CHAPTER 15CHAPTER 15

DEALING WITH DEALING WITH MULTIATTRIBUTED DECISIONSMULTIATTRIBUTED DECISIONS

MULTIATTRIBUTED DESCIONSMULTIATTRIBUTED DESCIONS

• Decision making includes both monetary Decision making includes both monetary and nonmonetary considerations and nonmonetary considerations ((attributesattributes).).

• Value (as conceived by Aristotle in Value (as conceived by Aristotle in

350 B.C.) includes: (1) economic350 B.C.) includes: (1) economic

(2) moral (3) aesthetic (4) social (5) political(2) moral (3) aesthetic (4) social (5) political

(6) religious (7) judicial.(6) religious (7) judicial.

EXAMPLES OF EXAMPLES OF MULTIATTRIBUTED DECISIONSMULTIATTRIBUTED DECISIONS

• Selection of 1Selection of 1stst permanent professional job permanent professional job by an engineering graduateby an engineering graduate

(insert Table 15-1)(insert Table 15-1)

EXAMPLES OF EXAMPLES OF MULTIATTRIBUTED DECISIONSMULTIATTRIBUTED DECISIONS

• Selection of a CAD workstationSelection of a CAD workstation

(insert Table 15-2)(insert Table 15-2)

CHOICE OF ATTRIBUTESCHOICE OF ATTRIBUTES• Each attribute distinguishes at least two alternativesEach attribute distinguishes at least two alternatives

• Each attribute captures a unique dimension or facet of the Each attribute captures a unique dimension or facet of the decision problem (i.e., attributes are independent and decision problem (i.e., attributes are independent and nonredundantnonredundant

• Attributes, in a collective sense, are assumed to be Attributes, in a collective sense, are assumed to be sufficient for the purpose of selecting the best alternativesufficient for the purpose of selecting the best alternative

• Differences in values assigned to each attribute are Differences in values assigned to each attribute are presumed to be meaningful in distinguishing among presumed to be meaningful in distinguishing among feasible alternativesfeasible alternatives

DIMENSIONALITY OF THE PROBLEMDIMENSIONALITY OF THE PROBLEM

• Compensatory models – collapses all Compensatory models – collapses all information into a single dimension – information into a single dimension – changes in the values of a particular changes in the values of a particular attribute can be offset, or traded off attribute can be offset, or traded off against, opposing changes in another against, opposing changes in another attributeattribute

• Noncompensatory models – retain the Noncompensatory models – retain the individuality of the attributes as the best individuality of the attributes as the best alternative is being determined – full alternative is being determined – full dimensional analysis – trade-offs among dimensional analysis – trade-offs among attributes are not permittedattributes are not permitted

NONCOMPENSATORY MODELSNONCOMPENSATORY MODELS

• DominanceDominance

• SatisficingSatisficing

• Disjunctive ResolutionDisjunctive Resolution

• LexicographyLexicography

NONCOMPENSATORY MODELSNONCOMPENSATORY MODELS

• Dominance – screening method for eliminating inferior Dominance – screening method for eliminating inferior alternativesalternatives

• Satisficing – method of feasible ranges – establishes Satisficing – method of feasible ranges – establishes minimum or maximum acceptable values (the minimum or maximum acceptable values (the standard) for each attributestandard) for each attribute

• Disjunctive Resolution – similar to satisficing, except Disjunctive Resolution – similar to satisficing, except this method evaluates each alternative on the “best” this method evaluates each alternative on the “best” value achieved for any attributevalue achieved for any attribute

• Lexicography – especially suitable for decisions in Lexicography – especially suitable for decisions in which a single attribute is judged more important than which a single attribute is judged more important than all other attributesall other attributes

NONCOMPENSATORY MODELS - NONCOMPENSATORY MODELS - ExampleExample

• Selection of a dentistSelection of a dentist

(insert Table 15-3)(insert Table 15-3)

NONCOMPENSATORY MODELS – NONCOMPENSATORY MODELS – Dentist ExampleDentist Example

• DominanceDominance

(insert Table 15-4)(insert Table 15-4)

NONCOMPENSATORY MODELS – NONCOMPENSATORY MODELS – Dentist ExampleDentist Example

• SatisficingSatisficing

(insert Table 15-5)(insert Table 15-5)

NONCOMPENSATORY MODELS – NONCOMPENSATORY MODELS – Dentist ExampleDentist Example

• Ordinal Ranking of AttributesOrdinal Ranking of Attributes

(insert Table 15-6)(insert Table 15-6)

NONCOMPENSATORY MODELS – NONCOMPENSATORY MODELS – Dentist ExampleDentist Example

• LexicographyLexicography

(insert Table 15-7)(insert Table 15-7)

COMPENSATORY MODELS COMPENSATORY MODELS

• Basic principle behind all compensatory Basic principle behind all compensatory models, which involve a single models, which involve a single dimension, is that values for all dimension, is that values for all attributes must be converted to a attributes must be converted to a common measurement scale such as common measurement scale such as dollars or utiles.dollars or utiles.

• A utile is a dimensionless unit of worth.A utile is a dimensionless unit of worth.

COMPENSATORY MODELS –COMPENSATORY MODELS –Dentist ExampleDentist Example

• Nondimensional ScalingNondimensional Scaling

(insert Table 15-8)(insert Table 15-8)

COMPENSATORY MODELS –COMPENSATORY MODELS –Dentist ExampleDentist Example

• Nondimensional DataNondimensional Data

(insert Table 15-9)(insert Table 15-9)

COMPENSATORY MODELS –COMPENSATORY MODELS –Dentist ExampleDentist Example

• Hurwicz ProcedureHurwicz Procedure

(insert Table 15-10)(insert Table 15-10)

COMPENSATORY MODELS –COMPENSATORY MODELS –Dentist ExampleDentist Example

• Hurwicz ProcedureHurwicz Procedure

(insert Table 15-11)(insert Table 15-11)

COMPENSATORY MODELS – COMPENSATORY MODELS – Dentist ExampleDentist Example

• Additive Weighting TechniqueAdditive Weighting Technique

(insert Table 15-1)(insert Table 15-1)

COMPENSATORY MODELS – COMPENSATORY MODELS – Worth of MaterialWorth of Material

• Additive Weighting TechniqueAdditive Weighting Technique

(insert Table 15-13)(insert Table 15-13)

COMPENSATORY MODELS – COMPENSATORY MODELS – Worth of MaterialWorth of Material

• Additive Weighting TechniqueAdditive Weighting Technique

(insert Tables 15-14 and 15-15)(insert Tables 15-14 and 15-15)

SUMMARYSUMMARY

Insert section 15.8Insert section 15.8