…

Sometimes, this model cannot distinguish the rank of the candidates from one another. To remedy this shortcoming, Green et al. (Ma and Li 2008) utilized a cross-efficiency evaluation to obtain a full ranking for candidates (see also (Noguchi, Ogawa, and Ishii 2002)). Hashimoto (Hashimoto 1997) proposed a full ranking DEA method called super-efficiency in order to discriminate all candidates in the Cook and Kress

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