Piecewise linear value functions for multi-criteria decision-making

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Abstract

Multi-criteria decision-making (MCDM) concerns selecting, ranking or sorting a set of alternatives which are evaluated with respect to a number of criteria. There are several MCDM methods, the two core elements of which are (i) evaluating the performance of the alternatives with respect to the criteria, (ii) finding the importance (weight) of the criteria. There are several methods to find the weights of the criteria, however, when it comes to the alternative measures with respect to the criteria, usually the existing MCDM methods use simple monotonic linear value functions. Usually an increasing or decreasing linear function is assumed between a criterion level (over its entire range) and its value. This assumption, however, might lead to improper results. This study proposes a family of piecewise value functions which can be used for different decision criteria for different decision problems. Several real-world examples from existing literature are provided to illustrate the applicability of the proposed value functions. A numerical example of supplier selection (including a comparison between simple monotonic linear value functions, piecewise linear value functions, and exponential value functions) shows how considering proper value functions could affect the final results of an MCDM problem.

Original languageEnglish
Pages (from-to)43-56
Number of pages14
JournalExpert Systems with Applications
Volume98
DOIs
Publication statusPublished - 2018

Bibliographical note

Green Open Access added to TU Delft Institutional Repository ‘You share, we take care!’ – Taverne project https://www.openaccess.nl/en/you-share-we-take-care Otherwise as indicated in the copyright section: the publisher is the copyright holder of this work and the author uses the Dutch legislation to make this work public.

Keywords

  • Decision criteria
  • MCDM
  • Monotonicity
  • Multi-criteria decision-making
  • Value function

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