Multi-criteria decision-making (MCDM) models are widely used to evaluate criteria involved in assessing different alternatives. The methodology requires the definition of criteria weights. Among all the techniques applied to solve MCDM problems, the Analytic Hierarchy Process (AHP) is the most used. Specifically, it aims at determining weights through pairwise comparisons of criteria, asking the respondent whether one criterion is more important than another. Once the relative criteria importance is defined, the weights are inserted in the objective function to identify the best solution. However, typical AHP questionnaires implicitly assume that compared criteria have the same positive/negative impact on the objective function for all respondents; on the contrary, although two experts may agree that a criterion is highly important, one may intend that the objective function should maximize that criterion, the other may imply that it should minimize it. While in AHP theory this problem is addressed by incorporating negative values or clustering criteria that are opposite in direction into costs and benefits, there is no evidence that it has been faced in facility location selection problems, where multi-criteria approaches are crucial; indeed, it is worth noticing that, in industrial plant location choice, criteria direction strongly depends on sector typology and company strategy. As a result, it is not appropriate to assume the positivity or negativity of a criterion in advance. This paper aims at showing how the different direction of the criteria can significantly alter the results within a case-study for industrial plant location selection in developing countries. Specifically, on the one hand, it is demonstrated that assuming the same criteria direction can lead to incorrect evaluations and, on the other hand, practical suggestions for the development of facility location multi-criteria surveys are provided

Marino Lauria, S., Bait, S., Schiraldi, M.m. (2021). Managing criteria direction in Multi-Criteria Decision-Making Models for Facility Location Selection: a case study in African Developing Countries. In XXVI Conference “Industrial Systems Engineering” Summer School. AIDI - Italian Association of Industrial Operations Professors.

Managing criteria direction in Multi-Criteria Decision-Making Models for Facility Location Selection: a case study in African Developing Countries

Schiraldi M. M.
2021-09-10

Abstract

Multi-criteria decision-making (MCDM) models are widely used to evaluate criteria involved in assessing different alternatives. The methodology requires the definition of criteria weights. Among all the techniques applied to solve MCDM problems, the Analytic Hierarchy Process (AHP) is the most used. Specifically, it aims at determining weights through pairwise comparisons of criteria, asking the respondent whether one criterion is more important than another. Once the relative criteria importance is defined, the weights are inserted in the objective function to identify the best solution. However, typical AHP questionnaires implicitly assume that compared criteria have the same positive/negative impact on the objective function for all respondents; on the contrary, although two experts may agree that a criterion is highly important, one may intend that the objective function should maximize that criterion, the other may imply that it should minimize it. While in AHP theory this problem is addressed by incorporating negative values or clustering criteria that are opposite in direction into costs and benefits, there is no evidence that it has been faced in facility location selection problems, where multi-criteria approaches are crucial; indeed, it is worth noticing that, in industrial plant location choice, criteria direction strongly depends on sector typology and company strategy. As a result, it is not appropriate to assume the positivity or negativity of a criterion in advance. This paper aims at showing how the different direction of the criteria can significantly alter the results within a case-study for industrial plant location selection in developing countries. Specifically, on the one hand, it is demonstrated that assuming the same criteria direction can lead to incorrect evaluations and, on the other hand, practical suggestions for the development of facility location multi-criteria surveys are provided
XXVI Conference “Industrial Systems Engineering” Summer School
bergamo
2021
26
Rilevanza internazionale
10-set-2021
Settore ING-IND/17 - IMPIANTI INDUSTRIALI MECCANICI
English
AHP; Criteria direction; Developing Countries Industrialization; Facility Location Selection; Industrial Settlements; Multi-criteria decision making
https://www.scopus.com/record/display.uri?eid=2-s2.0-85124653043&origin=SingleRecordEmailAlert
Intervento a convegno
Marino Lauria, S., Bait, S., Schiraldi, M.m. (2021). Managing criteria direction in Multi-Criteria Decision-Making Models for Facility Location Selection: a case study in African Developing Countries. In XXVI Conference “Industrial Systems Engineering” Summer School. AIDI - Italian Association of Industrial Operations Professors.
Marino Lauria, S; Bait, S; Schiraldi, Mm
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/2108/283921
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 0
  • ???jsp.display-item.citation.isi??? ND
social impact