{"title":"Ratio product model: A rank-preserving normalization-agnostic multi-criteria decision-making method","authors":"Majid Mohammadi, Jafar Rezaei","doi":"10.1002/mcda.1806","DOIUrl":null,"url":null,"abstract":"<p>This paper presents a new multi-criteria decision-making (MCDM) method, namely the ratio product model (RPM). We first overview two popular aggregating models: the weighted sum model (WSM) and the weighted product model (WPM). Then, we argue that the two models suffer from some fundamental issues mainly due to ignoring the ratio nature of the alternatives' scores with respect to the criteria and the importance weights of the criteria. Building on the notion of compositional data analysis, the developed RPM regards performance scores and criteria weights as compositions, which solves the issues around the WSM and WPM. Using several examples, we show that the WSM and WPM could lead to erroneous conclusions, whereas the RPM could lead to fully reliable conclusions. Since many MCDM methods rely on some aggregation approaches, the proposed method is a significant contribution to the field and puts forward the correct way to analyze decision problems while respecting the nature and constraints of the input data.</p>","PeriodicalId":45876,"journal":{"name":"Journal of Multi-Criteria Decision Analysis","volume":"30 5-6","pages":"163-172"},"PeriodicalIF":1.9000,"publicationDate":"2023-03-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Multi-Criteria Decision Analysis","FirstCategoryId":"1085","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/mcda.1806","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"MANAGEMENT","Score":null,"Total":0}
引用次数: 0
Abstract
This paper presents a new multi-criteria decision-making (MCDM) method, namely the ratio product model (RPM). We first overview two popular aggregating models: the weighted sum model (WSM) and the weighted product model (WPM). Then, we argue that the two models suffer from some fundamental issues mainly due to ignoring the ratio nature of the alternatives' scores with respect to the criteria and the importance weights of the criteria. Building on the notion of compositional data analysis, the developed RPM regards performance scores and criteria weights as compositions, which solves the issues around the WSM and WPM. Using several examples, we show that the WSM and WPM could lead to erroneous conclusions, whereas the RPM could lead to fully reliable conclusions. Since many MCDM methods rely on some aggregation approaches, the proposed method is a significant contribution to the field and puts forward the correct way to analyze decision problems while respecting the nature and constraints of the input data.
期刊介绍:
The Journal of Multi-Criteria Decision Analysis was launched in 1992, and from the outset has aimed to be the repository of choice for papers covering all aspects of MCDA/MCDM. The journal provides an international forum for the presentation and discussion of all aspects of research, application and evaluation of multi-criteria decision analysis, and publishes material from a variety of disciplines and all schools of thought. Papers addressing mathematical, theoretical, and behavioural aspects are welcome, as are case studies, applications and evaluation of techniques and methodologies.