ABSTRACT

This chapter begins with the two popular multiple attribute decision making (MADM) methods: the analytic hierarchy process and the analytic network process, both proposed by T. L. Saaty. An aggregator is required to integrate the weighting system with the performance scores of the alternatives to form the final evaluation; the ranking or selection decision can thus be made. A ranking or selection problem in traditional MADM might force decision makers to accept a relatively outperformed alternative from a group of inferior candidates. The potential drawbacks and limitations of those traditional MADM and aggregation methods have led to the development of certain new hybrid MADM methods, and the ways to adopt these new hybrid MADM methods are discussed for practical problem solving. The modified vikor method is applied to determine the compromise solution for two main purposes: to make ranking or selection decisions and to form a priority for a specific alternative to plan for systematic improvement.