Multiple Criteria Decision Making in Industry

Abstract

I. Multiple Criteria Decision Making - An Introduction. MCDM - balancing a variety of needs and goals. Definition of MCDM. Conflicting criteria. Definitions: attributes, objectives, goals, criteria. II. Fundamentals of Multicriterion Optimization. Formulation. Concept of optimal and efficient solutions. Concept of ideal solutions. III. Importance of Criteria. Introduction. Scales of measurement. Concept of weights. Assessing the multiple criteria. Ranking. Rating. Paired comparison. Successive comparisons. Delphi technique. Concept of tradeoffs. IV. Techniques. Single objective approach. Unifying objective functions approach. Global criterion method. Utility function method. Minimum deviation method. Compromise constraint method. Bicriterion linear programming. The case of multiple objective functions. Goal programming approach. Formulation. GP versus LP. Simplex method of goal programming. Some complications and their resolutions. Interactive approach. Step method. ``Game Theoretic'' technique. Interactive sequential conversion of objectives into constraints (ISOC). Compromise programming. Electre approach. Electre I. Electre II. Parametric approach. De Novo programming. Theoretical foundations. Formulation. Special characteristics. Effects of multiple pricing. Increasing cost of raw materials. Quantity discounts. Decreasing revenues. De Novo's applicability in MODM. V. MCDM Applications in Production Management. Introduction. Aggregate production planning. Generalized model. Other models. Multistage production planning and scheduling. Introduction. Model formulation. Production planning: the case of a cement plant. Production planning: short versus long term. Machine sequencing with forbidden early shipments. Quality control model: designing a sampling plan. Batch production planning. Resource and product mix problem: case study. Production situation. Unlimited demand situation. Limited demand situation. Multiobjective decision models. Global criterion method. Compromise constraint method. The step method (STEM). Goal setting and achievement under De Novo. General observations. VI. MCDM Applications in Business Management. Manpower planning. Manpower selection and allocation decisions. Assignment of persons to jobs. Financial planning. Marketing management. VII. MCDM Applications in Other Related Areas. Project crashing: time-cost tradeoff. Diffusion patterns of small industries. Project selection. A case of Asian preferential trade tariff arrangements. Model formulation. Model application: the case of the commodity sugar. Bicriterion transportation models: A case study. The models. Application of the model. Appendix. A Heuristic Algorithm for De Novo Programming. Subject Index. Author Index.