1. CHAPTER 15 DEALING WITH MULTIATTRIBUTED DECISIONS

2. MULTIATTRIBUTED DESCIONS Decision making includes both monetary and nonmonetary considerations (attributes).Decision making includes both monetary and nonmonetary considerations (attributes). Value (as conceived by Aristotle inValue (as conceived by Aristotle in 350 B.C.) includes: (1) economic 350 B.C.) includes: (1) economic (2) moral (3) aesthetic (4) social (5) political (2) moral (3) aesthetic (4) social (5) political (6) religious (7) judicial. (6) religious (7) judicial.

3. EXAMPLES OF MULTIATTRIBUTED DECISIONS Selection of 1 st permanent professional job by an engineering graduateSelection of 1 st permanent professional job by an engineering graduate (insert Table 15-1) (insert Table 15-1)

4. EXAMPLES OF MULTIATTRIBUTED DECISIONS Selection of a CAD workstationSelection of a CAD workstation (insert Table 15-2) (insert Table 15-2)

5. CHOICE OF ATTRIBUTES Each attribute distinguishes at least two alternativesEach attribute distinguishes at least two alternatives Each attribute captures a unique dimension or facet of the decision problem (i.e., attributes are independent and nonredundantEach attribute captures a unique dimension or facet of the decision problem (i.e., attributes are independent and nonredundant Attributes, in a collective sense, are assumed to be sufficient for the purpose of selecting the best alternativeAttributes, in a collective sense, are assumed to be sufficient for the purpose of selecting the best alternative Differences in values assigned to each attribute are presumed to be meaningful in distinguishing among feasible alternativesDifferences in values assigned to each attribute are presumed to be meaningful in distinguishing among feasible alternatives

6. DIMENSIONALITY OF THE PROBLEM CompensatoryCompensatory models – collapses all information into a single dimension – changes in the values of a particular attribute can be offset, or traded off against, opposing changes in another attribute NoncompensatoryNoncompensatory models – retain the individuality of the attributes as the best alternative is being determined – full dimensional analysis – trade-offs among attributes are not permitted

7. NONCOMPENSATORY MODELS DominanceDominance SatisficingSatisficing DisjunctiveDisjunctive Resolution LexicographyLexicography

8. NONCOMPENSATORY MODELS DominanceDominance – screening method for eliminating inferior alternatives SatisficingSatisficing – method of feasible ranges – establishes minimum or maximum acceptable values (the standard) for each attribute DisjunctiveDisjunctive Resolution – similar to satisficing, except this method evaluates each alternative on the “best” value achieved for any attribute LexicographyLexicography – especially suitable for decisions in which a single attribute is judged more important than all other attributes

9. NONCOMPENSATORY MODELS - Example SelectionSelection of a dentist (insert Table 15-3)

10. NONCOMPENSATORY MODELS – Dentist Example DominanceDominance (insert Table 15-4)

11. NONCOMPENSATORY MODELS – Dentist Example SatisficingSatisficing (insert Table 15-5)

12. NONCOMPENSATORY MODELS – Dentist Example OrdinalOrdinal Ranking of Attributes (insert Table 15-6)

13. NONCOMPENSATORY MODELS – Dentist Example LexicographyLexicography (insert Table 15-7)

14. COMPENSATORY MODELS BasicBasic principle behind all compensatory models, which involve a single dimension, is that values for all attributes must be converted to a common measurement scale such as dollars or utiles. Autile is a dimensionless unit of worth.

15. COMPENSATORY MODELS – Dentist Example NondimensionalNondimensional Scaling (insert Table 15-8)

16. COMPENSATORY MODELS – Dentist Example NondimensionalNondimensional Data (insert Table 15-9)

17. COMPENSATORY MODELS – Dentist Example HurwiczHurwicz Procedure (insert Table 15-10)

18. COMPENSATORY MODELS – Dentist Example HurwiczHurwicz Procedure (insert Table 15-11)

19. COMPENSATORY MODELS – Dentist Example AdditiveAdditive Weighting Technique (insert Table 15-1)

20. COMPENSATORY MODELS – Worth of Material AdditiveAdditive Weighting Technique (insert Table 15-13)

21. COMPENSATORY MODELS – Worth of Material AdditiveAdditive Weighting Technique (insert Tables 15-14 and 15-15)

22. SUMMARY Insert section 15.8