Multiple Criteria Decision Support System Research Articles

Multiple criteria decision support system for customer segmentation using a sorting outranking method

For companies, customer segmentation plays a key role in improving supply chain management by implementing appropriate marketing strategies. The objectives of this research are to design and validate a multicriteria model to support decision making for customer segmentation in a business to business context. First, the model based on the transactional customer behaviour is extended by a hierarchy with three main criteria: Recency, Frequency and Monetary (RFM), customer collaboration and growth rates. Customer collaboration includes quota compliance, variety of products and customer commitment to sustainability (reverse logistics and shared information). Second, the Global Local Net Flow Sorting (GLNF sorting) algorithm is implemented and validated using real company data to classify 8,157 customers of a multinational healthcare company. Third, the SILS quality indicator has been implemented and validated to assess the quality of preference-ordered customer groups and its parameters have been adapted for contexts with thousands of alternatives. The results are also compared with an alternative model based on data mining (K-means). The multicriteria system proposed allows to segment thousands of customers in ordered categories by preferences according to company strategies. The segments generated are more homogeneous, robust and understandable by managers than those from alternative methods. These advantages represent a relevant contribution to automating supply chain management while providing detailed analysis tools for decision making.

A Fuzzy Analytic Hierarchy Process Model to Evaluate Logistics Service Expectations and Delivery Methods in Last-Mile Delivery in Brazil

Nowadays, postal services and third-party logistics services (3PL) have been pressured by the increasing demand for delivery services. Therefore, they need to improve their last-mile delivery strategies to meet customers’ expectations. This paper aims to investigate how logistics service expectations affect the delivery process in urban areas using a multiple-criteria decision support system based on the Fuzzy Analytic Hierarchy Process (FAHP). We developed a decision-making model employing six criteria and five delivery methods indicated in the literature and collected information from 27 experts working in academia and local and multinational third-party logistics providers in Brazil to validate this model. The results indicate that cost (21.4%) and tracking and tracing (19.3%) are the most important two criteria in the decision model, and the best delivery methods are smart lockers (21.8%) followed by small trucks (21.3%). Our results suggest that service expectations regarding last-mile delivery are aligned with extensive use of road transport and the increase in e-commerce sales can raise greenhouse gas emissions and compromise the environment in urban areas.

Developing a multi-criteria decision support system for evaluating knowledge transfer by higher education institutions

ABSTRACTThis study sought to develop a multiple-criteria decision support system for evaluating transfers of knowledge from higher education institutions (HEIs) to society at large. Drawing on a panel of knowledge transfer specialists, we developed the evaluation system by completing the three phases of the multiple-criteria decision analysis (MCDA) approach. The structuring phase used the strategic options development and analysis (SODA) methodology and cognitive mapping techniques. The evaluation phase applied the measuring attractiveness by a categorical-based evaluation technique (MACBETH), which allowed us to evaluate HEIs’ local and overall performance. The third phase consisted of formulating recommendations. Assuming a constructivist process-oriented stance, this research included a real-world application of the proposed system to Portuguese public HEIs. Our study demonstrates that HEI administrators can use the techniques applied to make strategic decisions when seeking to foster the transfer of knowledge to society at large.

The Relationship between Non-Financial Stakeholders and Capital Structure

Financial accountong literatures have highlighted the important role of non-financial factors such as intellectual capital (IC) as a main value added factor for companies, and perceived environmental uncertainty (PEU) as unpredictable contingency factor from a dynamic environment on the corporate performance (CP). Therefore, it is important for organizations to rely more on non-financial than financial factors to achieve higher competitive advantage. Identifying the most important non-financial factors affecting corporate performance from these environments and their relationship with capital structures is the main issue in today's dynamic conditions. This research examined the relationship between non-financial factors of IC and PEU and evaluated their influence on CS directly or indirectly by considering corporate performance as mediator. Questionnaires were distributed to 339 public listed Iranian manufacturing companies selected by census. Data were analysed using structural equation modeling. The main findings of this study are IC can enhance corporate performance, PEU is positively linked to corporate performance, and corporate performance is positively linked to capital structure. The results also indicated a full mediating role of corporate performance in the relationship between PEU and capital structure. This study contributes to determining capital structure decision making, by considering IC and PEU in the context of companies in Iran. Also, we analyze intellectual capital relation with and 1) traditional vs. secular-rational values and 2) survival vs. self-expresion values. Based on the analysis of existing knowledge, neutral networks, expert and decision support systems and in order to determine most effective versions of intellectual capital an Intellectual capital multiple criteria decision support (ICMCDS) system consisting of a database, databa management system, model-base, model-base management system and user interface was developed. Further in-depth research is needed to examine this links betwwen non-financial factors with different measurement perspectives and capital structure to develop a deeper understanding of their effect on capital structure.DOI: http://dx.doi.org/10.5755/j01.ee.28.4.16812

A web-based multiple criteria decision support system for evaluation analysis of carpooling

Several researches in the scientific, industrial and commercial fields are supporting the reduction of traditional combustion cars’ use. The main purpose is to increase the quality of life into the metropolitan cities through the reduction of CO2 emissions and global warming. Accordingly, one of the most successful models is the carpooling system. Currently, people are investigating the sustainability and durability of carpooling business model from both economic and organizational point of view. The present research aims to develop a Multicriteria Decision Support System (MDSS) in order to offer a carpooling system’s platform based on different criteria. The MDSS is developed from driver’s point of view and settled on two levels of optimization. Firstly, a genetic algorithm is proposed to solve an orienteering problem that optimizes the total revenue of driver based on the car’s capability and the time schedule. Secondly, the best optimization solutions are compared with multicriteria analysis respect to other criteria not included in the first optimization. The outcome of MDSS is a schedule for drivers, which gives maximum satisfaction in terms of profitability, punctuality and comfort of the travel.

SETTING RENTS IN RESIDENTIAL REAL ESTATE: A METHODOLOGICAL PROPOSAL USING MULTIPLE CRITERIA DECISION ANALYSIS

The real estate sector has been negatively affected by the recent economic recession, which has forced structural changes that impact property value and price. Recent pressures have also motivated reduced liquidity and access to credit, causing a drop in property sales and, thus, boosting the rental housing market. It is worth noting, however, that the rental housing segment is not with-out difficulties and complexity, namely in terms of legislation and rental value revaluation. In light of this reasoning, this study aims to develop a multiple criteria decision support system for calculation of residential rents. By integrating cognitive maps and the measuring attractiveness by a categorical based evaluation technique (MACBETH), we also aim to introduce simplicity and transparency in the decision making framework. The practical implications, advantages and shortfalls of our proposal are also analyzed.

A MULTIPLE CRITERIA DECISION SUPPORT SYSTEM FOR ANALYZING THE CORRELATION BETWEEN THE THICKNESS OF A THERMO-INSULATION LAYER AND ITS PAYBACK PERIOD OF THE EXTERNAL WALL

A case study provides the correlation analysis of the thickness of the thermo-insulation layer (expanded polystyrene – EPS70) of the typical details of the external wall and energy performance class in a modern newly constructed residential low-energy building (one and two-room apartment). The conducted analysis focused on what impact different geographical areas of building construction and different energy performance classes of the building may had on the thickness of the thermo-insulation layer. Lithuania was chosen as the object of this study. Calculations were carried out in seven towns, including Vilnius, Klaipeda, Kaunas, Siauliai, Panevezys, Utena and Dukstas. According to requirements for legal acts passed in the Republic of Lithuania and to Directive 2010/31/EU (2010), as a result, the necessary thickness of thermo-insulation layers (EPS70) and a payback period were calculated. A multiple criteria decision support system for analyzing the correlation between the thickness of the thermo-insulation layer and its payback period of the external wall (DSS-ACTILPW) consisting of a database, a database management system, a model-base, a model-base management system and a user interface was developed. Information on the performed analysis is important to building designers, energy consumption auditors and investment experts who make the final decisions on energy efficiency of buildings in the residential building sector.

A cloud-based multi-criteria decision support system for selecting urban housing projects

Abstract This paper proposes a Cloud based multiple criteria decision support system (DSS) for Selecting Urban Housing Sustainable Development Projects in order to help the decision makers to choose the best urban project with conflicting criteria. The DSS is deployed on a platform Cloud (CloudBees) and managed by the OpenStack infrastructure. The Cloud based multiple criteria DSS we designed and implemented has significant advantages. It reduces the deployment and processing time, ameliorates the communication and the cooperation between the decision makers, facilitates the accessibility, and decrease the cost. The DSS is built on the Cloud Computing architecture with three layers and includes the multiple criteria decision making (MCDM) method PROMETHEE II as well as the procedure of negotiation Hare in order to help the decision makers to select the best urban project.

Measurements of risk in fisheries management

An important goal in many fisheries management problems is perceived to be minimisation of risk. This paper examines the problem of measuring risk by means of meaningful attributes or surrogate measures, for use in multiple criteria decision support systems. It is found that exponential utility functions, which are associated in this context with geometric discounting of the future, give a poor fit in many cases relative to power functions. The implication is that conventional mean-variance measures of risk may be less appropriate than cumulative probability measures.

Optimization of Weighted Aggregated Sum Product Assessment

One of important parts of every computer-aided multiple criteria decision support system is selection of a proper MCDM (Multiple Criteria Decision Making) method. WSM (Weighted Sum Model) and WPM (Weighted Product Model) are analyzed in the current research. The aim of the research is to measure the accuracy of the latter methods and to propose a method to increase the ranking accuracy of alternatives. It is proposed to apply joint WASPAS (Weighted Aggregates Sum Product Assessment) method. Methodology for evaluation of accuracy, based on initial criteria values, is developed. Optimization of weighted aggregated function is suggested, that enables to reach the highest accuracy of measurement. An example of application of the proposed methodology is presented. Ill. 3, bibl. 15, tabl. 4 (in English; abstracts in English and Lithuanian). DOI: http://dx.doi.org/10.5755/j01.eee.122.6.1810

MULTIPLE CRITERIA DECISION SUPPORT SYSTEM FOR ASSESSMENT OF PROJECTS MANAGERS IN CONSTRUCTION

Construction processes planning and effective management are extremely important for success in construction business. Head of a design must be well experienced in initiating, planning, and executing of construction projects. Therefore, proper assessment of design projects' managers is a vital part of construction process. The paper deals with an effective methodology that might serve as a decision support aid in assessing project managers. Project managers' different characteristics are considered to be more or less important for the effective management of the project. Qualifying of managers is based on laws in force and sustainability of project management involving determination of attributes value and weights by applying analytic hierarchy process (AHP) and expert judgement methods. For managers' assessment and decision supporting is used additive ratio assessment method (ARAS). The model, presented in this study, shows that the three different methods combined (ARAS method aggregated together with the AHP method and the expert judgement method) is an effective tool for multiple criteria decision aiding. As a tool for the assessment of the developed model, was developed multiple criteria decision support system (MCDSS) weighting and assessment of ratios (WEAR) software. The solution results show that the created model, selected methods and MCDSS WEAR can be applied in practice as an effective decision aid.

Multi-Objective Decision-Making In Supplier Selection: An Application Of Visual Interactive Goal Programming

<span>Supplier selection by purchasing teams in a supply chain management environment is inherently a multi-objective problem. The authors discuss one of the multiple criteria decision support systems; Visual Interactive Goal Programming (VIG), to assist purchasing teams in their vendor selection decisions. VIG is based on a multi-criteria technique known as Pareto Race. Two examples illustrate the application of VIG in different multi-objective supplier selection environments. The first example demonstrates the allocation of a single product among multiple vendors, while the second example focuses on a multiple-replenishment purchasing problem in selecting supplier and allocating orders among them. The authors conclude with a discussion of VIGs benefits and limitations.</span>

INTEGRATED MODEL AND SYSTEM FOR PASSIVE HOUSES MULTIPLE CRITERIA ANALYSIS / INTEGRUOTAS PASYVIŲJŲ NAMŲ DAUGIAKRITERINĖS ANALIZĖS MODELIS IR SISTEMA

In order to design and implement a high-quality passive house project, it is neces sary to take care of its efficiency from the brief stage to the end of its life's service. The entire process should be planned and executed with a consideration of the goals that are aspired to by the participating and interested parties and the micro, meso and macro environment levels. In order to realize the above purposes, an original Model for an Integrated analysis of Passive Houses and Passive Houses Design Multiple Criteria Decision Support System was developedby the authors, enabling one to analyze a passive house's life cycle, the parties involved in the project and its micro, meso and macro environment as one integrated entity. Santrauka Norint suprojektuoti ir įgyvendinti kokybišką pasyvųjį namą, reikia jo efektyvumu rūpintis nuo projekto idėjos iki pasyviojo namo gyvavimo ciklo pabaigos. Visas procesas turi būti suplanuotas ir įgyvendintas atsižvelgiant į suinteresuotų projekto grupių siekiamus tikslus ir mikro-, mezo- bei makroaplinką. Tikslams įgyvendinti buvo sukurtas originalus integruotas pasyviųjų namų analizės modelis ir pasyviųjų namų projektų analizės daugiakriterinė sprendimų paramos sistema, kuria remiantis galima analizuoti pasyviojo namo gyvavimo ciklą, suinteresuotas projekto grupes ir projekto mikro-, mezo- bei makroaplinką kaip vieną integruotą visumą.

Model for a Complex Analysis of Intelligent Built Environment

The purpose of intelligent built environment is to improve inhabitant's quality of life and to satisfy inhabitants by replacing routine work with smart devices and robots. Smart devices and robots can interpret changes in the built environment and respond appropriately. The problem is how to define a rational intelligent built environment when many various stakeholders are involved, projects have thousands of alternative versions and the quality of life and economical efficiency changes with alterations in micro and macro environmental conditions and the constituent parts of the process in question. Moreover, the realization of some objectives seems more rational from the economic perspective though their significance is varied from other perspectives. The formalized Model for Complex Analysis of Intelligent Built Environment and the Multiple Criteria Decision Support System of Intelligent Built Environment developed by the authors of this paper show how changes in project alternatives and the extent to which the goals of various stakeholders are satisfied cause respective changes in the value and utility degree of a project. To achieve the above-mentioned aims new multiple criteria analysis methods were developed.

A multiple criteria decision support system for autonomous underwater vehicle mission planning and control

The growing use of autonomous air, surface, ground and underwater systems is continually demonstrating new military and commercial possibilities and applications. The state of the art in the planning and control of autonomous underwater vehicles (AUVs) is largely precarious because AUVs provide infrequent feedback, operate autonomously for long periods of time and yet have little knowledge of their dynamic environment. Consequently, mission planning and control is typically conducted based on human expert knowledge of vehicle capabilities, some level of observed environmental conditions and ad hoc optimisation with little assistance from computers. While the human expert offers a significant ability to mentally process data, the result typically lacks numeric and quantitative analysis of alternatives. Navigation of AUVs in the complex ocean environment involves time dependent dynamics, resulting in a problem that is computationally prohibitive for the use of brute force optimisation techniques. Although some research has been conducted for specific types of missions, and 'greedy' global-optimisation approaches have been investigated, no systematic and coherent approach to the requirement exists. We propose a dynamic multiple criteria decision support system that considers dynamic and episodic ocean phenomenon to provide reasonable and in-context recommendations with respect to the stated objective and subjective mission goals. Multi-criteria decision analysis, analytic network process and fuzzy sets are used in the model to reduce the vehicle routing solution space and maximise time-on station in adverse environments. The proposed system can be an added hierarchical layer on the top of a mission planning system currently under development by the United States Navy.

MULTIPLE‐CRITERIA DECISION SUPPORT SYSTEM IN HIGHWAY INFRASTRUCTURE MANAGEMENT

Highway infrastructure represents a significant part of the public assets, and through its lifetime, is exposed to various deterioration processes leading to the depreciation of its value. It is therefore of vital importance to manage these assets aiming to reduce the loss of their value with time to a minimum. A typical task of road managers is making decisions related to maintenance, repair and rehabilitation based on data regarding the existing condition, risk of its use, life cycle costs and age. Road infrastructure is complex, and therefore the optimal choice of planned interventions is a delicate task often left to the road managers’ subjective judgment. The main goal of research work presented in the paper is the development of a multiple criteria decision support system to determine the priority ranking of asset rehabilitation projects. Results are presented for a selected case study that consists of 27 overpasses for a highway section. The data on the condition of crossovers obtained by regular inspection along their contribution to a structured database are essential. The selection of the set of asset rehabilitation projects is carried out by using the developed decision support system that includes the budget constraint option. The selected set of asset maintenance/rehabilitation projects meets best the pre‐defined combination of several criteria and therefore yields the maximized overall benefit. The results showing the selection criteria employed in the decision process and relative importance are crucial in obtaining the targeted goals. The selected criteria should therefore reflect the needs of the users and the actual conditions related to the assets.

Assessing desalination as a sustainable alternative using a multiple criteria decision support model

Desalination technologies provide an alternative for potable water production, having significant potential for application where fresh water scarcity exists. Potential benefits have to be balanced with other factors, such as high costs, high energy consumption, and significant environmental impacts, for the understanding of real risks and gains of desalination within the context of integrated water resources management. Multiple factors can be considered when analysing the viability of a desalination project but often a limited approach is used. The complexity in the analysis lies in finding the alternatives that obey to multiple objectives (e.g. reduced environmental impact, social acceptance, less cost associated). In this paper, development of a methodology based on multiple criteria decision support system for the evaluation and ranking the potential of desalination technologies is described and applied to a Portuguese case study. Relevant factors to the selection of desalination technologies were identified using SWOT analysis and the MACBETH (Measuring Attractiveness by a Categorical Based Evaluation Technique) approach was applied. Technical alternatives considered include reverse osmosis and multi-effect desalination (MED), together with energy production by fossil fuels or solar energy. Production of water by conventional approaches was also considered. Results, for non-economic benefits, show higher score for MED solar but, in the cost-benefit analysis, conventional methods of water production have higher ranking since costs of renewable energies are not yet competitive. However, even if not preferred in economic terms, desalination is ranked significantly above the conventional approaches for non-economic criteria.

A Model of Criteria System for Evaluation of Construction Contraction Agreements

Construction contract is one of the steps of the construction process. In order to conclude acceptable and thoughtout construction contracts, effective methodologies for their evaluation and comparison must be developed. In order to solve various legal problems, electronic legal decision support systems have been developed in the world. Application of the electronic legal decision support systems can help to navigate in the legal system easier, makes additional reading of legal acts redundant, creates opportunities to analyse decision variants and to select the most favourable one, provides users with the newest and most extensive information, enables quick search and can use classification and information transfer features. In order to conclude acceptable and well-thought construction contraction agreements, effective methodologies for their evaluation and comparison must be developed. In order to prepare such methodologies, it is necessary to analyse not only technical, organisational and economic aspects in construction but also legal aspects of a construction contraction agreement. Management of construction works includes conclusion of contracts between the client and the contractor. Contract making has great influence on economic success of both parties, on their behaviour in order to increase their profit and it can protect against possible loss. This article analyses construction contraction agreements by providing a model of construction contraction agreement provisions based on their functions. Construction contraction agreements should be concluded, evaluated and compared on the basis of this model. Values of indicators are determined and a multiple criteria decision support system is developed on the basis of this model.

INCREASING EFFICIENCY OF MULTIPLE LISTING SERVICE SYSTEMS APPLYING WEB‐BASED DECISION SUPPORT SYSTEM FOR REAL ESTATE

One of the major problems in Multiple Listing Service Systems is to find what you want. Number of real estate alternatives on the Internet is thousands. How can customers find the rational alternative on the Internet? Once real estate is found, the customer usually wants to compare alternatives. There are five types of aids to comparison shopping: search on hypertext files by agents, search alternatives on databases, alternative search and tabular comparison, comparison of alternative products and services from multiple malls, search and multiple criteria decision‐making. Therefore, the efficiency of Multiple Listing Service Systems may be increased by applying multiple criteria decision support systems developed by authors. The authors have developed Web‐based Decision Support System for Real Estate (DSS‐RE). Proposed DSS‐RE can create value in next important ways: help customers assess their needs, identify suitable real estate to fulfil needs, compare and evaluate real estate, help customers evaluate the usefulness of the real estate in the after‐purchase evaluation stage, etc.

Increasing efficiency of multiple listing service systems applying web‐based decision support system for real estate

One of the major problems in Multiple Listing Service Systems is to find what you want. Number of real estate alternatives on the Internet is thousands. How can customers find the rational alternative on the Internet? Once real estate is found, the customer usually wants to compare alternatives. There are five types of aids to comparison shopping: search on hypertext files by agents, search alternatives on databases, alternative search and tabular comparison, comparison of alternative products and services from multiple malls, search and multiple criteria decision‐making. Therefore, the efficiency of Multiple Listing Service Systems may be increased by applying multiple criteria decision support systems developed by authors. The authors have developed Web‐based Decision Support System for Real Estate (DSS‐RE). Proposed DSS‐RE can create value in next important ways: help customers assess their needs, identify suitable real estate to fulfil needs, compare and evaluate real estate, help customers evaluate the usefulness of the real estate in the after‐purchase evaluation stage, etc. Naudojimosi nekilnojamojo turto agentų duomenų bazėmis efektyvumo didinimas taikant internetinę nekilnojamojo turto sprendimų paramos sistemą Santrauka Autoriai atliko pasaulyje naudojamų nekilnojamojo turto agentų duomenų bazių apibrėžimų apžvalgą ir išnagrinėjo Lenkijoje ir Rusijoje sukurtas nekilnojamojo turto agentų duomenų bazes. Remiantis šių duomenų bazių analizė, siekiant padidinti naudojimosi jomis efektyvumą, sukurta internetinė nekilnojamojo turto vertinimo daugiakriterinė sistema. Internetinėje nekilnojamojo turto vertinimo daugiakriterinėje sistemoje realizuota daugiakriterinė alternatyvų analizės sistema, leidžianti vartotojui išsirinktus nekilnojamojo turto objektus lyginti remiantis kiekybiniais ir kokybiniais kriterijais. Sistema atlieka alternatyvų paiešką bei daugiakriterinę analizę nustatant alternatyvų prioritetiškumą, naudingumo laipsnį bei rinkos vertę. Raktiniai žodžiai: nekilnojamojo turto agentų duomenų bazės, internetinė nekilnojamojo turto sprendimų paramos sistema, daugiakriterinis įvertinimas First Published Online: 14 Oct 2010