1st Edition

Multiple Attribute Decision Making Methods and Applications

By Gwo-Hshiung Tzeng, Jih-Jeng Huang Copyright 2011
    350 Pages 66 B/W Illustrations
    by Chapman & Hall

    Decision makers are often faced with several conflicting alternatives. How do they evaluate trade-offs when there are more than three criteria? To help people make optimal decisions, scholars in the discipline of multiple criteria decision making (MCDM) continue to develop new methods for structuring preferences and determining the correct relative weights for criteria. A compilation of modern decision-making techniques, Multiple Attribute Decision Making: Methods and Applications focuses on the fuzzy set approach to multiple attribute decision making (MADM). Drawing on their experience, the authors bring together current methods and real-life applications of MADM techniques for decision analysis. They also propose a novel hybrid MADM model that combines DEMATEL and analytic network process (ANP) with VIKOR procedures.

    The first part of the book focuses on the theory of each method and includes examples that can be calculated without a computer, providing a complete understanding of the procedures. Methods include the analytic hierarchy process (AHP), ANP, simple additive weighting method, ELECTRE, PROMETHEE, the gray relational model, fuzzy integral technique, rough sets, and the structural model. Integrating theory and practice, the second part of the book illustrates how methods can be used to solve real-world MADM problems. Applications covered in the book include:

    • AHP to select planning and design services for a construction project
    • TOPSIS and VIKOR to evaluate the best alternative-fuel vehicles for urban areas
    • ELECTRE to solve network design problems in urban transportation planning
    • PROMETEE to set priorities for the development of new energy systems, from solar thermal to hydrogen energy
    • Fuzzy integrals to evaluate enterprise intranet web sites
    • Rough sets to make decisions in insurance marketing

    Helping readers understand how to apply MADM techniques to their decision making, this book is suitable for undergraduate and graduate students as well as practitioners.

    Introduction
    Profile of Multiple Criterion Decision Making
    Historical Development of Multiple Attribute Decision Making
    Historical Development of Multiple Objective Decision Making
    Introduction to Fuzzy Sets
    Outline of this Book

    PART I CONCEPTS AND THEORY OF MADM

    Analytic Hierarchy Process
    Eigenvalue Method
    Geometric Mean Method
    Linear Programming Method
    Fuzzy Lambda-Max Method

    Analytic Network Process and Fuzzy Analytic Network Process
    Analytic Network Process
    Fuzzy Analytic Network Process
    A Matrix Method for Fuzzy Analytic Network Process

    Simple Additive Weighting Method
    Simple Additive Weighting Method
    Fuzzy Simple Additive Weighting
    Fuzzy Simple Additive Weighting for the Best Plan: Example of an Environment-Watershed Plan
    Fuzzy Multiple Criteria Decision-Making

    TOPSIS and VIKOR
    TOPSIS
    VIKOR
    Comparing VIKOR and TOPSIS
    Fuzzy TOPSIS

    ELECTRE Method
    ELECTRE I
    ELECTRE II
    ELECTRE III
    ELECTRE IV

    PROMETHEE Method
    The Notion of the PROMETHEE Method
    PROMETHEE I, II, III, IV
    Example for House Selection

    Gray Relational Model
    Concepts of Gray System and Gray Relation
    Gray Relation Model
    Gray Relation for Multiple Criteria Evaluation
    Example for Car Selection

    Fuzzy Integral Technique
    Fuzzy Integral
    Hierarchical Fuzzy Integral

    Rough Sets
    Information System
    Indiscernible Relation
    Approximation of Sets and Approximation of Accuracy
    Reduction of Attributes
    Decision Table and Decision Rules
    The Analytical Procedure of Data Analysis

    Structural Model
    Interpretive Structural Modeling Method
    Dematel Method
    Fuzzy Cognition Maps

    PART II APPLICATIONS OF MADM

    AHP: An Application
    Introduction
    Planning and Design Alternatives Evaluation Model
    Case of Selecting the Engineering Service for Public Buildings
    Discussions
    Conclusion

    A VIKOR Technique with Applications Based on DEMATEL and ANP
    Introduction
    A Novel Hybrid Multiple Criteria Decision Making model
    Numerical Example with Applications
    Discussions and Comparisons
    Conclusions

    TOPSIS and VIKOR: An Application
    Alternative Solutions
    Evaluation Criteria
    Evaluation of the Alternatives
    Multicriteria Optimization
    Conclusions

    ELECTRE: An Application
    Introduction
    Multiple Objective Equilibrium Network Design Problem
    Modeling the Network Improvement Problem with Multiobjective Decision Making
    The Model and the Solution of the Bilevel Multiobjective Network Design
    The Evaluation and Group Decision Making for Network Improvement Project
    Conclusions and Recommendations

    PROMETEE: An Application
    Introduction
    Solar Thermal Energy
    Solar Photovoltaics
    Fuel Cells
    Wind Energy
    Biofuels
    Geothermal Energy
    Ocean Energy
    Hydrogen Energy
    Evaluation of New Energy-Development Alternatives
    Application of AHP
    Application of PROMETHEE
    Conclusions


    Gray Relation: An Application
    Introduction
    Non-additive Type Fuzzy Multicriteria Evaluation
    Multicriteria Evaluation through the Fuzzy Integral
    Multiple Criteria Evaluation of the Gray Relation Model
    Constructing the Gray Relation Model with Non-Additive Measures
    Empirical Analysis: A Case Study of Taiwan’s Junior Colleges
    Problem Descriptions
    Constructing a Multiple Criteria Evaluation Systems
    Analysis Procedures
    Analysis Results and Discussions
    Conclusions
    Appendices

    Fuzzy Integral: An Application
    Introduction
    Modeling the Hierarchical Structure of the Choquet Integral
    Empirical Case: Fuzzy Integral for Enterprise Intranet Web Sites
    Conclusions
    Appendices

    Rough Sets: An Application
    Introduction
    Illustrative Empirical Study: A Case for Making Insurance Marketing Decisions
    Study of Customer Needs and Reason for No Purchase
    Empirical Result
    Discussions
    Conclusions
    Appendices

    Extending the DEMATEL Method for Group Decision Making in Fuzzy Environments
    Introduction
    Dematel and Fuzzy Group Decision Making
    The Analytical Procedure of the Proposed Methodology
    Application of the Proposed Methodology
    Conclusions
    Appendix

    Appendix
    References
    Index

    Biography

    Gwo-Hshiung Tzeng is a Distinguished Chair Professor of Kainan University, Taiwan. He received a Bachelor’s degree in business management from the Tatung Institute of Technology (1967); a Master’s degree in urban planning from Chung Hsing University (1971); and a PhD in management science from Osaka University, Japan (1977). His current research interests include statistics, multivariate analysis, networks, routing and scheduling, multiple criteria decision making, fuzzy theory, hierarchical structure analysis for application to technology management, energy, environment, transportation systems, transportation investment, logistics, location, urban planning, tourism, technology management, electronic commerce, and global supply chains. He is editor-in-chief of the International Journal of Operations Research and the International Journal of Information Systems for Logistics and Management, among others.

    Jih-Jeng Huang is currently Assistant Professor of Computer Science and Information Management at Soochow University, Taiwan, and teaches research method, multivariate analysis, and capital asset and pricing models, among others. He received his PhD in Information Management from the National Taiwan University. His current research interests include multiple criteria decision making, knowledge management, behavioral economics and finance, and data analysis. He has published on these interests widely in journals and conference proceedings.