Evaluating Consulting Firms Using a Centroid Ranking Approach based Fuzzy MCDM Method

Abstract

The purpose of this paper is to evaluate and select consulting firms by suggesting a centroid ranking approach based fuzzy multiple criteria decision making (MCDM) method, where ratings of alternatives versus qualitative criteria and the different importance weights among criteria are assessed in linguistic values represented by fuzzy numbers. Criteria are categorized to qualitative, benefit quantitative and cost quantitative ones. Membership functions of the final fuzzy evaluation values can be developed through α-cuts and interval arithmetic. The ranking approach of Euclidean distance based on centroid points is applied to determine the ranking order of all alternatives. Formulas for the ranking procedure can be clearly derived. Finally, a numerical example is used to demonstrate the computational process of the suggested model.

A Method for Ordering of LR-Type Fuzzy Numbers: An Important Decision Criteria

“…The fuzzy matrix is a new way to represent a fuzzy number which allows consideration of the additional information about the membership function or fuzzy number, and it opens a line of research around their algebraic properties, such as inverse or eigenvalues, and how they characterize a fuzzy number. This method avoids the evaluation of expressions like a/0 or 0/0 where a is a real number, and it is very easy to calculate, overcoming the limitations discussed by [1] in the calculus of ordering.…”

“…The first group includes ordering methods based on geometric procedures for the characterization of a fuzzy number by a real number. These methods are based on the centroid, area, mode, expansions, and/or weights of fuzzy numbers, and they are considered too restrictive and far from simple (see [1]). Some of these proposals can be found in the works of [2][3][4][5][6], among others.…”

Integrating fuzzy analytic hierarchy process with PROMETHEE method for total quality management consultant selection

“…Initially, a literature review was conducted to identify various criteria and subcriteria considered by the researchers and decision-makers (Cebeci & Ruan, 2007;Cheung et al, 2002;Chow & Ng, 2007;Chu, 2011;Kabir, 2014;Ling, 2003;Ng & Chow, 2004;Omar et al, 2009;Saremi et al, 2009;Tsai et al, 2007Tsai et al, , 2009Vayvay et al, 2012). Thereafter, these criteria were placed in front of the expert panel to elicit the most appropriate and widely considered criteria from their experience and judgment for selection of TQM consultant.…”

“…Alencar and Almeida (2010) applied PROMETHEE VI to select consultants for a construction project considering three subjective (culture, design, and quality) and three objective (cost, time, and experience) criteria. Chu (2011) suggested centroid ranking approach-based fuzzy MCDM method to evaluate consulting firm. The ranking approach of Euclidean distance based on centroid points was applied to determine the ranking order of the alternatives.…”

“…evaluation, prioritization, and selection) over the available alternatives that are characterized by multiple, usually conflicting criteria (Kabir & Hasin, 2012;Padhi & Mohapatra, 2009). Real-life applications of MCDM methods require the processing of imprecise, uncertain, qualitative or vague data (Chu, 2011;Omar, Trigunarsyah, & Wong, 2009). Thus, a logical and systematic decision support tool is needed to guide manufacturing organizations for selecting appropriate TQM consultant.…”