Abstract

A typical multiple attribute decision making (MADM) model is a scientific analytical model for evaluating and improving a set of alternatives based on multiple criteria. However, this study identified some important new concepts and limitations/defects of traditional MADM for solving the real-world problems. First, the traditional MADM model assumes that criteria considered are independent and hierarchical in structure; however, the real-world problems often involve interdependent criteria, and thus interdependent models are required. Second, relatively good solutions from existing alternatives are replaced by the aspiration levels. Third, the trend has shifted from how to “rank” or “select” the most preferable alternatives, to how to “improve” their performances. Fourth, information fusion/aggregation, such as fuzzy integrals, basically, a non-additive/super-additive model, has been developed for performance aggregation. Therefore, to overcome the defects of the conventional MADM method and solve complex and dynamic real world problems, a Hybrid Dynamic Multiple Criteria Decision Making (HDMADM) method is needed. Finally, this study presented real cases to demonstrate the effectiveness of the HDMADM method for overcoming the defects of the conventional MADM method.

Highlights

  • Decision making (DM) regarding single criterion problems is highly intuitive, being a simple matter of choosing the alternative with the highest preference rating

  • Multiple criteria decision making (MCDM) is a scientific analytical method for evaluating a set of alternatives based on multiple criteria (Campanella, Ribeiro 2011; Tsaur et al 1997; Wang, Lee 2009; Loban 1997)

  • This section is divided into five parts: the first part describes the concept of Hybrid Dynamic Multiple Attribute Decision Making (HDMADM) method, the second part presents DEMATEL method, the third part presents DANP, the fourth part presents VIKOR method, and the last part describes fuzzy integral for focusing on how to aggregate the performance in non-additive/super-additive situations to suit the real world problems

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Summary

A HYBRID DYNAMIC MADM MODEL FOR PROBLEM-IMPROVEMENT IN ECONOMICS AND BUSINESS

Kua-Hsin PENGa, Gwo-Hshiung TZENGb aInstitute of Leisure and Recreation Management, Kainan University, No 1, Kainan Road, Luchu, Taoyuan 338, Taiwan bGraduate Institute of Urban Planning, College of Public Affairs, National Taipei University, No 151, University Road, San Shia 237, Taiwan bInstitute of Management of Technology, National Chiao-Tung University, No 1001, Ta-Hsueh Road, Hsin-Chu 300, Taiwan

Introduction
Objective
MCDM method
Methodology for solving the real world problems
DEMATEL method
Finding the influential weights using DANP
VIKOR Method
The λ fuzzy measure and fuzzy integral
An empirical case
Human cultural and natural resources
C10 Price competitiveness
Supplier evaluation and improvement involving a Taiwanese company
C43 Information security
Conclusions
Full Text
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