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Introduction Of Decision

Making
resources: Weighting Methods and their Efects
on Multi-Criteria Decision Making Model
Outcomes in Water Resources Management,
Tentative guidelines to help choosing an
appropriate MCDA method

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Decision-Making Process [1]

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Steps

1. Problem in hand is clearly defned.

2. Some other important requirements are then
listed on which the solution of multi-criteria model
was dependent.

3. Objectives or goals of the multi-criteria problem
are established.

4. deals with the establishment of alternatives
which are going to be considered in a decision-
making process with objective to choose the best
alternative.

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5. Evaluation criteria are decided. The criteria
should satisfy some previously fied standards.
For eiample, the chosen criterion may change its
value in space and time.

6. The siith step of the process is very important
as it involves the selection of an appropriate
multi-criteria decision making method for solving
the problem in hand. Later the chosen MCDM
method is applied to the list of alternatives which
was fnalized in Step 4 of the decision process

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7. Later the chosen MCDM method is
applied to the list of alternatives which was
fnalized in Step 4 of the decision process

8. Final step of the decision-making process
is checking the results of the model and
performing sensitivity analysis test.

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multi-criteria decision making

Defne multi-criteria problem and objectives eiplicitly.

List and describe alternatives for meeting objectives or goals.

Defne criteria/attributes/performance indicators to measure
performance of alternatives.

Carry out studies to gather data and evaluate criteria.

Prepare a decision matrii by arranging alternatives against
criteria.

Elicit criteria subjective or objective weights for criteria.

Rank alternatives and communicate results with interest groups.

Decision-makers make decisions with input of interest group and
get MCDM results.

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began in 1971

The main objective of MCDM is to provide
decision-makers with a tool in order to
enable them to advance in solving a multi-
criteria decision problem, where several
conflicting criteria are taken into account

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Classifcation of MCDM

AHP: Analytic Hierarchy Process

ANP: Analytic Network Process

ELECTRE: Elimination Et Choii Traduisant la Realite (French)—
(Elimination and Choice Translating Reality) (English)

GP: Goal Programming

MACBETH: Measuring Attractiveness by a Categorical Based Evaluation
Technique

MAUT: Multi-Attribute Utility Theory

MAVT: Multi-Attribute Value Theory

PROMETHEE: Preference Ranking Organization Method for Enrichment
Evaluation

TOPSIS: Technique for Order Preference by Similarity to Ideal Solution

WSM: Weighted Sum Model

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Three categories of MCDM

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Elementary

This proposes methods which alternate
calculation steps, giving successive
compromising solutions, and dialog steps,
leading to an eitra source of information on
the decision-maker’s preferences

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Unique synthesis criterion approach

It consists of aggregating the diferent
points-of-view into a unique function which
will be optimized

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Outranking synthesis approach

It consists in the development of a
relationship called an outranking
relationship, which represents the decision-
maker’s preferences, the relationship being
eiplored in order to help the decision-
maker solve his/her problems

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Characteristics of MCDM

Not all MCDM methods are recommended for
solving any multi-criteria decision problem.

Some MCDM methods can only take quantitative
data to process with evaluation phase of the
decision-making and some can work with both
types of data (quantitative and qualitative).

There are also some other characteristics of
multicriteria decision-making methods, e.g.
transparency and cost

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How to Select an Appropriate
MCDM Method [2]

There is no single MCDM method which
can be superior method for all decision-
making problems

Diferent MCDM methods will yield
diferent recommendations

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Guideline G1: Determine the stakeholders of the
decision process. If there are many decision
makers (judges), one should think about group
decision making methods or group decision
support systems (GDSS).

Guideline G2: Consider the DM `cognition' (DM
way of thinking) when choosing a particular
preference elucidation mode. If he is more
comfortable with pairwise comparisons, why
using tradeofss and vice versa?

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Guideline G3: Determine the decision
problematic pursued by the DM. If the DM
wants to get an alternatives ranking, then a
ranking method is appropriate, and so on.

Guideline G4: Choose the MCAP that can handle
properly the input information available and for
which the DM can easily provide the required
information; the quality and the quantities of the
information are major factors in the choice of the
method.

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Guideline G5: The compensation degree of the MCAP
method is an important aspect to consider and to
eiplain to the DM. If he refuses any compensation,
then many MCAP will not be considered.

Guideline G6: The fundamental hypothesis of the
method are to be met (veri®ed) otherwise one should
choose another method

Guideline G7: The decision support system coming with
the method is an important aspect to be considered
when the time comes to choose a MCDA method.

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The Role of Weights MCDM

Weights of criteria play an important role for
measuring overall preferences of alternatives.
Because of having diferent aggregation rules,
MCDM methods use these weights in diferent
ways.

diferentvweighting methods have been developed
to use them in diferent MCDM methods.

It is very importance that the decision-maker
(DM) understands the true meaning of these
weights

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the interpretations of criteria
weights in MCDM

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Classifcation of Weighting Methods

Weights assigned to criteria in multi-criteria
evaluation method is an important step as
fnal results of the multi-criteria decision-
making method largely depend on such
weights

The simplest way to assign weights to
criteria is ‘equal weights method’ that
distributes weights equally among all the
criteria

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The main purpose of a weighting method is
to attach cardinal or ordinal values to
diferent criteria to indicate their relative
importance in a multi-criteria decision-
making method.

These values are then used by the MCDM
method in subsequent evaluation of the
alternative

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A classifcation of weighting
methods

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Subjective Weighting Methods

Criteria weights are derived from the decision- maker’s
judgment on criteria.

This means that the subjective methods are to
determine weights solely according to the preferences of
decision makers.

Criteria weights determined by the subjective weighting
methods reflect the subjective judgment of the decision-
maker, but analytical results or rankings of alternatives
based on the weights can be influenced by the decision
maker due to his/her level of knowledge and eiperience
in the relevant feld

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Objective Weighting Methods

In the objective weighting methods, preferences of
decision maker on multiple criteria are not involved and
the criteria weights are obtained from mathematical
algorithms or models.

The objective methods determine criteria weights by
solving mathematical models automatically without any
consideration of the decision maker’s preferences.

Objective weighting methods determine criteria weights
by making use of the mathematical models, but they
neglect the subjective judgment information of the
decision maker

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Popular subj weighting methods

Direct Rating

Ranking Method

Point Allocation

Pairwise Comparison

Ratio Method

Swing Method

Graphical Weighting

Delphi Method

Simple multi-attribute ranking technique (SMART)

SIMOS Method

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Popular Obj Weighting Methods

Entropy method.

Criteria Importance Through Inter-criteria
Correlation (CRITIC)

Mean Weight.

Standard Deviation.

Statistical Variance Procedure.

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Future Reading

[1] N. H. Zardari, K. Ahmed, S. M. Shirazi, and
Z. B. Yusop, “Literature Review,” in Weighting
Methods and their Efects on Multi-Criteria
Decision Making Model Outcomes in Water
Resources Management, Springer, 2015, pp. 7–67.

[2] A. Guitouni and J.-M. Martel, “Tentative
guidelines to help choosing an appropriate
MCDA method,” Eur. J. Oper. Res., vol. 109, no.
2, pp. 501–521, 1998.

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