ABSTRACT
Multiple criteria decision making (MCDM) is frequently used to deal with conflict problems in management. Practical problems are often characterized by several noncommensurable and conflicting (competing) criteria, and there may be no solution satisfying all criteria simultaneously. Therefore, using MCDM, a compromise solution for a problem with conflicting criteria can be determined, which can help the decision makers to improve the problems for achieving the final decision. Yu (1973) and Zeleny (1982) proposed the foundation for compromise solutions. The compromise solution is a feasible solution closest to the ideal/aspired level, compromise meaning an agreement established by mutual concessions. The VIKOR technique introduced the multicriteria ranking index based on the particular measure of closeness to the ideal/aspired level solution and was introduced as one applicable technique to implement within MCDM (Tzeng et al. 2002). This method focuses on ranking, improving, and selecting from a set of alternatives in the presence of conflicting criteria to help the decision makers to relax the trade-offs for reaching the aspired levels (Opricovic and Tzeng 2007). Its characteristics are to provide “the maximum group utility” and “the minimum individual regret,” so decision makers can accept the VIKOR-proposed compromise solution. The VIKOR method was developed as an MCDM method to solve discrete decision problems with non-commensurable and conflicting criteria (Tzeng et al. 2002, 2005; Opricovic and Tzeng 2002, 2004, 2007). However, few papers discuss conflicting (competing) criteria with dependence and feedback within this compromise solution method. Therefore, this research adopts the VIKOR technique based on the analytic network process (ANP) and DEMATEL (Decision Making Trial and Evaluation Laboratory) methods to achieve the goal of solving this problem involving conflicting criteria with dependence and feedback.
