Interpretive multi-criteria ranking of production systems with ordinal weights and transitive dominance relationships

Abstract

The paper deals with the situation of manufacturing of customized engineering products under intense competitive environment. Such customized engineering products can be manufactured by different types of production systems such as job production, batch production, mass production, and flexible manufacturing systems. It then becomes an important decision to choose the best one among these production systems which is also dependent on multiple criteria. The three basic criteria predominantly considered in the context of manufacturing are cost, quality, and flexibility. The paper applies the efficient interpretive ranking process (IRP) as an interpretive multi-criteria ranking method to demonstrate its utility in this context. It considers the design of the decision problem by treating the cross-interaction matrix of ‘Alternatives × Criteria’ as a unit matrix, i.e. each alternative is linked with each criterion. In this type of decision problem, the IRP method is implemented with transitive dominance relationships. Further, it carries out the sensitivity analysis concerning different ordinal weights of various criteria. The paper also makes a methodological contribution in IRP by way of computing dominance index rather than simply considering net dominance (which would be either positive or nil or negative). The dominance index gives a better depiction of the dominance of one alternative over the others.