scholarly journals Multi-Criteria Analysis for Business Location Decisions

Mathematics ◽  
2021 ◽  
Vol 9 (20) ◽  
pp. 2615
Author(s):  
Virginia Perez-Benitez ◽  
German Gemar ◽  
Mónica Hernández
Keyword(s):  
Decision Problem ◽  
Geometric Analysis ◽  
Decision Makers ◽  
Strategic Decision ◽  
Preference Ranking ◽  
Location Decisions ◽  
European Cities ◽  
Multi Criteria Analysis ◽  
Hierarchy Process ◽  
A Company

Choosing the physical place in which to locate a company or make investments is a strategic decision that managers must make when their business activities begin and as they expand. These decisions are key to firms’ survival. This study sought to shed light on this decision problem and assist managers in making these decisions. The first research objective was to examine the different dimensions that decision makers should consider regarding locations. The second objective was to test the efficacy of multi-criteria analysis methods regarding this decision problem. More specifically, this study applied a combination of the preference ranking organization method for enrichment of evaluations and the geometric analysis for interactive aid method, complemented by the analytical hierarchy process. The last objective was to rank major European cities on their suitability as business locations. The results include a preferential ranking of 66 European cities. London is the best positioned in all dimensions, followed by Paris and Barcelona. The findings’ originality comes from the inclusion of dimensions such as climate, security, and technology, which are given little weight in other similar indices, as well as the fresh approach to this decision problem from a business perspective and the combination of methodologies.

scholarly journals MULTI CRITERIA DECISION MAKING – RANKING AND PROMOTING EMPLOYEES

2019 ◽  
Vol 31 (5) ◽  
pp. 1235-1241
Author(s):  
Marina Badarovska Mishevska
Keyword(s):  
Decision Making ◽  
Decision Problem ◽  
Decision Makers ◽  
Decision Making Process ◽  
Specific Situation ◽  
Mathematical Tool ◽  
Analytic Hierarchy ◽  
The Right ◽  
Term Performance ◽  
Hierarchy Process

The analytic hierarchy process (AHP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. The method was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then. It has particular application in group decision making and is used around the world in a wide variety of decision situation. Rather than prescribing a "correct" decision, the AHP helps decision makers choose one that best suits their goal and their understanding of the problem. The technique provides a comprehensive and rational framework for structuring a decision problem, for representing and quantifying its elements, for relating those elements to overall goals, and for evaluating alternative solutions. Decision making is the choice of one alternative, from two or more, to which the course of the activity is directed and the problem is solved. The decision-making process is a rational attempt by the manager to achieve the goals of the organizational unit. The decision-making process can be thought of as a "brain and nervous system" of an enterprise. Decisions are made when a person wants things to be different in the future. Given each specific situation, making the right decisions is probably one of the most difficult challenges for managers. Managers in day-to-day work deliver programmed and unprogrammed decisions that solve simple or complex problems. Simple decisions have an impact on the short-term performance of the enterprise, and complex decisions have an impact on the long-term future and success of the enterprise. Users of the AHP first decompose their decision problem into a hierarchy of more easily comprehended sub-problems, each of which can be analyzed independently. Once the hierarchy is built, the decision makers systematically evaluate its various elements by comparing them to each other two at a time, with respect to their impact on an element above them in the hierarchy. The AHP converts these evaluations to numerical values that can be processed and compared over the entire range of the problem. In this article, it is explained the application of the AHP method in order to evaluate and promote employees in the enterprise "X" with several criteria. The obtained results enable the manager to evaluate the employees in an objective way and make an objective decision for their promotion. Its application for selecting the best among employees, in their assessment and promotion, allows managers to use a specific and mathematical tool to support the decision. This tool not only supports and qualifies decisions, it also allows managers to justify their choice, as well as to simulate possible results.

Multi-Criteria Decision Making: A Systematic Review

2021 ◽  
Vol 14 ◽  
Author(s):  
Nayli Adriana Azhar ◽  
Nurul Asyikin Mohamed Radzi ◽  
Wan Siti Halimatul Munirah Wan Ahmad
Keyword(s):  
Decision Making ◽  
Pairwise Comparison ◽  
Decision Makers ◽  
Preference Ranking ◽  
Multi Criteria Decision Making ◽  
Complex Problems ◽  
Current Implementation ◽  
Network Process ◽  
Complete Survey ◽  
Hierarchy Process

: Multi Criteria Decision Making (MCDM) helps decision makers (DMs) solve highly complex problems. Accordingly, MCDM has been widely used by DMs from various fields as an effective and reliable tool for solving various problems, such as in site and supplier selection, ranking and assessment. This work presents an in-depth survey of past and recent MCDM techniques cited in the literature. These techniques are mainly categorised into pairwise comparison, outranking and distance-based approaches. Some well-known MCDM methods include the Analytical Hierarchy Process (AHP), Analytical Network Process (ANP), Elimination et Choix Traduisant la Realité (ELECTRE), Preference Ranking Organization METHod for Enrichment of Evaluations (PROMETHEE), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR). Each of these methods is unique and has been used in a vast field of interest to support DMs in solving complex problems. For a complete survey, discussions related to previous issues and challenges and the current implementation of MCDM are also presented.

scholarly journals APPLICATION OF A SWOT-FANP METHOD

2013 ◽  
Vol 19 (4) ◽  
pp. 570-592 ◽  
Author(s):  
Yun-Huei Lee
Keyword(s):  
Swot Analysis ◽  
Analytic Network Process ◽  
Decision Makers ◽  
Strategic Decision ◽  
Planning Tool ◽  
Strategy Formulation ◽  
Relative Priority ◽  
Analytic Hierarchy ◽  
Network Process ◽  
Hierarchy Process

Strengths, weaknesses, opportunities, and threats (SWOT) analysis is an effective strategic planning tool for the development of strategy formulation, but its main weakness is being incapable of quantitatively determining the weights and effects of alternative strategic criteria. Some studies’ use of SWOT with analytic hierarchy process (AHP) would enable decision-makers to obtain-through pairwise comparisons-a relative priority of each criterion, so that the results from quantitative measures could overcome SWOT's central shortcoming. However, these studies neglect critical relationships or dependencies among SWOT factors. In this study, I propose a quantitative SWOT that rests on fuzzy analytic network process (FANP) methodology, includes possible dependencies among SWOT factors and permits the elimination of decision-makers’ uncertain and vague preferences. To this end, I chose the Taiwan biotech pharmaceutical industry as an illustrative example. This study demonstrates and validates that such an enhanced methodology is viable and highly capable of providing enriched insights regarding strategic decision-making management in complex real-world situations.

scholarly journals Evaluate and Rank the Smartphone Brand Using Fuzzy AHP and PROMETHEE

2019 ◽  
Vol 14 (2) ◽  
pp. 44-51
Author(s):  
Diana Sirmayunie Mohd Nasir ◽  
Nurshahira Zawawi ◽  
Suzanawati Abu Hasan
Keyword(s):  
Decision Making ◽  
Fuzzy Ahp ◽  
Multiple Criteria Decision Making ◽  
Decision Makers ◽  
Preference Ranking ◽  
Analytic Hierarchy ◽  
System Memory ◽  
Future Work ◽  
Hierarchy Process ◽  
Selection Of

A buying decision process is one of the Multi-Criteria Decision Making (MCDM) problems faced by everyone in daily life. One example is the selection of smartphones brand in the market. Thus, the study is conducted to evaluate the most effective criteria for buying smartphones and to rank the people's preferences on smartphone based on its brand. Six criteria (price, operating system, memory, display, camera and battery) and three alternatives which are the smartphone brands (Oppo, Samsung and Apple) were chosen in the study. Two main processes were involved, which are 1) evaluate the smartphone criteria using Fuzzy Analytic Hierarchy Process (AHP) and 2) ranking the brand using Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE). Surveys and questionnaires were conducted and evaluated by decision makers who are the smartphone's users. The result showed storage memory is considered as prominent criteria in choosing a smartphone meanwhile the consumers firstly prefer Oppo, secondly Apple and thirdly Samsung. Future work in this study may use other alternatives to be ranked by considering other top models as well. Keywords: Multiple criteria decision making, smartphone brand, Fuzzy AHP, Fuzzy PROMETHEE  

Managing strategic paradoxes: the influence of demographic characteristics of decision-makers

2020 ◽  
Vol 33 (5) ◽  
pp. 835-858
Author(s):  
Aldona Glińska-Neweś ◽  
Iwona Escher ◽  
Barbara Józefowicz ◽  
Alicja Łuka
Keyword(s):  
Organizational Performance ◽  
Educational Background ◽  
Individual Characteristics ◽  
Decision Makers ◽  
Strategic Decision ◽  
Strategic Choices ◽  
Content Type ◽  
Significant Research ◽  
Research Gap ◽  
A Company

PurposeTogether with increasing ambiguity and frequency of changes, management becomes full of seemingly conflicting choices, i.e. paradoxes, coming up in the process of decision-making. Successful management of paradoxes, i.e. treating them as “both/and” constructs leads to innovative solutions and better overall organizational performance. In response to a significant research gap regarding antecedents of managing paradoxes, the aim of the paper is to investigate how individual characteristics of strategic decision-makers, specifically their age, tenure and educational background, affect the ability to combine contradictions in their strategic choices.Design/methodology/approachAn empirical study was conducted among 201 managers representing furniture companies in Poland. The CATI technique with an interview questionnaire was adopted in order to identify respondents' opinions on the main features, traits and dimensions of the strategy implemented in their companies. Participants' tenure, age and education were measured by single items.FindingsThe study suggests that the ability to manage paradoxes increases with age and tenure in a company and at a current position. At the same time economic/business educational background appears to be unsupportive in this regard.Originality/valueWhile the issue of managing paradoxes energizes researchers in various disciplines, we still do not know much about antecedents of the process. The study shed light on effects that managers' demographics have on their ability of managing paradoxes. It contributes to the theory on strategic paradoxes as well as theory on the influence of decision-makers' individual characteristics on their decisions.

scholarly journals Penggunaan Metode Analytic Hierarchy Process dalam Pengambilan Keputusan Penentuan Prioritas Program Kerja Dompet Dhuafa Yogyakarta

Telaah Bisnis ◽  
2016 ◽  
Vol 16 (1) ◽  
Author(s):  
Djoko Wijono ◽  
Idham Ibty
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Decision Problem ◽  
Secondary Data ◽  
Decision Makers ◽  
Analytic Hierarchy ◽  
Good Point ◽  
Hierarchy Process ◽  
Alternative Solutions ◽  
Made In

Abstract Manager always faced to make a choice from various alternatives. Here the necessary prioritization and test the consistency of the choices that have been made. In complex situations, decision-making is not influenced by one factor alone but is multifactorial and includes various levels and interests. The analytic hierarchy process (AHP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then. The AHP helps decision makers find one that best suits their goal and their understanding of the problem. It provides a comprehensive and rational framework for structuring a decision problem, for representing and quantifying its elements, for relating those elements to overall goals, and for evaluating alternative solutions. In this study, AHP used for decission making in Dhompet Dhuafa planning programs. First we decompose their decision problem into a hierarchy of more easily comprehended sub-problems, The elements of the hierarchy can relate to any aspect of the decision problem. The AHP converts these evaluations to numerical values that can be processed and compared over the entire range of the problem. This study use metodhologies: brain storming discuss, indepth interview, and collect secondary data. Find Dhompet Dhuafa solution problems by AHP.The good point of this study is showed how to use AHP for decision making.

scholarly journals Penentuan Karyawan Terbaik Home Industry Ramayana Menggunakan Metode Analytical Hierarchy Process (AHP)

2019 ◽  
Vol 1 (01) ◽  
pp. 35-41
Author(s):  
Rina Nuryana Fajriya ◽  
Azhar Firdaus ◽  
Ahmad Faisal
Keyword(s):  
Decision Making ◽  
Analytical Hierarchy Process ◽  
Business Owners ◽  
Decision Makers ◽  
Business Owner ◽  
Ahp Method ◽  
Permanent Employees ◽  
Hierarchy Process ◽  
A Company ◽  
Selection Of

Employees in the company are the main resources required to be able to provide the best service and optimal performance. The selection of the best employees in a company is very important because it will determine the company's progress in the future. A home industry in East Kotawaringin Regency has 3 permanent employees. This Ramayana cracker business owner wants to know the best performance of his 3 employees, one of the effective ways in selecting employees is by implementing a decision support system and by using the Analytical Hierarchy Process (AHP) method, we make this research to help business owners to their problem is solved. This study aims to complete practical decision making and have alternative choices for decision-makers, in order to choose the best employees in their home industry. The results of this study are aimed at home industry business owners in order to find out the best employees in this Ramayana home industry business.

scholarly journals MULTI-CRITERIA DECISION-MAKING FOR SELECTION OF RENEWABLE ENERGY SYSTEMS

2013 ◽  
Vol 3 (3) ◽  
Author(s):  
Milica Stojanovic
Keyword(s):  
Decision Making ◽  
Renewable Energy ◽  
Analytical Hierarchy Process ◽  
Energy Systems ◽  
Decision Makers ◽  
Multi Criteria Decision Making ◽  
Suitable Alternative ◽  
Renewable Energy Systems ◽  
Multi Criteria Analysis ◽  
Hierarchy Process

Multi-criteria analysis involves defining each criterion using attributes, based on a suitable alternative for achieving objectives. The method used in multi-criteria analysis is Analytical Hierarchy Process. Analytical hierarchical process (AHP) is a tool in the analysis of decision making, created in order to assist decision-makers in solving complex decision problems involving large number of decision makers, large number of criteria and in multiple time periods. AHP method is used for selecting the best renewable energy systems. The aim is to, by using the method of AHP, demonstrate which of the analyzed renewable sources of energy is the most convenient to be used in a sustainable system. Key words:energy, multi-criteria decision making, analytical hierarchy process

scholarly journals GREEN RATING INTEGRATION PLATFORM – A DECISION MAKING TOOL FOR MULTI-MODAL FACILITIES: CREDIT HARMONIZATION AND A SUSTAINABLE WATER & MATERIAL PRACTICES CASE STUDY

2014 ◽  
Vol 9 (4) ◽  
pp. 161-173 ◽  
Author(s):  
Ashraful Alam ◽  
Liv Haselbach ◽  
Garrett DeRooy ◽  
Cara Poor ◽  
Michael Wolcott
Keyword(s):  
Decision Making ◽  
Analytical Hierarchy Process ◽  
Decision Makers ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Rating Systems ◽  
Integration Platform ◽  
Hierarchy Process ◽  
Decision Making Tool

There are multitudes of sustainability rating systems and guidelines, and it is difficult to decide which ones to use and how to use them. In addition, multi-modal projects have different focal areas and associated rating systems related to each mode or other aspect of the project. Five green ratings systems representative of aspects of a multi-modal ferry facility had previously been selected and were used in a four step methodology to synthesize into a strategic decision making platform. This current research focuses on how to make more detailed decision making harmonization amongst the credits in the rating systems. Using an analytical hierarchy process (AHP) of the credits in the rating systems, it was determined that the two main groups of information that could be used for harmonization were key intents or goals (KI) and key strategies or practices (KS). A short cursory case study example of how these KIs and KSs might be further cross-coded in an open database with the credit subcategories and corresponding rating systems is also presented. The database can filter the credit subcategories across the rating system for a specific key intent or key strategy. The harmonized lists and database may facilitate decision makers and construction managers in correlating intents and methodologies for a project across multiple rating systems.

A Soft Hierarchical Process Approach for Decision Making in A Supply Chain

2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Rajeev Dhingra ◽  
Preetvanti Singh
Keyword(s):  
Decision Making ◽  
Process Approach ◽  
Decision Makers ◽  
Analytic Hierarchy ◽  
Conflicting Objectives ◽  
Realistic View ◽  
Hierarchy Process ◽  
Pair Wise Comparison ◽  
Supplier Selection Problem ◽  
Selection Of

Decision problems are usually complex and involve evaluation of several conflicting criteria (parameters). Multi Criteria Decision Making (MCDM) is a promising field that considers the parallel influence of all criteria and aims at helping decision makers in expressing their preferences, over a set of predefined alternatives, on the basis of criteria (parameters) that are contradictory in nature. The Analytic Hierarchy Process (AHP) is a useful and widespread MCDM tool for solving such type of problems, as it allows the incorporation of conflicting objectives and decision makers preferences in the decision making. The AHP utilizes the concept of pair wise comparison to find the order of criteria (parameters) and alternatives. The comparison in a pairwise manner becomes quite tedious and complex for problems having eight alternatives or more, thereby, limiting the application of AHP. This paper presents a soft hierarchical process approach based on soft set decision making which eliminates the least promising candidate alternatives and selects the optimum(potential) ones that results in the significant reduction in the number of pairwise comparisons necessary for the selection of the best alternative using AHP, giving the approach a more realistic view. A supplier selection problem is used to illustrate the proposed approach.

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