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Available online at http://pubs.sciepub.com/ajis/1/1/5
© Science and Education Publishing
DOI:10.12691/ajis-1-1-5
2
Department of Computer Science, Research and Development Centre, Bharathiyar University, Coimbatore, India
*Corresponding author: jayamartin@yahoo.com, cudmartin@gmail.com
Received January 08, 2013; Revised July 15, 2013; Accepted December 15, 2013
Abstract Multi Criteria Decision Making (MCDM) provides strong decision making in domains where
selection of best alternative is highly complex. This survey paper reviews the main streams of consideration in
multi criteria decision making theory and practice in detail. The main purpose is to identify various applications
and the approaches, and to suggest approaches which are most robustly and effectively useable to identify best
alternative. This survey work also addresses the problem in fuzzy multi criteria decision making techniques.
Multi criteria decision making have been applied in many domains. MCDM method helps to choose the best
alternatives where many criteria have come into existence, the best one can be obtained by analyzing the different
scope for the criteria, weights for the criteria and the choose the optimum ones using any multi criteria decision
making techniques. This survey provides the comprehensive developments of various methods of FMCDM and
its applications.
Keywords: multi criteria decision making, fuzzy, MCDM, TOPSIS, best choice, decision making
Cite This Article: Martin Aruldoss, T. Miranda Lakshmi, and V. Prasanna Venkatesan, “A Survey on Multi
Criteria Decision Making Methods and Its Applications.” American Journal of Information Systems 1, no. 1
32 American Journal of Information Systems
2.1. Methods of MCDM alternative. The Figure 1 depicts the hierarchical view of
MCDM methods have been applied to different MCDM methods and its types. The widely used MCDM
applications and find the best solution to choose the best methods have been described in following headings.
A fuzzy 1.Saudi 1.unit price and payment terms For the selection of cans 1.Modified SAPIN
multicriteria Arabian for 2.delivery terms supplier/Suppliers at fuzzy
decision making Packaging 3.supplier factory capacity 4.shipping Nitrides Factory in DEMATEL
model for supplier Industry method Amman-Jordan to model, 2.A
selection (SAPIN), 5.lead time 6.location of can supplier demonstrate the proposed modified
[12] 2.Arabian Can 7.technical specifications model. TOPSIS model
Industry 8.Services and communications with the
(ACI), supplier
3. ZA 9.compensationfor waste
Turkish 10,major customers with the same
Supplier business 11.certificate of
4. Al- Supplier
Watonga for
Containers
Manufacturing
38 American Journal of Information Systems
(CMC)
1.Cost-control
Examine the use 3 2.Detailed information about the
and application of DIFFERENT crewmembers and their behavior To enhance safety by
1.TOPSIS
MCDM COMPNANY 3.availability of presenting data per ship mitigating risks and
2.ELECTRE C2
techniques in 1.C1 4.comparsion with industry increasing the reliability
3.AHP
safety assessment 2.C2 5. Planning, preview and scenarios of risk of a system.
[29] 3.C3 management.
1.Professional
manpower on
industrial &
semi-
industrial scale
2.Professional
manpower on
laboratory
scale 1. Power density
Mathematical 3.Know-how 2. Efficiency system of fuel cells
analysis of fuel on industrial & 3. Fuel type (Including the effect
cell strategic semi- on fuel cells operation, The analysis of fuel cell
industrial scale Professional
technologies process stages, availability, cost, safety strategic technology in
4.Know-how TOPSIS manpower on
development and environment considerations) the automotive industry
on laboratory laboratory scale
solutions in the 4. Life time and preserving fuel using TOPSIS
automotive scale cells 5. Operational heat, start-up period,
industry [17] 5.Hardware on reaction period and response of fuel cells
industrial & 6. Security and confidence
semi-
industrial
scale
6.Hardware on
laboratory
scale
*[12] - Unit price and payment terms (C1), delivery terms (C2), supplier factory capacity (C3), shipping method (C4), lead time (C5), location of can
supplier (C6), technical specifications (C7), certifications (Regular and International) (C8), services and communications with the supplier (C9),
compensation for waste (C10), printing complies to design and color (C11), easy open and spoon leveling (C12), testing methods for packaging
materials and available tests from supplier (C13), variation of dimensions (C14), stretch wrapping and clean separators, pallet size and height (C15),
major customers with the same business (C16), certificate of supplier materials (C17), SAPIN - Saudi Arabian Packaging Industry, ACI - Arabian Can
Industry, CMC - Containers Manufacturing.
*[14] - Incident information management framework consists of three major components. The first component is a high-level data integration module in
which heterogeneous data sources are integrated and presented in a uniform format. The second component is a data mining module that uses data
mining methods to identify useful patterns and presents a process to provide differentiated services for pre-incident and post-incident information
management. The third component is a multi-criteria decision-making (MCDM) module that utilizes MCDM methods to assess the current situation,
find the satisfactory solutions, and take appropriate responses in a timely manner
*[15] -Sub criteria: Economic: Capital cost, Operating cost, Environmental: Solid residuals and environmental impacts, Water residuals and
environmental impacts, Air residuals and environmental impacts, Release with health effects. Technical: Reliability, Volume reduction, Need for skilled
operators, Occupational hazards occurrence impact, Treatment effectiveness, Level of automation, Occupational hazards occurrence frequency. Social:
Adaptability to environmental policy, Land requirement, Public acceptance obstacles
40 American Journal of Information Systems
Table 2 describes some the application of Fuzzy detect variance and extract useful knowledge. Different
MCDM in various disciplines. In some applications services to satisfy the requirements of different incident
uncertainty in decision making arises, so fuzzy multi management phases. Multi-criteria decision-making assess
criteria decision making is chosen to solve this issue. The the current situation, finds the satisfactory solutions, and
criteria used in urban distribution centers such as security, takes appropriate responses in a timely manner [14].To
accessibility, cost, and environment [9]. The sensitivity compare the performance of different MCDM methods
analysis is performed to determine the influence of criteria such as AHP, TOPSIS, ELECTRE (I, II, IS, III, IV and
and weights on location planning is applied to find the A), Grey theory a case study on warehouse selection have
suitable locations. The selection of location for placing the been selected and different characteristic of each method
Application Alternatives Criteria Problem Techniques Best alternative
Three banks To rank the The three MCDM
banking analytical tools of
Banking 1. Finance
1.C Bank, performance and 1. SAW,
performance based 2. Customer
improve the gaps ‘‘U Bank”
on Balanced 3.Internal Process
Scorecard.[18] 2.S Bank, and with three banks as 2. TOPSIS,
4. Learning and Growth
an empirical
3.U Bank example. 3. VIKOR
Financial criteria:
1. Asset quality
The largest five 2. Capital
Fuzzy commercial banks of adequacy To maintain the
performance
Turkish Banking 3. Liquidity
evaluation in performance of the 1.Fuzzy sets and Customer satisfaction and
Turkish Banking sector are examined 4. Profitability
banking system fuzzy numbers Service quality have been
Sector using and these banks are 5. Income and
since the economy 2.FAHP evaluated for commercial
Analytic Hierarchy evaluated in terms expenditure
is changing 3.TOPSIS banks.
of several financial Non Financial criteria:
Process and rapidly.
and non-financial 1.Pricing
TOPSIS.[19]
indicators 2.Marketing
3.Productivity
4.Delivery services
1. Human New information
resource readiness technologies and
The impact of 3D e- 2. Top emerging business
1. organizational
readiness on management forces have
ereadiness 2.
ebanking readiness triggered a new Top management readiness
industry e- Fuzzy AHP
development in 3. Strategy and strategy readiness
3. macro environmental wave of financial
Iran: A fuzzy AHP readiness 4.
e-readiness innovation–
Analysis. [30] Structure readiness
5. Technology electronic banking
readiness (e-banking).
watershed which is using the new method FSROWA is is discussed [6].
introduced to combine the Fuzzy and Stochastic features AHP method is used in the analysis of the health -
into a revised OWA operator, for choosing the effective safety and environmental risk assessment of refineries for
place for the location of the water shed [10]. To search the the location of the power plant, the risk factor such as
best place for urban Centre distribution all the places are health-safety risk, technology risk, etc., have been
ranked based on criteria. considered [16]. To select best strategic technology for the
The co-evolutionary immune algorithm for the fuel cell in the automotive industry TOPSIS have been
multicriteria decision making (MCDM) model, is used for applied [17].
the model to solve the large scale garment matching From all these works, different methods have been used
problem. Size fitting problem is a main obstacle to large for different applications where each of the method has its
scale garment sales and online sales because it is difficult own characteristics in finding the best alternatives. The
to find the fit garments by the general size information. applications which are developed to solve multi choice
This study regards the fit garment matching problem as a problems and FMCDS methods which are chosen provides
MCDM model with the constraints of size satisfaction. An better performance in cases such as supplier chain
immune co-evolutionary algorithm is used to search the fit management in business applications, safety assessment in
garments from the candidate garments in the stock [33]. marine engineering, watershed location and urban
Health-care waste (HCW) management is a high priority distribution centers in public sectors.
environmental, public and health concern in developing 2.2.2. FMCDM in Banking
countries. The management and treatment of HCW are To process the mortgage or loan applications banks
gaining more attention with the rising awareness. The have a fixed set of criteria. After going through the criteria
proposed decision approaches enable the decision-makers the decisions are made rigidly by the bank officers. This
to use linguistic terms, and thus, reduce their cognitive process can be made easier and more efficient using fuzzy
burden in the evaluation process. By using MCDM, the logic. Nowadays, banks are increasingly turning to
evaluation of multi-level hierarchical structure and fuzzy intelligent banking solutions like artificial intelligence to
logic for HCW treatment can be obtained [15]. screen out many loan applications to make the final
An effective incident information management system recommendation and approval. Banks can save valuable
deals with several challenges. Decision makers have to man-hours and dedicate the resources to other productive
one by means of using these approaches. Therefore, it operating cost for the bank. Table 3 describes some of the
improves the bank processes efficiency and lowers the bank applications which describe FMCDS.
42 American Journal of Information Systems
Table 3 describes the various applications of Fuzzy method the performance of a teacher has been computed.
MCDM in banking sector. However, intelligent banking This method is adapted to utilize numerical scores in the
systems has seen its usefulness enhanced with form of interval marking. Common methodologies
breakthroughs in technology such as fuzzy logic, there is reported in past research can handle quantitative
still a need of human interpretation that must be used in numerical score. These methods cannot consider interval
dealing with sensitive transactions. It is a still a long way making assigned to a particular item whereas COPRAS-G
before intelligent banking system can do away with method overcomes this drawback [24].
human interaction at all levels. Fuzzy logic allows a In Evaluation of training performance of administrative
computer to reach a decision based on a myriad of factors instructors fuzzy set theory is applied to measurement the
with different levels of importance [21]. Rather than a yes
or no answer, fuzzy logic application reaches a decision
based on the weight given to the factors. The artificial
intelligence in the application will compare all the
potential results both positive and negative before coming
to a final conclusion. Fuzzy logic applications using
artificial intelligence often make use of neural networks to
process the task.
Banking is the sector where fuzzy may occur many
times, to overcome this fuzzy MCDM is applied. The
fuzzy multi criteria decision making is very much useful
in banking application and the performance evaluation of
banks has important results for creditors, investors and
stakeholder’s since it determines banks’ capabilities to
compete in the sector and has a critical importance for the
development of the sector [19].
The threat for E-Banking is identifying any phishing
websites in real-time is really a complex and dynamic
problem involving many factors and criteria [22]. The
banking and financial industry is transforming itself in
unpredictable ways powered in an important way by
advances in information technology. Methods like
TOPSIS, AHP, FAHP, FBCC and FSBM have been
applied in e-banking.
In credit limit allocation model for banks all the criteria
have been identified and each criteria assign weight by the
experts group, and then criteria have been grouped in
region wise [23]. The FUZZY TOPSIS method is used to
evaluate the criteria in each region and then all the criteria
have been ranked. Liner programming assigns credit risk
concentration limits to the regional heads such that the
total value of capital from all location (TVCA) becomes
maximum.
The studied works gives an overview of applications of
FMCDM where the different methods have been applied
and used. Fuzzy is a technique which is widely used
where uncertainty occurs, where the judgment of the
result is not clear and optimal, the fuzzy weights have
been assigned to each criterion and they have been
evaluated. In banking sector FMCDM is used to overcome
the uncertainty which was the drawback of the system. It
is also being used in E- Banking where users often tend to
have problem or dilemma in selecting the links where
there is a threat of hacking the passwords through spam
mails and hence fuzzy have been applied to identify the
phishing web sites and links. The below sections explains
about the performance evaluation of MCDM applications.
The performance evaluation is used to measure the 3.1 MCDM is the Powerful Technique for
performance of the employee in the organization. Decision Making
Evaluations are utilized to determine whether the
employee meets the certain criteria and to recommend The MCDM is used in many application such as
appropriate follow-up actions. During the evaluation of performance evaluation, warehouse location, supplier
performance uncertainty occurs, so MCDM approach is selection, supply chain management, Assessment of
applied to measure the performance issues. In Teachers health-care waste treatment, Banking performance,
performance evolution many alternatives and criteria are ebanking, teachers’ performance and in various multi
applied to analyze the performance of teachers and best choice selection process. The decision making in all these
teacher is identified using COPRAS-G. In the same way to application is efficient and best alternative have been
analyze the training administrative instructor’s found. Table 5 describes about various applications of
performance various criteria such as the knowledge level, MCDM techniques.
problem solving skills and cognitive abilities have been The performance of the MCDM is very high in the
considered [4]. business organization which is used to solve the
Consumer demands for electrical energy are complexity of the problem. MCDM is used in all real
increasingly growing, because this energy is present in all world application such as warehouse location,
the fields of human activity. The alternatives are technical environment assessment. The performance of the
and the organizational measures often taken in planning organization is developed by better solution which can be
and operation phases of electrical power systems is to obtained by MCDM. In the business, the collections of
investigate appropriate tools (multi-criteria decision relevant information have been done, to provide the better
making methods) aiding decision makers to achieve the solution for the problem. The relevant information is very
goals like customer satisfaction and profit making [26]. useful in the making the decision in the complex problem
Multi-criteria decision-making method based on which occurs in the organization. The methods of MCDM
intervalvalued intuitionist fuzzy sets which is used for are unique in there characteristic, which can be used in the
determining the best company(a car company, a food certain problem that suits there characteristic. For
company, a computer company, an arms company) to example, the TOPSIS method, that has chosen the best
invest the money to obtain more profit [16]. alternative based on a maximization of the distance from
the negative ideal point and minimization of the distance
3. Findings of Survey from the
Multi criteria decision making and its applications have positive ideal point. Grey theory methods, examines the
been discussed in this survey. The multi criteria decision interactional analysis when the decision-making process is
making is one of the powerful tool for obtaining the best not clear, there are a great number of input data and it is
choice for a complex decision making situations using discrete and insufficient data.
MCDM Applications
Table 6 describes the analysis report of the multi criteria 3.3. Comparison of AHP and Fuzzy AHP
techniques which is widely used in various applications. Analytic hierarchy process AHP is a method used for
Table 6, also describes the clear essence of the domains in ranking purpose in selecting the best one when the
which MCDM is applied. Most of the multi criteria based decision maker has multiple criteria. This method helps the
problems fuzzy MCDM approach is applied due to its decision makers to select a better alternative from all by
capability of solving uncertainty issues and it gives the satisfying the minimal score to rank each decision
best determination for the decision makers, so that MCDM alternative based on how well each alternative meets them.
method is used in many domains. Each MCDM method is Fuzzy AHP, where it helps the human to make quantitative
chosen according to difficulty of the problem. Table 7 predictions as they are not well versed, but they are equally
describes about most widely applied methods in multi better in making quantitative forecasting. The uncertainty
criteria decision making and these methods are ranked occurs during the judgments where in turn in consistency
based on its applicability and usage in various domains. arises in between the alternatives.
Table 7. MCDM Methods and its usage
S. No MCDM Methods Contributions Fuzzy pair wise comparisons states that there are many
1 FMCDM 5 criteria’s but if any criteria has a less important among all
2 TOPSIS 9 then it can be weighed as zero unlike other methods.
3 FAHP 6 Though that criterion is handled for the decision making
4 VIKOR 2 process, if it has no importance when compared to all
5 ELECTRE 5 others. In the classic AHP method, deterministic values
6 Others 3
and operations do not permits such a situation “having zero
A graph is plotted to indicate the usage of MCDM weighed”, but if a criterion is evaluated as less than all of
methods in the various applications in the survey work.
the others, then the numerical weight of the criteria will be
Most widely applied methods in decision making problem near to zero. Fuzzy AHP can merely ignore the criteria that
such as TOPSIS, ELECTRE, FAHP, FMCDM, VIKOR
have less importance whereas the classic AHP where it
and there are others methods such fuzzy DEMATEL, From
FSROWA, Fuzzy BCC, Fuzzy SBM etc have been applied in few works.
the Figure 2 it known that TOPSIS method is applied will be given with so weight. This can also be an
mostly in many applications. The next is FMCDM method advantage for fuzzy-AHP presenting additional
that has been used in the fuzzy application for solving the information for decision maker that there is no difference
uncertainty. A Fuzzy MCDM is an approach for evaluating between the existence and nonexistence of such a criterion.
decision alternatives involving subjective judgments made Therefore, the decision maker can focus on more important
by a group of decision makers. A pairwise comparison criteria.
process is used to help individual decision makers to make Classical and fuzzy methods are not the rivals with each
comparative judgments, and a linguistic rating method is other at same conditions. The important point is that if the
used for making absolute judgments. The other methods information / evaluations are certain, classical method
are Fuzzy BCC, Fuzzy SBM, FSROWA and COPRAS-G. should be chosen; if the information / evaluations are not
This survey outlines research opportunities in MCDM, the certain, fuzzy method should be chosen. In recent years,
features of MCMD can be applied to any domain when because of the uniqueness of information and decision
multiple choices are available for decision making. The makers, probable deviation should be integrated to the
next sub section discuss the difference between fuzzy AHP decision making processes, and because of that for each
methods, decision making method, a fuzzy version is developed.
Fuzzy AHP method is a natural result of this necessity.
46 American Journal of Information Systems
∑ Ai2j
i=1 Dkl = max Vkj −Vij { } j∈Dkl Concordance threshold
Step 1: The data set are created based on the criteria C0 3.4.2. Number of Outranking Relationship and its Type
={C C1 2 3, ,C ,} Many number of pair wise comparison matrix exist
which leads to a disadvantage of AHP and the opportunity
Step 2: Ci ={Ci1,Ci2,Ci3,} comparison data is of carrying out the methodology is prevented when the
determined which shows the performance values of each number of alternative and criteria are huge. ELECTRE I
alternatives against the criteria, where i=1,2,3..k, where k and TOPSIS methodologies needless input is compared
defines the alternative number. with AHP and the necessity of pairwise comparison is
The maximum performance indicator of the criteria is eliminated.
calculated as follows,
3.4.3. The Consistency Control
One of the most important advantages of AHP is the
Vi(l) = maxViV(li)(−l)min− minViV(li)(l) (7) limitation of consistency. In methods like TOPSIS,
ELECTRE I and ELECTRE II the consistency is not
controlled. Furthermore, since it is necessary to make
The minimum performance indicator of the criteria is pairwise comparisons in all the levels of hierarchy, as the
calculated. number of alternatives and criteria gets increased, it gets
harder to perform AHP for more complex problems. On
the other hand, AHP can be easily performed without
Vi(l) = (8) regarding the applied data evaluation of alternatives based
The optimum value performance indicator of the on criteria either is qualitative or quantitative. Based on its
criteria is calculated simplicity in perception and its usage TOPSIS method gets
attention. For a problem with huge number of alternatives
and criteria’s, TOPSIS and ELECTRE methods can be
performed easily.
V i(l) = −1maxVVi(li)(−l)iU−Ui (9)
information to be delivered to them, so in banking the evaluation suppliers in supply chain management”, African Journal
of Mathematics and Computer Science Research Vol. 4 (3),
various needs of the users can be obtained by having many
pp.100-106.
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This survey finds opportunities in multi criteria decision
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