Multi Criteria Decision Making (MCDM) is a decision-making method to determine the best alternative from a number of alternatives based on certain criteria. Criteria are usually in the form of measurements, rules or standards used in decision making.
MCDM In Toy Industry - Dolls
In Kusumadewi et al. (2006), Janko stated that there are several general features that will be used in MCDM, namely:
a. Alternative
They are different objects and have the same opportunity to be selected by the decision maker.
b. Attributes
Often also referred to as Characteristics, components, or decision criteria. Although most criteria are one level, it does not rule out the possibility of sub-criteria related to the given criteria.
c. Conflict between criteria
Some criteria usually have conflicts with each other, for example profit criteria will conflict with cost criteria.
d. Decision weight
Decision weights indicate the relative importance of each criterion, w = (w1, w2, .... , wn). In MCDM, the importance weight of each criterion will be sought.
e. Decision matrix
A decision matrix x of size m*n, contains elements xij, which represent the ratings of alternatives Ai (i = 1,2,....,m) against criteria Cj (j = 1,2,....,n).
Classification of MCDM methods
Some methods that can be used to solve MCDM problems include the following:
- Simple Additive Weighting Method (SAW)
- Weighted Product Model (WPM)
- Technique for Order Preference by Similarity to Ideal Solution (TOPSIS)
- Analytic Hierarchy Process (AHP)
Reference:
- http://paginas.fe.up.pt/~mac/ensino/docs/OR/Multicriteria.pdf
- MCDM 3rd Meeting Module, compiled by Andri Syafrianto, S.Kom., M.Cs