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MCDM

MCDM. Y. İlker TOPCU , Ph .D. www.ilkertopcu. net www. ilkertopcu .org www. ilkertopcu . info www. facebook .com/ yitopcu twitter .com/ yitopcu. D ecision Making. Intentional and reflective choice in response to perceived needs ( Kleindorfer et al. , 1993)

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MCDM

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  1. MCDM Y. İlker TOPCU, Ph.D. www.ilkertopcu.net www.ilkertopcu.org www.ilkertopcu.info www.facebook.com/yitopcu twitter.com/yitopcu

  2. Decision Making • Intentional and reflectivechoice in responsetoperceivedneeds(Kleindorferet al., 1993) • Decision maker’s (DM’s) choice of onealternativeor a subset of alternativesamongallpossiblealternativeswithrespectto her/his goalorgoals(Evren and Ülengin, 1992) • Solving a problem bychoosing, ranking, orclassifyingovertheavailablealternativesthatarecharacterizedbymultiplecriteria(Topcu, 1999)

  3. Multicriteria Decision Making • A single DM is to choose among a countable (usually finite) or uncountable set of alternatives that s/he evaluates on the basis of two or more (multiple) criteria(Korhonen et al., 1992; Dyer et al., 1992) • MCDM consists of constructing a global preference relation for a set of alternatives evaluated using several criteria (Vansnick, 1986) • The aim of any MCDM technique is to provide help and guidance to the DM in discovering his or her most desired solution to the problem(Stewart, 1992)

  4. MADM – MODM A differentiation can be made w.r.t. number of alternatives: • Multi Attribute Decision Making – MADM Cases in which the set of decision alternatives is defined explicitly by a finite list of alternative actions – Discrete alternatives • Multi Objective Decision Making – MODM Those in which a is defined implicitly by a mathematical programming structure – Continuous alternatives

  5. Multi Attribute Decision Making • MADM is making preference decisions (selecting, ranking, classifying, screening, prioritizing)over the available alternatives (finite number) that are characterized by attributes (multiple, conflicting,weighted, and incommensurable)(Yoon & Hwang, 1995)

  6. MADM Problem Statements Problématiques: • Choice (a) • Classification/Sorting (b) • Ranking (g)

  7. Choice • Isolate the smallest subset liable to justify the elimination of all other actions • Selecting a subset, as restricted as possible, containing the most satisfactory alternatives as a compromise solution

  8. Classification • Sorting alternatives and assigning each of them into prespecified / predefined categories

  9. Ranking • Building a partial or complete pre-order as rich as possible • Ranking(all or some of)alternatives by decreasing order of preference

  10. Decision Making Process • Structuring the Problem Exploring the issue and determining whether or not MADM is an appropriate tool: If so, then alternatives for evaluation and relevant criteria can be expected to emerge • Constructing the Decision Model Elicitation of preferences, performance values, and (if necessary) importance • Analyzing (Solving) the Problem Using a solution method to synthesize and explore results (through sensitivity and robustness analyses)

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