Advanced multi-criteria decision-making technique to describe the relationship between criteria and select optimal alternatives

Abstract

The current study proposes a new approach that is a combination of methods: fuzzy and decision-making trial and evaluation laboratory (DEMATEL) and distance-based approximation (DBA) so that decision-makers can determine the relationship structures between criteria, how the criteria affect each other, and the weight of each criterion. From that, managers can quickly and easily evaluate and select the best alternative. A previous study using DEMATEL and grey relational analysis (GRA) is presented as an example. Data from this previous study are used to present the implementation process and results of the proposed method and simultaneously show the results of the current problem solved by the fuzzy DEMATEL – TOPPSIS (technique for order of preference by similarity to ideal solution) method. The comparison of results between three methods including DEMATEL – GRA, fuzzy DEMATEL – TOPPSIS, and fuzzy DEMATEL – DBA is performed to demonstrate the efficiency of the proposed method. The results show that there is a slight difference in weights between fuzzy DEMATEL and DEMATEL but the error is extremely low. In addition, the correlation of results between methods is very high. Particularly, correlation coefficients between fuzzy DEMATEL and DEMATEL, between fuzzy DEMATEL – TOPPSIS and fuzzy DEMATEL – BDA, and between DEMATEL – GRA and fuzzy DEMATEL – BDA are 0.99, 0.95, and 0.78 respectively. Finally, all three methods suggest alternative 4 as the best option.