Evaluating Supplier Involvement Using DEA and Piecewise Triangular Fuzzy AHP

Author(s):  
Shouhua Yuan ◽  
Yiliu Tu ◽  
Deyi Xue

Data Envelopment Analysis (DEA) has been widely applied in evaluating multi-criteria decision making problems which have multi-inputs and multi-outputs. However, the traditional DEA method does neither take the decision maker’s subjective preferences to the individual criteria into consideration, nor rank the selected options or decision making units (DMUs). On the other hand, Satty’s Analytical Hierarchy Process (AHP) was established to rank options or DMUs under multi-inputs and multi-outputs through pairwise comparisons. But in most cases, the AHP pairwise comparison method is not perfectly consistent, which may give rise to confusions in determining the appropriate priorities of each criterion to be considered. The inconsistency implicates the fuzziness in generating the relative important weight for each criterion. In this paper, a novel method which employs both DEA and AHP methods is proposed to evaluate the overall performance of suppliers’ involvement in the production of a manufacturing company. This method has been developed through modifying the DEA method into a weighting constrained DEA method by using a piecewise triangular weighting fuzzy set which is generated from the inconsistent AHP comparisons. A bias tolerance ratio (BTR) is introduced to represent the varying but restrained weighting values of each criterion. Accordingly, the BTR provides the decision maker a controllable parameter by tightening or loosening the range of the weighting values in evaluating the overall performance of available suppliers, which in hence, overcomes the two weaknesses of the traditional DEA method.

Author(s):  
Shouhua Yuan ◽  
Xiao Liu ◽  
Yiliu Tu ◽  
Deyi Xue

Data envelopment analysis (DEA) has been widely applied in evaluating multicriteria decision making problems, which have multi-input and multi-output. However, the traditional DEA method does neither take the decision maker’s subjective preferences to the individual criteria into consideration nor rank the selected options or decision making units (DMUs). On the other hand, Satty’s analytical hierarchy process (AHP) was established to rank options or DMUs under multi-input and multi-output through pairwise comparisons. However, in most cases, the AHP pairwise comparison method is not perfectly consistent, which may give rise to confusions in determining the appropriate priorities of each criterion to be considered. The inconsistency implicates the fuzziness in generating the relative important weight for each criterion. In this paper, a novel method, which employs both DEA and AHP methods, is proposed to evaluate the overall performance of suppliers’ involvement in the production of a manufacturing company. This method has been developed through modifying the DEA method into a weighting constrained DEA method by using a piecewise triangular weighting fuzzy set, which is generated from the inconsistent AHP comparisons. A bias tolerance ratio (BTR) is introduced to represent the varying but restrained weighting values of each criterion. Accordingly, the BTR provides the decision maker a controllable parameter by tightening or loosening the range of the weighting values in evaluating the overall performance of available suppliers, which in hence, overcomes the two weaknesses of the traditional DEA method.


Author(s):  
G. Marimuthu ◽  
G. Ramesh

Decisions usually involve the getting the best solution, selecting the suitable experiments, most appropriate judgments, taking the quality results etc., using some techniques.  Every decision making can be considered as the choice from the set of alternatives based on a set of criteria.  The fuzzy analytic hierarchy process is a multi-criteria decision making and is dealing with decision making problems through pairwise comparisons mode [10].  The weight vectors from this comparison model are obtained by using extent analysis method.  This paper concern with an alternate method of finding the weight vectors from the original fuzzy AHP decision model (moderate fuzzy AHP model), that has the same rank as obtained in original fuzzy AHP and ideal fuzzy AHP decision models.


2017 ◽  
Vol 5 (2) ◽  
pp. 128-147 ◽  
Author(s):  
Fang Liu ◽  
Yanan Peng ◽  
Weiguo Zhang ◽  
Witold Pedrycz

Abstract The analytic hierarchy process (AHP) is used widely for analyzing decisions made in various real-world applications. Its basic idea is to construct a hierarchy of concepts encountered in a given decision problem and to choose the best alternative according to pairwise comparison matrices given by the decision maker. Under the assumption of fully rational economics, a reasonable decision should be consistent. It becomes an important issue on how to analyze and ensure the consistency of comparison matrices together with the judgments of the decision maker. The main objectives of the present paper are threefold. First, we review the basic idea and methods used to define the consistency and the transitivity of multiplicative reciprocal matrices, additive reciprocal matrices and comparison matrices with fuzzy interval and triangular fuzzy numbers. The existing controversy behind the applications of fuzzy set theory to the AHP in the literature is presented. Second, the consistency of the collective comparison matrices in group decision making based on AHP and fuzzy AHP is further analyzed. We point out that the weak consistency of preference relations with fuzzy numbers in fuzzy AHP and group decision making should be investigated comprehensively. Third, under the consideration of the vagueness in the process of evaluating the judgements, a new concept of fuzzy consistency of comparison matrices in the AHP is given.


Author(s):  
Bradley Greaver ◽  
Leo Raabe ◽  
William P Fox ◽  
Robert E Burks

This article examines the use of a weighting scheme with a multi-attribute decision-making (MADM) process to improve the CARVER center of gravity analysis that is currently used by Special Operations Forces. We employ Saaty’s Analytical Hierarchy Process (AHP) pairwise comparison method to obtain initial decision maker weights for the decision-making process as an example for a generalizable mission. Firstly, we show the standard current CARVER method, as outlined in FM 34-36. Next, we apply several MADM methods using our suggested AHP weighting scheme to obtain the rankings of the alternatives. We compare the results and provide sensitivity analysis to examine the robustness of each MADM analysis. We conclude that any decision methodology for CARVER that includes a weighting scheme by each decision maker is better than not using any weighting scheme.


2018 ◽  
Vol 24 (4) ◽  
pp. 1280-1302 ◽  
Author(s):  
Ahmet Çalik ◽  
Nimet Yapici Pehlivan ◽  
Cengiz Kahraman

Due to the differences between regions and sub-regions in the countries, some problems come out especially in economic and social life. The issue of differences of regions has been widely implemented to evaluate the economic performance of Turkey in many disciplines. The objective of this paper is to evaluate the efficiency of 26 sub-regions of NUTS-2 classification using integration Fuzzy Analytic Hierarchy Process (FAHP) with Data Envelopment Analysis (DEA). The integrated FAHP/DEA method comprises two stages. In the first stage, linguistic terms are used to determine the decision makers’ opinion and are converted to quantitative forms by using FAHP methods. Subsequently, in the second stage, DEA method is applied to obtain relative efficiency of sub-regions in Turkey. The integrated FAHP/DEA method is illustrated with a real case study.


Author(s):  
A. G. Cauba Jr. ◽  
P. H. C. Coniato

Abstract. Development of economic zones has been rapid in recent years and considered as one of the effective ways of promoting regional growth. Butuan City is categorized as a highly urbanized city and a regional center of Caraga which brings a huge impact to the economic growth in the region. Multi-Criteria Decision-Making Approach (MCDMA) using the pairwise comparison method of the Analytical Hierarchy Process (AHP) and the Geographic Information System techniques were integrated to identify the suitable locations for economic zones. There were nine (9) criteria used in this study such as roads, transport hubs, commercial areas, police station, electric post, water bodies, slope, land use and labor force. Suitability map was produced and used as basis for the analysis. The result of the analysis shows that in Butuan City, an area of 32.15 sq. km is considered highly suitable, 365.96 sq. km is moderately suitable, and 248.43 sq. km is low suitable. Most of the areas are considered as moderately suitable for the establishment of economic zones. The information derived from this study would be helpful to the local government of Butuan City and other agencies in determining suitable areas for economic zones. With this information, they may be able to implement solutions in finding the best location for each ecozone which will attract investors and create employment and other opportunities in the city.


2017 ◽  
Vol 8 (3) ◽  
pp. 1-44 ◽  
Author(s):  
Darius Danesh ◽  
Michael J. Ryan ◽  
Alireza Abbasi

This study proposes a novel method for portfolio selection/decision making that combines the Portfolio Theory (PT), Analytic Hierarchy Process (AHP) and Data Envelopment Analysis (DEA) cross-efficiency technique. It takes into account the profits, risks and proficiency of a portfolio and is shown to be useful for selecting one with positive and negative data and subsequently measuring its efficiency using AHP, with a consistency test conducted to verify the objectivity of the results. To test the applicability of the proposed model, it is used to determine the efficiency levels of ten of the largest companies in Australia for the years 2014 and 2015. Two criteria, namely, the expected return and variance, are used to identify the preference status of each company. The results indicate that the proposed model is feasible and adoptable for the contemporary industrial scenario as it simultaneously analyses profits, risks and proficiency.


2014 ◽  
Vol 68 (1) ◽  
pp. 162-183 ◽  
Author(s):  
Bekir Sahin ◽  
Yunus Emre Senol

Marine accident analysis is a sophisticated and complex official interpretation that requires a professional and fair judgment. For accidents such as a collision, contact and other incidents in the maritime field, the judgment mechanism of the courts depends on the decision process of the field experts. Field experts define the “Fraction Defectives” (FDs) of the vessels for the intended case based on the existing evidence and navigational specifications. However, evaluation of human judgment can be limited and problematic in analysing many aspects of a case. In this paper, a pairwise comparison method is used to simplify and clarify the judgment process. We aim to assess marine accidents in a stepwise approach that is inaccurately carried out in a holistic perspective by the field experts. A real accident that occurred in the past is simulated in front of the field experts. After conducting an expert consultation, FDs are re-calculated to compare both the regular judgment and the results in our suggested Generic Fuzzy Analytical Hierarchy Process (GF-AHP) approach.


2014 ◽  
Vol 2014 ◽  
pp. 1-16 ◽  
Author(s):  
Haiqing Zhang ◽  
Aicha Sekhari ◽  
Yacine Ouzrout ◽  
Abdelaziz Bouras

Satisfying consistency requirements of pairwise comparison matrix (PCM) is a critical step in decision making methodologies. An algorithm has been proposed to find a new modified consistent PCM in which it can replace the original inconsistent PCM in analytic hierarchy process (AHP) or in fuzzy AHP. This paper defines the modified consistent PCM by the original inconsistent PCM and an adjustable consistent PCM combined. The algorithm adopts asegment treeto gradually approach the greatest lower bound of the distance with the original PCM to obtain the middle value of an adjustable PCM. It also proposes a theorem to obtain the lower value and the upper value of an adjustable PCM based on two constraints. The experiments for crisp elements show that the proposed approach can preserve more of the original information than previous works of the same consistent value. The convergence rate of our algorithm is significantly faster than previous works with respect to different parameters. The experiments for fuzzy elements show that our method could obtain suitable modified fuzzy PCMs.


Liquidity ◽  
2018 ◽  
Vol 2 (1) ◽  
pp. 100-109
Author(s):  
Ellya Sestri

An increasingly rapid technological progress in the era of globalization in the business world, so do not rule out the possibility that a decision-making is something that is very vital in determining the decisions to be taken in the face of competitive business world. Decision making can be influenced by several aspects, this can affect the speed of decision making by the decision maker in which decisions must be quick and accurate. Lecturer Performance Assessment Using the Analytical Hierarchy Process is a decision support system that aims to assess faculty performance according to certain criteria. This system of faculty performance appraisal criteria to map a hierarchy, where each hierarchy will be performed pairwise comparison, the pairwise comparisons between criteria, so to get a comparison of the relative importance of criteria with each other. The results of this comparison is then analyzed to obtain the priority of each criterion. Once completed and performed an assessment of alternative options to be compared and calculated to obtain the best alternatives according to established criteria.


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