Multi-Criteria Decision Making Techniques and Application Areas

Decision making is the process by which individuals and organizations select the most suitable option among various alternatives to achieve their goals. This process may vary depending on the nature of the problems faced by the decision maker. Situations requiring the consideration of multiple criteria can complicate the decision-making process. Multi-Criteria Decision Making Techniques (MCDMT) developed for such cases provide a systematic and objective approach, helping decision makers arrive at more informed and balanced decisions. These techniques, widely used in business, engineering, public management, and many other fields, enable the resolution of complex problems opportunity.

Core Methods of Multi-Criteria Decision Making Techniques

Weighted Scoring Method

The weighted scoring method is one of the simplest and most common used techniques. In this method, a weight value is assigned to each criterion, and the performance of alternatives is calculated based on these weights. This method is commonly applied in project management, product selection, and supplier evaluation like. Its advantage lies in its simplicity and ease of application. However, the success of the method largely depends on the accurate determination of criterion weights.

Analytic Hierarchy Process (AHP)

AHP is a technique that breaks down complex decision-making problems into a hierarchical structure to make them more manageable. In this process, criteria and sub-criteria are compared and assigned weights. This method is frequently used to solve complex problems such as investment decisions and strategic planning. Its advantage is the simplification of complex problems. However, errors may occur during comparisons, potentially affecting the accuracy of the results.

TOPSIS (Technique for Order Preference by Similarity to Ideal Solution)

TOPSIS is a technique that ranks alternatives based on their proximity to the ideal solution. This method is highly effective in areas such as performance evaluation and process optimization. Its computational processes are straightforward, offering ease of use, but the correct determination of weights is critical. Otherwise, the reliability of the results may decrease.

PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluation)

PROMETHEE enables the ranking of alternatives according to specific preferences. This method provides flexible solutions, particularly in environment management and engineering projects. While it offers advantages in flexibility and adaptability, the selection of preference functions requires expertise. Wrong preferences may negatively affect the accuracy of decisions.

ELECTRE (Elimination and Choice Translating Reality)

ELECTRE ranks and eliminates alternatives by analyzing dominance relationships among criteria. This method has the capacity to handle uncertainties and is particularly applied in areas such as public policy and supply supply chain management. However, its computational processes can be complex and computationally demanding, which may limit its practical applicability.

VIKOR (Vise Kriterijumska Optimizacija I Kompromisno Resenje)

VIKOR provides compromise solutions by balancing the distances of alternatives from the ideal solution. This method is used in areas such as project selection and strategic planning, enabling balanced decision making. However, one of its disadvantages is the sensitivity of weights to important. Incorrect determination of weights can negatively affect the accuracy of decisions.