A Handbook on Multi-Attribute Decision-Making Methods

BA Benchmark Example and a Comparison between Objective‐ and Subjective‐Based MADM Methods

Recall there are two primary schools of multiattribute decision‐making (MADM) thought available to decision‐makers in their quest for finding the most desirable alternatives with regard to a set of, often conflicting, attributes. First, there are objective‐based MADM methods. In essence, these methods provide an objective framework to opt for the solution, that is to say, such approaches are centered on the numeric characteristics of the decision matrix. Alternatively, there are subjective‐based MADM methods. Here, the methods mostly revolve around the insight and intuition of the decision‐makers to select the most desirable alternative. While both classes have their unique merits and drawbacks, which was discussed in length throughout the book, it is crucial to understand how each class approaches a MADM problem from a practical point‐of‐view. As such, this appendix aims to exhibit the application of both classes of MADM methods through a practical benchmark problem. Technique for order preferences by similarity to an ideal solution (TOPSIS) and analytic hierarchy process (AHP) methods are herein selected to represent the objective‐ and subjective‐oriented MADM methods, respectively (see Chapters 3 and 6 for more information on each method).

The benchmark problem describes a case where a traveling agency advertises three distinctive locations for the upcoming holiday. In terms of MADM ...