Multicriteria Decision-makers Research Articles

A dynamic self-learning grid-responsive strategy for battery sharing economy—multi-objective optimisation and posteriori multi-criteria decision making

District building-vehicle interactive energy network with systematic energy interactions can improve techno-economic performances and enhance cleaner power penetration, whereas the battery cycling aging will be accelerated due to an increase in frequency of charging/discharging cycles. In this study, a dynamic self-learning grid-responsive strategy was proposed to improve techno-economic performances, energy flexibility, and the relative capacity (RC) of electrochemical batteries, through dynamically adjustable off-peak grid charging power. A collaborative framework on an energy district with building-integrated photovoltaics and electric vehicles has been formulated, through synergic energy interactions and integrations. Cycling aging of both static batteries in buildings and mobile vehicle batteries has been considered. In respect to intrinsic contradiction characteristics of each objective, trade-off solutions have been proposed through multi-objective optimisation. Furthermore, regarding the multiple optimal solutions along the Pareto front, a weighted Eulerian distance-based methodology was adopted to identify the ‘best of best’ solution and then assist multi-criteria decision-making. Research results show that, with the proposed dynamic self-learning grid-responsive strategy, the grid can provide a more flexible grid-to-battery charging power with a higher RC of batteries, compared to the strategy with dynamic renewable-demand signals. Through the multi-objective optimisation, the import cost can be reduced from 213.2 to 203.8 HK$/m2·a, and the RC can be improved from 0.800 to 0.999. This study also demonstrates a weighted Eulerian distance-based methodology to identify the ‘best of best’ solution to multi-criteria decision-makers. Research results are useful to promote district interactive energy networks in smart cities, with multivariant optimal design, Pareto optimal solutions, and weighted Eulerian distance-based ‘best of best’ solution.

Multiperiod supply chain network dynamics under investment in sustainability, externality cost, and consumers’ willingness to pay

This paper analyzes the multiperiod effects of a multi-tier supply chain network's economic, social, and environmental decision-making. The network consists of suppliers, manufacturers, and retailers who are multicriteria decision-makers. They are constrained by externality costs in taxation and consumers' preferences and willingness to pay for sustainable products. We develop an optimization model that allows us to investigate the interplay of different decision-makers and to compute the resultant network equilibrium pattern of productions, transactions, inventory levels, prices, and sustainability levels in the network over the multiperiod planning horizon. The numerical study simulates and analyzes the effects of consumers' willingness to pay, externality cost, production capacity, NPV (net present value) discount rate, sustainability investment, and the structure of the supply chain network, on the economic, social, and environmental sustainability.

Equilibrium Conditions of a Logistics Service Supply Chain with a New Smoothing Algorithm

In this paper, we develop a logistics service supply chain network equilibrium model in which four tiers of decision makers (logistics service subcontractors (LSS), logistics service providers (LSP), logistics services integrators (LSI) and logistics service demand sides (LSD)) seek to determine their respective optimal conditions, with the LSI holding a leading position. We model the optimizing behavior of decision-makers, with the LSI being multicriteria decision-makers which are concerned with both profit maximization and risk minimization. We derive the equilibrium conditions and establish the finite-dimensional variational inequality (VI) formulation. A new smoothing self-adaptive L-M algorithm is established to solve this problems. Finally, we illustrate the effectiveness and feasibility of the model by an example.

The Art of Integrated GIS/AHP for Siting Landfill: A Review

This article reviewed selected works on how decision makers (DMs) utilize integrated geographic information system (GIS)/analytical hierarchy process (AHP) tools to analyze land suitability for sanitary landfill sites as part of regional planning. We analyzed the hierarchy process of certain pervious works to facilitate better understanding. The innovative work of Siddiqi et al. in 1996 highlighted the advantages of integrating AHP in GIS software and reviewed some limitations. The present paper explained the background study on multi-criteria decision analysis/aid (MCDA) so-called multi-criteria decision makers (MCDM) in conjunction with the advantages of GIS as a new remedy for utilizing the AHP weights of the decision makers. For this study we often use the term MCDA and MCDM.

Financial networks with socially responsible investing

In this paper, we develop a framework for the modeling, analysis, and computation of solutions to multitiered financial network problems with socially responsible investment in which both the sources of financial funds as well as the intermediaries are multicriteria decision-makers. We assume that these decision-makers seek not only to maximize their net revenues but also minimize risk with the risk being penalized by a variable weight. Furthermore, we assume that the intermediaries are socially responsible companies, who want to maximize their social responsibility levels. We make explicit the behavior of the various decision-makers, including the consumers at the demand markets for the financial products. We derive the optimality conditions, and demonstrate that the governing equilibrium conditions of the financial network economy can be formulated as a finite-dimensional variational inequality problem. Qualitative properties of the equilibrium financial flow and price pattern are provided. A numerical example is used to illustrate the model.

Supply chain disruption risk management through strategic information acquisition and sharing and risk-sharing contracts

In this paper, we develop a framework that captures the effects of information management and risk-sharing contracts in supply chain networks. In particular, we analyse the impact of strategic information acquisition and sharing on supply chain disruption risks and costs and we evaluate the supply chain performance of risk-sharing contracts. Risk-sharing contracts specify who needs to incur the costs when supply chain disruptions occur. We develop a model that consists of three tiers of multi-criteria decision-makers, manufacturers, retailers, and demand markets. We describe the behaviour or each decision-maker, derive the finite-dimensional variational inequality formulation of the equilibrium conditions of the supply chain and present numerical examples. The numerical examples highlight that it is not a priori clear which participant in the supply chain network will benefit from increased information-sharing activities. Our models indicate that the beneficiary of reduced information-sharing costs is in some cases dependent on the negotiation power of participants and that it is also dependent on the type of risk-sharing contract used. Furthermore, the numerical examples show that, in some cases, information-sharing and risk-sharing contracts are complements while in other cases they are substitutes.

Mixed Stochastic User Equilibrium Behavior under Traveler Information Provision Services with Heterogeneous Multiclass, Multicriteria Decision Making

This article studies travelers' mixed stochastic user equilibrium (SUE) behaviors under traveler information provision services with heterogeneous multiclass multicriteria decision making. A multiclass, multicriteria mixed SUE assignment model under traveler information provision services is proposed and modeled as a nonlinear complementary problem (NCP). The model considers heterogeneous road travelers who are assumed to be multicriteria decision makers. The route choice behaviors of equipped and unequipped travelers under traveler information provision services is then formulated as an optimization program, in which the net economic benefit is maximized and the total generated emissions are constrained. The optimization model has an interpretation from economic, behavioral, and environmental viewpoints. The solution of this program satisfies the logit-based SUE assignment. By deriving first-order optimality conditions from this program, the marginal cost pricing policy is obtained. This pricing is not only class dependent but also link dependent.

Sustainable Supply Chain and Transportation Networks

ABSTRACT In this paper, we show how sustainable supply chains can be transformed into and studied as transportation networks. Specifically, we develop a new supply chain model in which the manufacturers can produce the homogeneous product in different manufacturing plants with associated distinct environmental emissions. We assume that the manufacturers, the retailers with which they transact, as well as the consumers at the demand markets for the product are multicriteria decision-makers with the environmental criteria weighted distinctly by the different decision-makers. We derive the optimality conditions and the equilibrium conditions, which are then shown to satisfy a variational inequality problem. We prove that the supply chain model with environmental concerns can be reformulated and solved as an elastic demand transportation network equilibrium problem. Numerical supply chain examples are presented for illustration purposes. This paper, hence, begins the construction of a bridge between sustainable supply chains and transportation networks.

Financial networks with intermediation: Risk management with variable weights

In this paper, we develop a framework for the modeling, analysis, and computation of solutions to multitiered financial network problems with intermediaries in which both the sources of financial funds as well as the intermediaries are multicriteria decision-makers. In particular, we assume that these decision-makers seek not only to maximize their net revenues but also to minimize risk with the risk being penalized by a variable weight. We make explicit the behavior of the various decision-makers, including the consumers at the demand markets for the financial products. We derive the optimality conditions, and demonstrate that the governing equilibrium conditions of the financial network economy can be formulated as a finite-dimensional variational inequality problem. Qualitative properties of the equilibrium financial flow and price pattern are provided. A computational procedure that exploits the network structure of the problem is proposed and then applied to several numerical examples.

Supply chain networks, electronic commerce, and supply side and demand side risk

In this paper, we develop a supply chain network model in which both physical and electronic transactions are allowed and in which supply side risk as well as demand side risk are included in the formulation. The model consists of three tiers of decision-makers: the manufacturers, the distributors, and the retailers, with the demands associated with the retail outlets being random. We model the optimizing behavior of the various decision-makers, with the manufacturers and the distributors being multicriteria decision-makers and concerned with both profit maximization and risk minimization. We derive the equilibrium conditions and establish the finite-dimensional variational inequality formulation. We provide qualitative properties of the equilibrium pattern in terms of existence and uniqueness results and also establish conditions under which the proposed computational procedure is guaranteed to converge. We illustrate the supply chain network model through several numerical examples for which the equilibrium prices and product shipments are computed. This is the first multitiered supply chain network equilibrium model with electronic commerce and with supply side and demand side risk for which modeling, qualitative analysis, and computational results have been obtained.

Phased multicriteria preference finding

This paper considers the implications of a tendency of multicriteria decision-makers to use screening, ordering and choosing phases to find a preference as they reduce the set of their candidate alternatives. This corresponds with increasing levels of effort and willingness to use sophisticated cognitive processes. It suggests that appropriate corresponding types of measurement are those using attributes, utilities and relative scores of alternatives, for which standard methods are SMART, MAUT and AHP. Theory on the decision processes of the mind is incorporated, which shows how to structure criteria trees and that relatively measured weights and scores should be synthesised using a power function. Tests of revised utility and relative MCDM methods and of software incorporating these ideas are reviewed. They facilitate interactive refinement of scores at all points of the criteria tree and easy reduction in the number of alternatives. Two alternative screening phases are considered, one based on scoring all the attributes together, the other scoring the attributes in clusters in the structured criteria tree. Empirical tests confirm the value of the three phase approach, but leave slightly open the question about which type of first phase is preferable.

Dynamics of international financial networks with risk management

In this paper, we develop an international financialnetwork model in which the sources of funds and the intermediaries are multicriteria decision-makers and are concerned with both net revenue maximization and risk minimization. The model allows for both physical as well as electronic transactions and considers three tiers of decision-makers who may be located in distinct countries and may conduct their transactions in different currencies. We describe the behaviour of the various decision-makers, along with their optimality conditions, and derive the variational inequality formulation of the governing equilibrium conditions. We then propose a dynamic adjustment process which yields the evolution of the financial flows and prices and demonstrate that it can be formulated as a projected dynamical system. We also provide qualitative properties including stability analysis results. Finally, we discuss a discrete-time algorithm which can be applied to track the dynamic trajectories and yields the equilibrium financial flows and prices. We illustrate both the modelling framework as well as the computational procedure with several numerical international financial network examples.

Global Supply Chain Networks and Risk Management

In this paper, we develop a global supply chain network model in which both physical and electronic transactions are allowed and in which supply-side risk as well as demand-side risk are included in the formulation. The model consists of three tiers of decision-makers: the manufacturers, the distributors, and the retailers who may be located in the same or in different countries and may conduct their transactions in distinct currencies. We model the optimizing behavior of the various decision-makers, with the manufacturers and the distributors being multicriteria decision-makers, and concerned with both profit maximization and risk minimization. The retailers, in turn, are faced with random demands for the product. We derive the governing equilibrium conditions and establish the finite-dimensional variational inequality formulation. We provide qualitative properties of the equilibrium product flow and price pattern in terms of existence and uniqueness results and also establish conditions under which the proposed computational procedure is guaranteed to converge. Finally, we illustrate the global supply chain network model and the computational procedure through several numerical examples. This research extends the modelling, analysis, and computation of solutions to decentralized supply chain networks in the presence of electronic commerce and risk management to the global arena.

Dynamics of International Financial Networks with Risk Management

In this paper, we develop an international financial network model in which the sources of funds and the intermediaries are multicriteria decision-makers and are concerned with both net revenue maximization and risk minimization. The model allows for both physical as well as electronic transactions and considers three tiers of decision-makers who may be located in distinct countries and may conduct their transactions in different currencies. We describe the behavior of the various decision-makers, along with their optimality conditions, and derive the variational inequality formulation of the governing equilibrium conditions. We then propose a dynamic adjustment process which yields the evolution of the financial flows and prices and demonstrate that it can be formulated as a projected dynamical system. We also provide qualitative properties including stability analysis results. Finally, we discuss a discrete-time algorithm which can be applied to track the dynamic trajectories and yields the equilibrium financial flows and prices. We illustrate both the modeling framework as well as the computational procedure with several numerical international financial network examples.

Spatial economic networks with multicriteria producers and consumers: Statics and dynamics

In this paper, we develop a framework for the formulation, analysis, and computation of solutions to spatial network problems in which the firms are multicriteria decision-makers and the consumers are as well. In particular, the firms, which are involved in the production of a homogeneous commodity, are spatially separated and weight the two criteria of profit maximization and total output maximization in distinct fashion. They are faced with the selection of modes/routes (which are modeled in an aggregated manner) to transport the commodity to the demand markets where consumers, consisting of different classes, consider the price charged by the producers and weight the transportation cost and the transportation time of the product on the links in an individual manner. We derive the governing equilibrium conditions and present the variational inequality formulation. We provide qualitative properties of the equilibrium commodity shipment and generalized price pattern and then propose a tatonnement process, which we formulate as a projected dynamical system. We give an algorithm for computational purposes and apply it to several numerical examples for illustration purposes. This paper is the first to integrate multicriteria decision-making on the production side and on the consumption side in a basic network context.

Teleshopping versus shopping: a multicriteria network equilibrium framework

This paper proposes a network equilibrium framework for the conceptualization, modeling, and analysis of consumers' selection of teleshopping versus shopping for a frequently purchased product. The shoppers or consumers are assumed to be multicriteria decision-makers with each class of consumer characterized by a finite number of criteria which may include, for example, time, cost, opportunity cost, as well as security/safety, among other criteria. We construct the network structure of the consumers' choices with an explicit identification of the nodes, links, paths, and origin/destination pairs, and allow each class of consumer or shopper to weight his criteria in an individual manner on each link of the shopping network. The framework is the first to capture teleshopping versus shopping alternatives with predictive equilibrium flows.

Paradoxes in networks with zero emission links: implications for telecommunications versus transportation

In this paper, we consider networks in which a link is characterized by zero emissions as is typical of networks in which certain links correspond to telecommunication links. We identify three new and distinct paradoxical phenomena that can occur in such networks, which demonstrate that so-called “improvements” to the network may result in increases in total emissions generated. In particular, we illustrate, through specific examples, the following: (1) the addition of a link with zero emissions may result in an increase in total emissions with no change in travel demand, (2) the total emissions on a network with a zero emission link may increase with a decrease in travel demand, and (3) the addition of a path connecting an origin/destination (O/D) pair and consisting solely of a zero emission link may result in an increase in total emissions. We then propose an emission pricing policy which guarantees that such paradoxes do not occur. The pricing policy is shown to be equivalent to a particular weighting mechanism associated with the criterion of emission generation provided that the users are now multicriteria decision-makers who seek to minimize both the cost of their route choices as well as the emissions that they generate.