# Multi-criteria decision making

MCDM

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Part 1.  Questions 1-5.

Consider the Decision between the Proposals based on the Criteria.

The criteria weights were predetermined by management.

The proposal measures for each criterion were obtained from the decision committee and based on a scale of 1 to 100 where higher is better.

 Criteria Weight Proposal A Proposal B Proposal C C1. Technical approach 40% 75 76 74 C2. Management approach 30% 50 40 30 C3. Past performance 20% 75 95 25 C4. Price 10% 20 20 10

. . .

Question 1.  Which proposal wins based on (biased) weighted scores? A  B  C

Question 2.  Which proposal wins based on unbiased weighted scores? A  B  C

Question 3.  Which proposal wins based on equally weighted scores? A  B  C

Question 4.  Which proposal will never win (dominated) regardless of the weights?

A  B  C  None of the above

Question 5.  Which criterion has no ability to discriminate between the alternatives

(after the dominated proposal is eliminated)?

A. C1     B. C2     C. C3     D. C4     E. None of the above

. . .

Part 2.  Questions 6-9.

Consider the Decision between the Proposals based on the Criteria.

 Criteria Weight Proposal A Proposal B Proposal C C1. Technical approach C2. Management approach C3. Past performance C4. Price

The criteria weights were determined by the judgments:

C1=2C3, C2=3C4, C3=2C4

C1=2C3=2(2C4)=4C4

C1=4C4=4(1/3C2)=4/3C2

C1=1, C2=3/4, C3=1/2, C4=1/4

The proposal measures for each criterion were determined by the judgments from the decision committee:

For C1,Technical approach: A=2.5B, A=2C         A=1, B=2/5, C=1/2

For C2,Management approach: A=0.5B, A=4C    A=1, B=2,  C=1/4

For C3,Past performance: A=0.8B, A=2.5C         A=1, B=1.25, C=2/5

For C4,Price: A=1B, A=1.6C                                A=1, B=1,  C=5/8

. . .

Question 6.  Which proposal wins based on unbiased weighted scores? A  B  C

Question 7.  Which proposal wins based on equally weighted scores? A  B  C

Question 8.  Which proposal will never win (dominated) regardless of the weights?

A  B  C  None of the above

Question 9.  Which criterion has no ability to discriminate between the alternatives

(after the dominated proposal is eliminated)?

A. C1     B. C2     C. C3     D. C4     E. None of the above

. . .

Part 3.  Question 10.

Consider the Decision between the Proposals based on the Criteria.

 Criteria Weight Proposal A Proposal B Proposal C C1. Technical approach C2. Management approach C3. Past performance C4. Price

The criteria weights were predetermined by management:

C1=40%, C2=30%, C3=20%, C4=10%.

The proposal measures for each criterion were determined by the different methods.

For the Criterion, C1: Technical approach, the committee judged each proposal on a scale of 1 to 100:

C1=94, C2=82, C3=87

For the Criterion, C2: Management approach, the committee judged each proposal by distributing points based on the weight.  Thus, 30 points were distributed to each proposal where the sum must be 30.

C1=10, C2=10, C3=10

For the Criterion, C3: Past Performance, the committee judged each proposal by ranking from 1 to three where 1 is best and 3 is worst.

C1=2, C2=3, C3=1

For the Criterion, C4: Price, the committee recorded the dollar price in thousands.

C1=\$25,  C2=\$30, C3=\$28

. . .

Question 10.  Which proposal wins based on unbiased weighted scores? A  B  C

. . .

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