The Use of a Modification of the Hurwicz’s Decision Rule in Multicriteria Decision Making Under Complete Uncertainty

Abstract

The paper concerns multicriteria decision making under uncertainty with scenario planning. This topic is explored by many researchers because almost all real-world decision problems have multiple conflicting criteria and a deterministic criteria evaluation is often impossible (e.g. mergers and acquisitions, new product development). We propose two procedures for uncertain multi-objective optimization (for dependent and independent criteria matrices) which are based on the SAPO method – a modification of the Hurwicz’s rule for one-criterion problems, recently presented in another paper. The new approaches take into account the decision maker’s preference structure and attitude towards risk. It considers the frequency and the level of extreme evaluations and generates logic rankings for symmetric and asymmetric distributions. The application of the suggested tool is illustrated with an example of marketing strategies selection.

A decision rule based on goal programming and one-stage models for uncertain multi-criteria mixed decision making and games against nature

“…There are many classical and extended decision rules designed for multi-criteria decision making under uncertainty, e.g. [1], [2], [7], [8], [11], [13], [20], [24], [25], [28], [29], [34], [36], [40], [41], [42], [45], [48], [49], [50], [51], [56], [57], [58], [61], [62], [63], [65], [66], [71], [74], [75], [76], however the majority of the methods refer to probability calculus. Hence, those contributions are not directly related to the topic investigated in this paper, since here we concentrate on totally new decision problems for which frequencies are not known.…”

“…Conclusions are gathered in the last Section. The paper is a continuation of several articles, where uncertain one-criterion procedures [16], [18], [22] and multi-criteria decision rules for 2-stage models [20], [24], [25] were investigated.…”

On two applications of the Omega ratio: max?min and Omega(H+B) / O dwóch zastosowaniach wskaźnika Omega: max?min i Omega(H+B)

“…The literature offers numerous decision rules for DMPI [Guo 2013;Kmietowicz, Pearman 1984;Kofler, Zweifel 1993;Michalska, Pośpiech 2010;, Michalska 2012Weber 1987] and for DMCU [Gaspars 2007;GasparsWieloch 2013;2014a;2014b;2014c;2014d;2014e;2015a;2015b;2015c;2015d;2015e;2016;Hayashi 2008;Hurwicz 1952;Ioan, Ioan 2011;Piasecki 1990;Savage 1961;Wald 1950], but here we only investigate the use of the Ω ratio in these two decision cases.…”

A Decision Rule for Uncertain Multi-Criteria Pure Decision Making and Independent Criteria

“…According to [Durbarch, Stewart, 2012;Michnik, 2013] MDMU+SP models can be divided into two classes (the description below has been prepared on the basis of [Gaspars-Wieloch, 2014d;2015c;2015d;2017]). The first one (A) includes 2-stage models in which evaluations of particular alternatives are estimated in respect of scenarios and criteria in two separate stages.…”

“…Conclusions are gathered in the last Section. The paper is a continuation of several articles, where uncertain one-criterion procedures [Gaspars-Wieloch, 2007;2014a;2014c;2015b;2016b] and multi-criteria decision rules [Gaspars-Wieloch, 2014d;2015c;2015d;2017] are investigated.…”