Introduction
In todays world, real decision-making has been known to be faced by a number of problems that tend to be complex, ill-structured and sometimes unrealistic (Figueira, 2004, p. 16). It would therefore be necessary for any given individual willing to come up with a necessary decision to come up with a framework which would enable him the examine the criterions, the attribute, or the point of view on which the decision is to be arrived at. This way it would be possible to come up with some kind of workable decision. In fact, any given uni-dimensional model or approach will be merely a simplification of the existing nature of any problem being faced at that given moment. Once such a decision has not made correctly, the chances are very high that it may end up resulting in misleading decisions by the end of the day. Therefore, any appealing model of approach would need to address all the pertinent factors related to the existing issues at hand (Figueira, 2004, p. 18).
However, with this kind of model approach, there are a number of issues that may tend to emerge. Some of these issues are how will several conflicting factors be aggregated to come up with one evaluating model, what will be the uniqueness of the model Because of the existence of such issues, a given number of researchers within a number of business disciplines have been keen to come up with addresses and solutions which can provide man with better ways of decision making (Keeney, 2003, p. 23). This has therefore been the reason behind the realisation of statistical approaches, the application of human problem-solving intelligence techniques, and the use of research methodologies (Keeney, 2003, p. 26). Obviously, any model designed with the sole purpose of helping in any kinds of decisions making will be highly appreciated and acknowledged by all those people wiling to make a vital decision. This has therefore ensured that all decision-makers consider all such issues whenever they are to develop any good decision-making structure or model (Keeney, 2003, p. 29).
Nature and Application of MCDA
We have been having more and more complexities occurring in todays real-world problems and decision-making. This is so because there have been the occurrence such plethora in the factors, nature and the criteria through which final decisions can be arrived at. This brings a number of factors which should be involved in necessitating any successful implementation of a given theoretical framework in decision making (Figueira, 2004, p. 62). This brings about the Multi-Critical Decision Analysis, MCDA structure as the best model or framework for solving such worries. MCDA is therefore known to provide an individual with the necessary mechanisms or framework to successful decision making. This will also provide a complete variety of sophisticated tools which give a methodological approach to a given problem. Such a framework will be useful once oriented into supporting the decision making, thereby being able to face and handle all the emerging trends in real- decision making techniques. Looking at the MCDA, it is a reputable decision-support method orientated through the combination of all the problems faced by an individual or organisation, and coming up with realistic and advanced modeling techniques for solving problems and decision-making (Keeney, 2003, p. 32).
Looking at the Decision Analysis Technique, its major distinguishing thing is that it does not rely much on theoretical or statistical assumptions. As more and more people require decision-operations which are useful and worthwhile, the application of MCDA continues to grow enormously. This advancement has therefore become the foundation aspects for appropriate MCDA which gives an interface for the existing behavioral theories of decision making and the current prescriptive practice aimed in solving any existing problem (Keeney, 2003, p. 41). The framework has therefore been providing major assumptions, methods, and even methodological models and aspects which involve the continual development of effective decision-making strategies. Over the last three years, global researchers have been trying to explore the application of MCDA framework in other fields such as human intelligence, algorithms, network connections, and even in fuzzy sets. Once such diverse natures of MCDA will be integrated, there will be an increase in the potentialities in coming up with advanced decision-making support tools (Pardalos, 2006, p. 32). This would be useful in solving the existing complexity within real-world problems, hence the need for better decisions.
Application of MCDA in Purchasing a Family Car
In purchasing a family car, there are a number of issues that have to be addressed before the final decision can be arrived at. This is so because there have been a number of issues that have to be solved. This would therefore call for the application of a good decision-making model, and that way it will be easy to come up with a solution which would lead a person in buying the best car. The car which is arrived at should be able to address some issues such as the cost of the car, petrol or fuel consumption, the ability to safe-guard the environment, the durability aspect of the car, and finally, the ability of the car to provide the necessary comfort to the people within the family.
Having such a challenge, any expert will have to realise that there can ever be a better way to go about this problem, but by adopting Multi-Criteria Analysis model. This is because there are about six different cars that seem to provide all the above qualities. Although that is the case, all the six cars may not have similar achievements and capabilities in addressing all the above issues. This means that it will be inevitable to use a model that will guide us in arriving at our necessary decision. Once a final decision has been arrived, it would be easy to compare such cars and purchase one car which provides with it the best deal here.
In order to come up with the best model here, it would be necessary to look at the key steps and procedures through which we shall set our priorities right. Using the MCDA technique, we will first be required to get the list of our major options, then derive them in a table with rows and columns. Our items from which we will have our final selection would be aligned within the rows of our already created table. There are a number of factors which we will be supposed to put into consideration within our Multi-Criteria Analysis Model. These factors of considerations will hence have to be put on the columns. The major factors of considerations here will include comfort of the car, petrol issues, environmental impacts, and the cost of the car among others (Zopounidis, 2002, p. 31).
Once this has been replicated in our table, the next important thing is to score each of the option-to-factor combination, then carry out the weight of each given score, then sum all the scores. This will give the overall scores with each given option. With our already created table, the initial step would be to come up with the necessary list of the six cars which are being compared by the willing buyer. This is then followed by the necessary factors of considerations in the purchase of the car. Having done that, we will have to come up with the relative advantages or importances within the factors of the already promising decisions. This will be shown in numbers 0 to 5. The use of a 0 will mean that the given factor will be absolutely unnecessary when it comes to the final conclusion or decision. With 5, the indication is that the decision will be extremely significant and very important (Figueira, 2004, p. 71). This is a clear indication that the decision is perfectly applicable and acceptable as compared with the others. With our desire to buy a comfortable five-seat family car, we will be required to use these details in weighting out our existing preferences, and this will be dependent on each and every factors importance. Another important thing to consider is that the values may tend to be obvious, and if they are not, it would be necessary to apply the Paired Comparison Analysis technique in their estimation (Pardalos, 2006, p. 38).
After that has been done, the next step requires one to work his way down the already created columns in the table. This will be done by scoring for each and every option or factor as given on the column top (Pardalos, 2006, p. 41). Such a procedure tends to be vital for coming up with the final decision with MCDA. During this procedure, it is required to score for all the existing options, and this is done from 0, meaning poor, to 5, meaning very good. During this process, there should be no different scoring for the already stated factors or options. This is to say that there should be different score s within the options. If it happens that there is none of the elements that are good within a given factor for the decision-making, then it is required that such options are scored 0 (Pardalos, 2006, p. 44). After that has been successfully done, the next thing will be multiplying each of the scores. This is done from the step number 3, by all the values with relative importance. This will be useful in giving the weighted scores in all the combinations of option and factor. Finally, all the weighted scores are added up within the options. This means that the option having the highest score will win, hence giving the final decision (Pardalos, 2006, p. 61).
Looking at our scenario here, we need a family car which would be cheap, elegant, comfortable, less fuel consumption, and durable. This car will not just be purchases without giving an analysis which would be useful in making a concrete decision. This will therefore require the application of a Multi-Criteria Decision Analysis Model so that the best decision may be arrived at. With many options in the market, it would be necessary that such an analysis is carried out so that the best car is purchased which provides all the already stated requirements. For instance, most of the available cars have been designed for the family comfort. In order to achieve this, it would be necessary to have some knowledge of the available cars and how they can be able to meet the above requirements. Having that in mind, it would be easy to come up with the necessary options. The options will be
Volks-Wagon
Camry
Mercedes Benz
BMW-Family car
A station wagonPeugeot
Nissan.
Criteria that he wants to consider are
Cost.
PetrolFuel Consumption
Comfort and Fun over long distances.
Environmental impacts
Look and build quality to car.
Once we have come up with such factors and factors, the next will be to draw up a table as shown in the Figure 1 below, then the scores for each option will have to be entered depending on the satisfaction for each factor.
Figure 1 Grid Showing Unweighted Assessment of the Satisfaction of each Car on Each Factor
FactorsCostPetrolComfortEnvironmentQualityWeightsVolks-Wagon10013Camry32221Mercedes Benz12332Peugeot 13330Nissan20011
Once the above has been done, the next thing is to decide on the relative weights within each of the stated factors. What we so here is to multiply these with the scores that have been entered, then get the summation. This leads us to Figure 2.
Figure 2 Analysis Showing Weighted Assessment and How Each Car Satisfies the Factors
FactorsCostPetrolComfortEnvironmentQualityTotalWeights54312Volks-Wagon5001612Camry15862233Mercedes Benz5893633Peugeot 51293027Nissan10001112
Our final decision here will be the Mercedes Benz or the Camry. This gives a very interesting result Despite the cost, the Mercedes Benz becomes a right choice, or a Camry. This will therefore ensure that the family would be able to buy such a car. Sometimes it may occur that the customer may still realise that his woes has not been solved by this Decision Analysis Model. It can be because at some given point he or she has underestimated the major importance or impacts in one of the already stated factors. This means that the person will have to fore-go the other cars and stick with the Mercedes Benz or the Camry. Once two conflicting decisions have been arrived at, the person may be required to choose any, or carry out the model again, or even come up with considerations on the two choices and see the one he will be comfortable with (Figueira, 2004, p. 66).
Evaluation of the Model
The Analysis model has proved to be very helpful when one has to decide within a number of options and factors. This is necessary since the person will be able to come up with necessarily decisions. This means that all the major problems facing all decision-making procedures. This helps one come up with necessary several options since it is easy to come up with a final solution. This will also take a number of factors into consideration (Roy, 2006, p. 47). In evaluating our model, we see that we have been successful in coming up with the necessary solution which would lead us in the final decision in the purchase of the car. This brings us to the conclusion that a Mercedes Benz and a Camry would both provide the family with all the requirements it needs (Zopounidis, 2002, p. 37).
This therefore means that this model can be used even in different organisations for coming up with necessary decisions. Basically, in coming up with such a design, we will be required to use this model as a tool, and this encompasses laying out the already stated options within the rows of a table. The factors are then set within the columns of the table (Vincke, 2002, p 39). After that, one will be supposed to set up all the columns in showing the factors being considered. Then, the next important thing is to allocate the weights so as to show the major importance and significance of all the already stated factors. After that, the scores for every choice and factor are done using digits 0, for poor, to 5, for good. Any other given student will therefore be required to apply the above methods and guidelines so that he can be able to come up with the necessary decisions concerning the car that he may purchase (Roy, 2006, p. 49).
It has hence been noted that such a Grid Analysis would be a very important tool when it comes to decision making. Also, the use of sophisticated MCDA models has been known to involve the use of highly complex digital modeling structures with different potentialities and a given number of scenarios. This would hence require the use of advanced mathematical softwares and statistical analysis (Figueira, 2004, p. 78). It will therefore be agreed that our evaluation was a success because we were able to come up with a final decision concerning the appropriate which we could buy and meet all our expectations.
Looking at it the international measurements and frameworks in decision making, we will agree that there are very many ways through which we can successfully apply MCDAs in coming up with vital decisions which would eventually result in major economical advancements and developments (Vincke, 2002, p 48). The literature for management operation and research in science has been showing that the world is today experiencing an increasing rates in the real-world problems, and hence increasing the applications of MCDA and similar operations in coming up with necessary decisions. Of course, it would therefore be necessary to mention some of the major sectors of the economy that have been known to apply MCDA models in making concrete decisions which would help in improving business operations. Looking at the field of economics and finance, MCDAs have been used in predicting any form of business loopholes and failure. There is also looking at credit transfers and risks managements. Other sectors in finance include financial planning, policy specification, company acquisitions and mergers, and portfolio management and selections (Vincke, 2002, p 62). Other fields applying this model are agriculture, commerce and trade industries, and even educational institutions such as colleges and universities.
As more issues continue to occur in todays real-world, it has been necessary that people come up with ways of solving problems and making decisions. This is so because there have been the occurrence of changing factors in nature and the criterion through which a final decision have to be arrived at. This therefore brings a number of factors which have to be involved in necessitating any successful implementation of a theoretical framework for decision-making operations (Zopounidis, 2002, p. 45). This makes MCDA the necessary structure and the best model for solving these existing worries. MCDA will hence provide any individual or organisation with necessary mechanisms for successful decision making. This will also provide a variety sophisticated tools which give a methodological approach to already stated factors and options (Zopounidis, 2002, p. 48). Such a framework will therefore be useful as a model for supporting decision-making, and also being able to face and handle all the emerging trends in real- decision making techniques. Looking at the MCDA, it is hence a reputable decision-support tool orientated within combination of theoretical analysis and applications in problem-solving and decisions-making.
Looking at the final result after the application of Multi-Criteria Decision Analysis, we have noted that it is a comprehensive, yet useful alternative for solving any major problem, a situation and drawing the possible preferences or values which would result in taking better options. This decision making process has been of great making since it provides the framework into the realization of homeland decisions, which are justifiable, economical, transparent and worthwhile (Zopounidis, 2002, p. 63). As a conclusion, we will note that MCDA provides one with the necessary framework that links the technological aspect of a commodity or machine, to its performance and environmental interferences, thereby resulting with a decision-making criterion which weighs all the elicited issues on the ground, and hence giving a final solution. This is hence a key measurement for coming up with the necessary decisions. Such MCDAs can also be applied in the operations of a business or any other given organisation.
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