Strategic Approach in Multi-Criteria Decision Making: A Practical Guide for Complex Scenarios (International Series in Operations Research & Management Science, 351)

Preface and Road Map
	Book Structure
Introduction
Prologue to this Second Edition
Contents
Part I: Theory and Analysis of MCDM Problems: History of MCDM and How It Is Performed
	Chapter 1: Multi-criteria Decision-Making, Evolution, and Characteristics
		1.1 History and Evolution of Multi-criteria Decision-Making Methods
			1.1.1 Some Background Information on Decision-Making
		1.2 Introduction to Most Common and Used Heuristic Methods
		1.3 The Decision-Making Paradox
		1.4 Which Is the Best MCDM Method?
		1.5 Considering and Modelling Reality
		1.6 Is It Possible to Represent Reality Faithfully?
		1.7 Conclusion of This Chapter
		References
	Chapter 2: The Initial Decision Matrix and Its Relation with Modelling a Scenario
		2.1 Basic Components of the Initial MCDM Decision Matrix
			2.1.1 Stakeholders
			2.1.2 Decision-Maker or Group of DMs
			2.1.3 Objective/s That the Scenario Must Attain
			2.1.4 Scenario/s
			2.1.5 Alternatives, Projects or Options
			2.1.6 Criteria
				2.1.6.1 Areas Included in Criteria
				2.1.6.2 Capacity of Criteria to Evaluate Alternatives
				2.1.6.3 Actions for Criteria
				2.1.6.4 Resources and Restrictions for Criteria
			2.1.7 Performance Values
			2.1.8 Decision Matrix
			2.1.9 Methods
		2.2 Routines to Perform with Data
			2.2.1 Normalization
		2.3 Rank Reversal
			2.3.1 Possible Causes for RR
			2.3.2 Brief Information on Rank Reversal in Different MCDM Methods
				2.3.2.1 Rank Reversal in AHP
				2.3.2.2 Rank Reversal in TOPSIS
				2.3.2.3 Rank Reversal in PROMETHEE
				2.3.2.4 Rank Reversal in ELECTRE
				2.3.2.5 Rank Reversal in SAW
		2.4 The Uncertain Best Solution
		2.5 Characteristics of Components of the Initial Decision Matrix
			2.5.1 The MCDM Process as a System
			2.5.2 Alternatives Relationships
			2.5.3 Alternatives Heavily Related: A Case-Selecting Proposals
			2.5.4 Including and Excluding Alternatives-Conditions by a Third Party
				2.5.4.1 Actual Cases
			2.5.5 Forced Alternatives-An Actual Case: Fulfillment of Previous Commitments
			2.5.6 Criteria Selection
			2.5.7 Resources-An Actual Case: Oil Refinery
			2.5.8 Criteria Range
			2.5.9 Annual Budget Restriction-An Actual Case: Five Yrs Development Plan
			2.5.10 Criteria Correlation
			2.5.11 Risk: A Fundamental Criterion
			2.5.12 Examining Differences in Results for the Same Problem Between Assumed Weights and Weights from Entropy: Case Study-Elec...
			2.5.13 Working with a Variety of Performance Values-An Actual Case: Environmental Indicators
			2.5.14 The ``Z´´ Method for Determining Some Performance Values for Qualitative Criteria
			2.5.15 The Z Matrix-CASE STUDY: Determining Risk Performance Values for Inputting in Risk Criteria
			2.5.16 Need to Work with Performance Values Derived from another Data Table
			2.5.17 Conditioning the Decision Matrix to Obtain a Specified Number of Results
		2.6 Additional Conditions Required for Methods
		2.7 Sensitivity Analysis
			2.7.1 The Two Types of Sensibility Analysis
			2.7.2 A Critical Analysis of the Way Sensitivity Analysis Is Performed Nowadays
		2.8 Conclusion of This Chapter
		References
Part II: Theory and Analysis of MCDM Problems: What Can Be Done by Using the MCDM Process?
	Chapter 3: How to Shape Multiple Scenarios
		3.1 Introduction
		3.2 Developing the Best Strategy: Case Study-Selecting Projects for Agribusiness Activities in Different Scenarios
		3.3 Solving the Problem
		3.4 Conclusion of This Chapter
		References
	Chapter 4: The Decision-Maker, a Vital Component of the Decision-Making Process
		4.1 Decision-Maker (DM) Functions-Interpretation of Reality
			4.1.1 First Level: Building the Initial Decision Matrix
			4.1.2 Second Level: Selecting a Method to Use
			4.1.3 Third Level: Following the Process
			4.1.4 Fourth Level: Examining the Result
			4.1.5 Synergy Between the DM and the Method
		4.2 Conclusion of This Chapter
		References
	Chapter 5: Design of a Decision-Making Method Reality-Wise: How Should it Be Done?
		5.1 Modelling
		5.2 Interpreting Reality
			5.2.1 Areas Where Reality Is Not in General Interpreted
				5.2.1.1 Scenarios
				5.2.1.2 Alternatives
				5.2.1.3 Criteria
				5.2.1.4 Performance Values
				5.2.1.5 Results Delivered by MCDM Methods
		5.3 Check List for Aspects to Be Normally Considered When Modelling
		5.4 Working Template for Modeling a Scenario in MCDM and for Selecting a Method to Solve it
		5.5 Conclusion of This Chapter
		References
Part III: Theory and Analysis of MCDM Problems: Proposes SIMUS as a Strategic Procedure to Tackle Real-World Scenarios
	Chapter 6: Linear Programming Fundamentals
		6.1 Basic Mathematical Background
		6.2 The Initial Decision Matrix (IDM)
		6.3 Solving the LP Problem Graphically: Case Study-Power Plant Based on Solar Radiation
		6.4 The Two Sides of a Coin
		6.5 Description of the Method
		6.6 Graphical Explanation of Correlation
		6.7 Is Rank Reversal Present in Linear Programming?
		6.8 Conclusion of This Chapter
		References
	Chapter 7: The SIMUS Method
		7.1 Background Information
		7.2 How SIMUS Works-Case Study: Power Plant Based on Solar Radiation
			7.2.1 Normalization by SIMUS
		7.3 SIMUS Application Example: Case Study-Power Plant Based on Solar Radiation
		7.4 Special Circumstances
			7.4.1 Ties in Scores
			7.4.2 Need to Use Formulae for Performance Factors
			7.4.3 Errors in the Decision Matrix
			7.4.4 Dealing with Non-linear Criteria
		7.5 Is SIMUS Affected by Rank Reversal?
		7.6 Testing SIMUS in Rank Reversal
			7.6.1 Case 1: Investment in Renewable Sources of Energy
			7.6.2 Case 2: Rehabilitation of Abandoned Urban Land
			7.6.3 Case 3: Determining Sustainable Indicators
		7.7 Solving Multi Scenarios Simultaneously
			7.7.1 Analysis of Global Solution-What to Produce and where?
			7.7.2 What Projects Go into Each Scenario
		7.8 Conclusion of this Chapter
		References
	Chapter 8: Sensitivity Analysis by SIMUS: The IOSA Procedure
		8.1 Background Information
			8.1.1 Example - Agroindustry for Export
		8.2 Data that the DM Must Input in IOSA
		8.3 DM Analysis
		8.4 Sequence for Sensitivity Analysis by SIMUS/IOSA
		8.5 Report to Stakeholders: Type of Concerns and Questions Expressed by the Stakeholders Relative to this Production Problem a...
		8.6 Conclusion of this Chapter
		References
	Chapter 9: Group Decision-Making Case Study: Highway Construction
		9.1 Background Information
		9.2 Construction of the Decision Matrix: A Case - Construction of a Highway in China
		9.3 Loading Data into SIMUS
		9.4 Step-by-Step Analysis
		9.5 Detailed Analysis by the Group
			9.5.1 First Objective (Minimize Construction Cost)
			9.5.2 Second Objective (Minimize Maintenance Cost)
			9.5.3 Third Objective (Minimize Delays in Transit)
			9.5.4 Four Objective (Maximize Safety)
			9.5.5 Fifth Objective (Maximize Lighting)
			9.5.6 Six Objectives (Minimizes Breaking Connectivity Between Areas Due to the Highway)
			9.5.7 Seventh Objective (Minimize Construction Time)
			9.5.8 Eighth Objective (Environmental Impacts)
			9.5.9 Ninth Objective (Minimize Traffic Noise)
		9.6 Conclusion of this Chapter
		References
	Chapter 10: SIMUS Applied to Quantify SWOT Strategies
		10.1 Background
		10.2 Procedure
		10.3 Application Example: Case Study-Strategy for Fabricating Electric Cars
		10.4 Construction of the Numerical SWOT Matrix
			10.4.1 Market and Government
		10.5 Preparing an Excel Matrix with Data
		10.6 Discussion
		10.7 Conclusion of This Chapter
		References
	Chapter 11: Analysis of Lack of Agreement Between MCDM Methods Related to the Solution of a Problem: Proposing a Methodology f...
		11.1 Objective of this Section
		11.2 Causes for Discrepancies on Results
		11.3 Subjective Preferences
			11.3.1 Subjective Weights
			11.3.2 Objective Weights
			11.3.3 Inconsistencies
			11.3.4 Evaluating Results
			11.3.5 The Proxy Approach
			11.3.6 Selecting a MCDM Method
			11.3.7 The DM Role
			11.3.8 What MCDM Method Can Be Chosen as a Proxy?
			11.3.9 Measuring Similitude Between Rankings
			11.3.10 Example as How Rankings Can Be Compared
		11.4 Conclusion of this Chapter
		References
Part IV: Practice of Problem Solving Using MCDM: Support for Practitioners
	Chapter 12: Support and Guidance to Practitioners by Simulation of Questions Formulated by Readers and Detailed Answers and Ex...
		12.1 Scenarios
		12.2 Sequence of the MCDM Process
		12.3 Criteria
		12.4 Resources and Limits for Criteria
		12.5 Performance Factors
		12.6 Normalization
		12.7 Group Decision Making
		12.8 Results
		12.9 SWOT
		12.10 Sensitivity Analysis (SA)
		12.11 Role of the Decision-Maker (DM)
	Chapter 13: Best Practices: Modelling and Sensitivity Analysis in MCDM
		13.1 The SIMUS Method
		13.2 Definitions
			13.2.1 Composite Indexes
			13.2.2 Macro Planning
			13.2.3 Strategies
			13.2.4 Alternatives
			13.2.5 Criteria
			13.2.6 Performance Values
			13.2.7 Attributes
			13.2.8 Results
			13.2.9 Weights
			13.2.10 Sensitivity Analysis
		13.3 Modelling and the Role of Stakeholders
		13.4 Areas Where SIMUS Has Been Used
		13.5 Comments and Advices in Black, Examples in Italics
		13.6 Recommendations to Practitioners
		13.7 Complex and Complicated Scenarios
			13.7.1 Background Information
			13.7.2 Aspects to Consider by the DM
				13.7.2.1 Data Acquisition
				13.7.2.2 Criteria Selection
				13.7.2.3 Weights
				13.7.2.4 Criteria Units
				13.7.2.5 Criteria Types
				13.7.2.6 Cardinal Data
				13.7.2.7 Selecting a Method
				13.7.2.8 Working with a Method
				13.7.2.9 Difficulties than May Be Encountered in Interpreting a Solution
				13.7.2.10 Role of Sensitivity Analysis
		13.8 Using SIMUS for Decision-Making
		13.9 Analyzing Variations in Criteria Limits (RHS)
		13.10 Analyzing Variations in Alternatives Scores
		13.11 Conclusion
		References
	Chapter 14: Some Complex and Uncommon Cases Solved by SIMUS
		14.1 Case Study: Simultaneous Multiple Contractors´ Selection for a Large Construction Project
			14.1.1 Background Information
			14.1.2 The Case: Construction of a Large Power Plant
			14.1.3 Conclusion of this Case
		14.2 Case Study: Quantitative Evaluation of Government Policies Regarding Penetration of Advanced Technologies
			14.2.1 Background Information
			14.2.2 Process Structure
			14.2.3 The Case
			14.2.4 Analysis of Different Policies
			14.2.5 Conclusion of This Case
		14.3 Case Study: Selecting Hydroelectric Projects in Central Asia
			14.3.1 Background Information
			14.3.2 Conclusion of This Case
		14.4 Case Study: Community Infrastructure Upgrading for Villages in Ghana
			14.4.1 Background Information
			14.4.2 Areas and Data
				14.4.2.1 Analysis
			14.4.3 Conclusion for This Case
		14.5 Case Study: Urban Development Study for the Extended Urban Zone of Guadalajara, According to Sustainability Indicators, M...
			14.5.1 Background Information
				14.5.1.1 Projects
				14.5.1.2 Criteria
				14.5.1.3 Project by Municipalities Considering
				14.5.1.4 Projects that Are Shared for more than One Municipality
				14.5.1.5 Maximum Amounts Available for Municipality Considering
				14.5.1.6 Result
			14.5.2 Conclusion of This Case
		14.6 Case Study: Selection of the Best Route Between an Airport and the City Downtown
			14.6.1 Background Information
			14.6.2 The Case
			14.6.3 Conclusion of This Case
		References
Appendix
	The Simplex Algorithm: Its Analysis-Progressive Partial Solutions
	Demonstration of Absence of Rank Reversal in SIMUS
		Solving a Problem with SIMUS Software
		Adding an Exact Copy of an Existing Project
		Adding Project 6 ``Worse´´ than Others
		Adding New Project x7 Keeping Project x6 and with x3 = x6 = x7
		Adding a New Project Identical to Other and Simultaneously Adding Another Considered the Best
		Deleting Project from the Original
		Summary of Scenarios and Results
Conclusion
Reference