scholarly journals Synergetic Application of Multi-Criteria Decision-Making Models to Credit Granting Decision Problems

2019 ◽  
Vol 9 (23) ◽  
pp. 5052 ◽  
Author(s):  
Vicente García ◽  
J. Salvador Sánchez ◽  
Ana I. Marqués

Although various algorithms have widely been studied for bankruptcy and credit risk prediction, conclusions regarding the best performing method are divergent when using different performance assessment metrics. As a solution to this problem, the present paper suggests the employment of two well-known multiple-criteria decision-making (MCDM) techniques by integrating their preference scores, which can constitute a valuable tool for decision-makers and analysts to choose the prediction model(s) more properly. Thus, selection of the most suitable algorithm will be designed as an MCDM problem that consists of a finite number of performance metrics (criteria) and a finite number of classifiers (alternatives). An experimental study will be performed to provide a more comprehensive assessment regarding the behavior of ten classifiers over credit data evaluated with seven different measures, whereas the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) and Preference Ranking Organization METHod for Enrichment of Evaluations (PROMETHEE) techniques will be applied to rank the classifiers. The results demonstrate that evaluating the performance with a unique measure may lead to wrong conclusions, while the MCDM methods may give rise to a more consistent analysis. Furthermore, the use of MCDM methods allows the analysts to weight the significance of each performance metric based on the intrinsic characteristics of a given credit granting decision problem.

2019 ◽  
Vol 14 (2) ◽  
pp. 44-51
Author(s):  
Diana Sirmayunie Mohd Nasir ◽  
Nurshahira Zawawi ◽  
Suzanawati Abu Hasan

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  


2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Juan Luis García Guirao ◽  
M. Sarwar Sindhu ◽  
Tabasam Rashid ◽  
Agha Kashif

Similarity measures have a great importance in the decision-making process. In order to identify the similarity between the options, many experts have established several types of similarity measures on the basis of vectors and distances. The Cosine, Dice, and Jaccard are the vector similarity measures. The present work enclosed the modified Jaccard and Dice similarity measures. Founded on the Dice and Jaccard similarity measures, we offered a multiple criteria decision-making (MCDM) model under the dual hesitant fuzzy sets (DHFSs) situation, in which the appraised values of the alternatives with respect to criteria are articulated by dual hesitant fuzzy elements (DHFEs). Since the weights of the criteria have a much influence in making the decisions, therefore decision makers (DMs) allocate the weights to each criteria according to their knowledge. In the present work, we get rid of the doubt to allocate the weights to the criteria by taking an objective function under some constraints and then extended the linear programming (LP) technique to evaluate the weights of the criteria. The Dice and Jaccard weighted similarity measures are practiced amongst the ideal and each alternative to grade all the alternatives to get the best one. Eventually, two practical examples, about investment companies and selection of smart phone accessories are assumed to elaborate the efficiency of the proposed methodology.


2009 ◽  
Vol 15 (4) ◽  
pp. 369-376 ◽  
Author(s):  
Serdar Ulubeyli ◽  
Aynur Kazaz

In this study, the ELECTRE III method, which is one of the most common techniques among multiple criteria decision‐making (MCDM) approaches, was considered in a selection problem of concrete pumps. As a methodological framework, a two‐step questionnaire survey was conducted by 70 firms that have and use concrete pumps. A solution of the problem was then found in the light of the real world data by means of ELECTRE III. The paper can be of value to researchers studying the anatomy of decision‐making in equipment selection in general and investigating selection criteria of concrete pumps in particular. It also contributes to the academic environment as an application practice of ELECTRE III to correspond with the nature of equipment selection and as an effective means for the formalization of knowledge possessed by industrial practitioners. On the practical side, ELECTRE III offers an efficient and convenient tool that forces the users into orderly and methodical thinking, and guides them in making logical and robust decisions. In addition, the example illustrated in the present study can be helpful for decision‐makers dealing with similar equipment selection issues. Santrauka Šio tyrimo ELECTRE III metodas – vienas dažniausiai taikomų metodų iš daugiatikslių sprendimo priėmimo metodų – buvo pritaikytas betono siurblių parinkimo uždaviniui spręsti. 70 įmonių buvo apklaustos dviem etapais. Tuomet buvo išspręstas realus uždavinys realiais duomenimis, taikant ELECTRE III metodą. Straipsnis gali būti naudingas tyrėjams, nagrinėjantiems įrenginių parinkimo uždavinių prigimtį ir esmę. Šis straipsnis turi akademinę ir praktinę vertę, nes išreiškia efektyvių sprendimų priėmimo proceso esmę ir pateikia tvirtą sprendimo priėmimo pagrindą. Pateiktas praktinio uždavinio sprendimas yra gera metodinė priemonė parenkant statybinius mechanizmus.


2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Rajeev Dhingra ◽  
Preetvanti Singh

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.


Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3066
Author(s):  
Michał Patyk ◽  
Przemysław Bodziony ◽  
Zbigniew Krysa

Selection and assessment of mining equipment used in open pit rock mines relies chiefly on estimates of overall exploitation cost. The rational arrangement of mining equipment and systems comprising loading machines, haul trucks and crushing plants should be preceded by a thorough analysis of technical and economic aspects, such as investment outlays and the costs of further exploitation, which largely determine the costs of mining operations and the deposit value. Additionally, the operational parameters of the mining equipment ought to be considered. In this study, a universal set of evaluation criteria has been developed, and an evaluation method has been applied for the selection of surface mining equipment and the processing system to be operated in specific mining conditions, defined by the user. The objective of this study is to develop and apply the new methodology of multi-criteria selection of open pit rock mining equipment based on multiple criteria decision-making (MCDM) procedures, to enable the optimization of loading, handling and crushing processes. The methodology, underpinned by the principles of MCDM, provides the dedicated ranking procedures, including the ELECTRE III. The applied methodology allows the alternative options (variants) to be ranked accordingly. Ultimately, a more universal methodology is developed, applicable in other surface mines where geological and mining conditions are similar. It may prove particularly useful in selection and performance assessment of mining equipment and process line configurations in mining of low-quality rock deposits. Therefore, we undertook to develop universal criteria and applications for the selection and performance assessment of process machines for surface mines, taking into account environmental aspects as well as deposit quality.


Energies ◽  
2021 ◽  
Vol 14 (11) ◽  
pp. 3200
Author(s):  
Branimir Farkaš ◽  
Ana Hrastov

Mining design is usually evaluated with different multiple-criteria decision-making (MCDM) methods when it comes to large open pit or underground ore mines, but it is not used on quarry sites. Since Croatia is mostly mining stone, the implementation of such methods in decision making of the quarry mine design is imperative but left out. In this paper, the PROMETHEE II and AHP decision-making methods are implemented on the quarry site to find out the best final quarry design contour. By implementing the MCDM methods, the best quarry model was chosen based on 22 different criteria parameters out of three final quarry designs. The chosen model is not only financially sound but also has the least environmental impact.


Materials ◽  
2021 ◽  
Vol 14 (8) ◽  
pp. 2084
Author(s):  
Raman Kumar ◽  
Rohit Dubey ◽  
Sehijpal Singh ◽  
Sunpreet Singh ◽  
Chander Prakash ◽  
...  

Total knee replacement (TKR) is a remarkable achievement in biomedical science that enhances human life. However, human beings still suffer from knee-joint-related problems such as aseptic loosening caused by excessive wear between articular surfaces, stress-shielding of the bone by prosthesis, and soft tissue development in the interface of bone and implant due to inappropriate selection of TKR material. The choice of most suitable materials for the femoral component of TKR is a critical decision; therefore, in this research paper, a hybrid multiple-criteria decision-making (MCDM) tactic is applied using the degree of membership (DoM) technique with a varied system, using the weighted sum method (WSM), the weighted product method (WPM), the weighted aggregated sum product assessment method (WASPAS), an evaluation based on distance from average solution (EDAS), and a technique for order of preference by similarity to ideal solution (TOPSIS). The weights of importance are assigned to different criteria by the equal weights method (EWM). Furthermore, sensitivity analysis is conducted to check the solidity of the projected tactic. The weights of importance are varied using the entropy weights technique (EWT) and the standard deviation method (SDM). The projected hybrid MCDM methodology is simple, reliable and valuable for a conflicting decision-making environment.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ali Jaber Naeemah ◽  
Kuan Yew Wong

PurposeThe purpose of this paper is (1) to review, analyze and assess the existing literature on lean tools selection studies published from 2005 to 2021; (2) to identify the limitations faced by previous studies; and (3) to suggest future works that are necessary to facilitate the selection of lean tools.Design/methodology/approachA systematic approach was used in order to identify, collect and select the articles. Several keywords related to the selection of lean tools were used to collect articles from different Scopus indexed journals. Next, the study systematically reviewed and analyzed the selected papers to identify the lean tools' selection method and discussed its features and limitations.FindingsAn analysis of the results showed that previous studies have adopted two types of methods for selecting lean tools. First, there are various traditional methods being used. Second, multi-criteria decision-making (MCDM) methods were commonly used in previous studies, such as the multi-objective decision-making method (MODM), single multi-attribute decision-making (MADM) methods and hybrid (MCDM). Moreover, the study revealed that the lean tools' selection methods in previous studies were based on evaluating the relationship between either lean tools and performance metrics or lean tools and waste, or both.Research limitations/implicationsIn terms of its theoretical value, the study is considered as an extension of the previous researches performed on this topic by determining and analyzing the features of the most selection methods of lean tools. Unlike previous review papers, this review had considered discussing and analyzing the characteristics and limitations of these methods. Section 2.2 of this paper reviewed some of the categories of MCDM methods as well as some of the traditional methods used in the selected previous studies. Section 2.1 of this paper explained the concept of lean management and its application benefits. Further, only three sectors were covered by the previous studies in this review paper. This study also provided recommendations for future research. Therefore, it provided researchers with a good conception of how to conduct the studies on lean tools selection. Besides, knowing the methods used in previous studies can help researchers develop new methods to select the best set of lean tools. That is, this study provided and advanced the existing knowledge base for researchers concerning lean tools selection, especially there is limited availability of review papers on this topic. Moreover, the study showed researchers the importance of the relationship between lean tools and indicators or/and performance indicators to determine the appropriate set of lean tools so that the results of future studies will be more realistic and acceptable.Practical implicationsPractically, manufacturers face a significant challenge when selecting proper lean tools. This study may enhance managers, manufacturers and company's knowledge to identify most of the methods used to choose the best set of lean tools and what are the advantages, disadvantages and limitations of these methods as well as the latest studies that have been adopted in this topic. That means this study can direct companies to prioritize the application of lean tools depending on either the manufacturing performance metrics or/and manufacturing wastes so that they avoid incorrect application of lean tools, which will add more non-value added activities to operations. Therefore companies can decrease the time and cost losses and enhancing the quality and efficiency of the performance. Correctly implementing the best set of lean tools in companies will lead in general to correctly applying lean management in corporations. Therefore, these lean tools can boost the economic aspect of companies and society through reducing waste, improving performance indicators, preserving time and cost, achieving quality, efficiency, competitiveness, boosting employee income and improving the gross domestic product. The correct lean tool selection reduces customer complaints and employee stress and improves work conditions, health, safety and labor wellbeing. Besides, the correct lean tools selection improves materials usage, energy usage, water usage and decreases liquid wastes, solid wastes and air emissions. As a result, the right selection of lean tools will have positive effects on both the environment and society. The study may also encourage manufacturers and researchers to adopt studies on lean tools selection in small- and medium-sized companies because the study referred to the importance and participation of these kinds of companies in a large proportion of the economy of developing countries. Further, the study may encourage some countries that have not previously adopted this type of study, academically and industrially to conduct lean tools selection studies.Social implicationsAs mentioned previously, the correct lean tool selection reduces customer complaints and employee stress and improves work conditions, health, safety and labor wellbeing. The proper lean tools selection improves materials usage, energy usage, water usage and decreases liquid wastes, solid wastes and air emissions. As a result, the right choice of lean tools will positively affect both the environment and society.Originality/valueThe study expanded the efforts of previous studies concerning lean management features. It provided an accurate review of most lean tools selection studies published from 2005 to 2021 and was not limited to the manufacturing sector. It further identified and briefly described the selection methods concerning lean tools adopted in each paper.


Sign in / Sign up

Export Citation Format

Share Document