Fuzzy α-discounting method for multi-criteria decision-making

Abstract

The α-Discounting Method was developed to be an alternative to and extension of the Analytical Hierarchy Process (AHP) to solve multi-criteria decision-making (MCDM) problems with non-commensurable and conflicting criteria. In contrast to the AHP, this method works not only for pairwise comparisons but also for n-wise comparisons if relative importance of criteria can be expressed in a system of linear homogenous equations. This method also has a comparative advantage as it can transform those MCDM problems, classified as inconsistent by the AHP, into a consistent form. This study briefly compares the two methods and then develops the Fuzzy α-Discounting Method for Multi-Criteria Decision Making (Fα-DM MCDM). Two illustrative fuzzy MCDM problems from the literature have been solved to show how the Fα-DM MCDM works.