Multicriteria decision making based on marginal criteria concessions and rates of substitution
- 1 — Ph.D., Dr.Sci. professor National Mineral Resources University (Mining University)
- 2 — Ph.D. associate professor National Mineral Resources University (Mining University)
Abstract
To obtain weight coefficients for a linear convolution of partial criteria, expert evaluation of rates of substitution is proposed. The notion of rate of substitution is less subjective and more straightforward than that of «normalized indicator weight». The drawback of linear convolutions, ubiquitous in scalarization of vector criteria, is their lack of sensitivity to the deviation of vectors under comparison from some reference (target) vector. Power Weighted Mean (PWM) scalarization procedure, named harmonization, encourages approach to the ratio of indicators of a target vector as well as improvement of separate components of vector criterion. To obtain the parameters of a PWM, experts evaluate every indicator’s marginal concession. The later is defined as the greatest deviation of the indicator towards deterioration from its target value, which can be compensated for the account of ideal values of all other indicators. The possibility to realize convolution in the form of a PWM, providing at the same time the set rates of substitution for the target vector, the set marginal concession for the indicator with the greatest weight and acceptable values of marginal concessions for other indicators, is shown. Examples of forming an integral criterion of performance excellence for blooms, slabs, and bigots manufacturing processes are presented.
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