Quantitative Methods

Quantitative Methods Case Studies Multi Criteria Decision Making (20 Marks) MCDA. (multi criteria decision analysis) is considered to be one of the fastest growing research operations in the last several years. The researcher focus towards MCDA led to development of many different approaches and ways in the field. There are two types of procedures: theoretical assumptions and decision addressed type. This difference throws challenges to the procedure of choosing the most ideal method for the decision making problem. Most of the time, the initial approach towards applying MCDA in the real world problems relates to the set up of simple understanding Of the context and recognizing the problem of decision.

This step includes the ones who make decisions and other important participants who make important contributions for the MCDA procedure by sharing their knowledge. The common insight of the decision framework is received by knowing the goals of the decision making body and recognizing not only those people who make decisions but also those who face the decision. Dooley (2009) says that the first three steps take up more time in the process of MCDA, particularly because of their qualitative features. Assigning of comparative significant weights to the selected criteria is the next step: These weights can be ascertained directly, for example ranking, swing, trade off; or indirectly, for example- centrality, regression and interactive. Later, the DM has to give individual scores, considering his or her views, to each of the recognized options according to the criteria which seem vital. These scores show the decision of DM. related to spreading of each substitute to every performance standard.

The information which is attained is maintained distinctively into performance template, which is also as consequence matrix, options matrix, or just decision table. The next process includes abstract of the information consisting of the performance matrix in the form of multi criteria scores, for every possible plan. Mostly, this is attained by combining the individual scores of matrix so that total valuation of.each substitute which allows more comparison. The groups of substitute ranked on the basis of all these scores. Finally, the procedure can include a warm evaluation of the outcome to amendments in the scores or criteria, to conclude the sturdiness of the result of MCDA. At the end, the analysis and tradeoffs included in the respective choices are given to and conferred with the DM.

Answer the following question. Q1. What role does MCDA play in decision making? (Hint: MCDA is considered to be one of the fastest growing research operations, these scores show the decision of DM related to spreading of each substitute to every performance standard) Q2. What does MCDA stand for? (Hint: multi criteria decision analysis)