Umut Nalac

Duygu Durmuolu
IE-443
HW-3

Part I
1)
2)
3)

Networking Strategy Decision

Sensitivity Analysis (Productivity Enhancement)

VALUE FUNCTIONS
Productivity Enhance Cost Increase Security
x Value x Value
-1 0,00 Low: 0 -2 0,00
0 0,50 High: 150 -1 0,50
1 0,75 Mono: decreasing 0 0,83
2 1,00 Rho: 182,4 1 1,00 SUM
Base: 0,22 0,35 0,43 1
Weights: 0,23 0,37 0,4 1

SCORES (LEVELS)
Stat Quo 0 0 0
HQ/HCost 2 125 0,5
MQ/MCost 1 95 0
LQ/LCost 0,5 65 -1

WEIGHTED SINGLE DIMENSIONAL VALUES VALUES

Productivity Enhance Cost Increase Security
Stat Quo 0,12 0,37 0,33 0,82
HQ/HCost 0,23 0,08 0,37 0,68
MQ/MCost 0,17 0,17 0,33 0,68
LQ/LCost 0,14 0,24 0,20 0,59

SENSITIVITY ANALYSIS RESULTS (Security Weight)

0 0,2 0,4 0,6 0,8 1
Stat Quo 0,82 0,70 0,80 0,90 1,00 1,10 1,20
HQ/HCost 0,68 0,45 0,65 0,85 1,05 1,25 1,45
MQ/MCost 0,68 0,50 0,65 0,80 0,95 1,10 1,25
LQ/LCost 0,59 0,44 0,57 0,69 0,82 0,94 1,07

SENSITIVITY ANALYSIS RESULTS

1,00
0,90 Stat Quo
0,80
Value

HQ/HCost
0,70 MQ/MCost
0,60 LQ/LCost
0,50
0 0,2 0,4 0,6 0,8 1

Security Weight
Part II

1)
a)

UD_SELECT THE BEST JOB UD_COMPANY'S PRESTIGE UD_KIND OF CORPORATION UD_COMPANY TYPE
Goal Goal Goal Measure

UD_REPUTATION UD_REPUTATION DEGREE

Goal Measure

UD_SALARY UD_BONUS UD_BONUS AMOUNT

Goal Goal Measure

UD_MONTHLY WAGE UD_MONTHLY PAYMENT

Goal Measure

UD_STATUS UD_NEW GRADUATE POSITION UD_POSITION DEGREE

Goal Goal Measure

UD_PROMOTION UD_EASE OF PROMOTION

Goal Measure

UD_WORKLOAD UD_OVERTIME UD_OVERTIME RATING

Goal Goal Measure

UD_SHIFT UD_SHIFT DURATION

Goal Measure

b)

c)
 Assessment summary for Preference Set NEW PREF. SET
Common units
UD_BONUS AMOUNT: A continuous single-measure utility function with the following ranges:
least least most most mid- mid-
preferred preferred preferred preferred preference preference
range Level Utility Level Utility Level Utility
0 200 0.000 1000 1.000 800 0.500

UD_COMPANY TYPE: utilities assessed directly:

Label Utility

1 1.000
2 0.625
3 0.250
4 0.000

UD_EASE OF PROMOTION: utilities assessed directly:

Label Utility

0 0.000
1 0.500
2 1.000

UD_MONTHLY PAYMENT: A continuous single-measure utility function with the following ranges:
least least most most mid- mid-
preferred preferred preferred preferred preference preference
range Level Utility Level Utility Level Utility
0 3000 0.500 5000 1.000 4200 0.750
1 1000 0.000 3000 0.500 2500 0.250

UD_OVERTIME RATING: utilities assessed directly:

Label Utility

One Circle 1.000

Two Circle 0.500
Three Circle 0.000

UD_POSITION DEGREE: utilities assessed directly:

Label Utility

High 1.000
Medium 0.750
Low 0.000

UD_REPUTATION DEGREE: A continuous single-measure utility function with the following ranges:
least least most most mid- mid-
preferred preferred preferred preferred preference preference
range Level Utility Level Utility Level Utility
0 1 0.000 6 1.000 4 0.500

UD_SHIFT DURATION: A continuous single-measure utility function with the following ranges:
least least most most mid- mid-
preferred preferred preferred preferred preference preference
range Level Utility Level Utility Level Utility
0 7 0.000 4 1.000 5.5 0.500

Weights
UD_SELECT THE BEST JOB: a Utility function based on these tradeoffs:
A B

No interactions assessed

Probability Details
d)
1

Utility

0
200 1000

UD_BONUS AMOUNT (TL)

Preference Set = NEW PREF. SET

Bonus Amount = Exponential Function

Mid Value= 800
(1000-800)/(1000-200)= 0.25 according to Z table, R= 0.410
= 0.410(1000-200)= 328
y=[ 1-e^[-(x-200)/328] ] / [ 1-e^[-(1000-200)/328] ]

Utility histogram for UD_COMPANY TYPE labels

LabelUtility

1 1.000
2 0.625
3 0.250
4 0.000

Preference Set = NEW PREF. SET

Company Type= Piecewise Linear

y= -0.375x+1.375 (x<=3)
y= -0.25x+1 (x>3)
Utility histogram for UD_EASE OF PROMOTION labels

LabelUtility

0 0.000
1 0.500
2 1.000

Preference Set = NEW PREF. SET

Ease of Promotion= Linear Function

y= 0.5x

Utility

0
1000 5000

UD_MONTHLY PAYMENT (TL)

Preference Set = NEW PREF. SET

y=0.00016x-0.15 (x<=2500)
y=0.0005x-1 (2500< x <=3000
y=0.00021x-0.132 (3000<x<=4200)
y=0.0003125x-0.5625 (4200<x<=5000)
Utility histogram for UD_POSITION DEGREE labels

Label Utility

High 1.000
Medium 0.750
Low 0.000

Preference Set = NEW PREF. SET

Position Degree= Piecewise Linear Function
Low=0
Medium=1
High=2
The value increment between 1 and 2 is the smallest increment
The value increment between 0 and 1 is the three times that of between 1 and 2.
4x=1, x=0.25
y= 0.75x (x<=1)
y= 0.25x+0.5 (x>1)

Utility histogram for UD_OVERTIME RATING labels

Label Utility

One Circle 1.000

Two Circle 0.500
Three Circle 0.000

Preference Set = NEW PREF. SET

Overtime Rating= Linear

Three Circle = 0
Two Circle = 1
One Circle = 2
y= 0.5x
 1

Utility

0
1 6

UD_REPUTATION DEGREE (Degree)

, Preference Set = NEW PREF. SET
Reputation Degree= Exponential Function
Mid Value= 4
(6-4) / (6-1) = 0.4, according to Z table, R= 1.216
= 1.216 (6-1)= 6.08
y=[ 1-e^[-(x-1)/6.08] ] / [ 1-e^[-(6-1)/6.08] ]

Utility

0
4 7

UD_SHIFT DURATION (days/week)

Preference Set = NEW PREF. SET
Shift Duration= Linear
y= -0.25x+2
e)

Ranking for UD_SELECT THE BEST JOB Goal

Alternative Utility
UD_Shell-Energy 0.731
UD_Unilever-FMCG 0.580
UD_Yapkredi- Finance 0.401
UD_Delphi Reklam-Media/Ad. 0.367
UD_BNB Danmanlk-Consulting 0.340

UD_MONTHLY PAYMENT UD_BONUS AMOUNT UD_COMPANY TYPE

UD_REPUTATION DEGREE UD_POSITION DEGREE UD_OVERTIME RATING
UD_SHIFT DURATION UD_EASE OF PROMOTION

Preference Set = NEW PREF. SET

For Shell, ease of promotion and company type make different among all indicators. Unilever is at
second place by especially high reputation degree indicator. Yapkredi has average degrees of all
indicators. The last two alternatives have important ratio of position degree indicator.

f)

0.833 UD_Shell-Energy
UD_BNB Danmanlk-Consulting
UD_Yapkredi- Finance
UD_Unilever-FMCG
UD_Delphi Reklam-Media/Ad.

Utility

0.167
0 100
Percent of Weight on UD_WORKLOAD Goal

Preference Set = NEW PREF. SET

According to graph, workload is not sensitive due to no change in top ranking at sensitive
point.
 0.875 UD_Shell-Energy
UD_Delphi Reklam-Media/Ad.
UD_Unilever-FMCG
UD_BNB Danmanlk-Consulting
UD_Yapkredi- Finance

Utility

0.240
0 100
Percent of Weight on UD_STATUS Goal

Preference Set = NEW PREF. SET

According to graph, status graph is not sensitive due to no change in top ranking at sensitive
point.

1.000 UD_Unilever-FMCG
UD_Shell-Energy
UD_Yapkredi- Finance
UD_Delphi Reklam-Media/Ad.
UD_BNB Danmanlk-Consulting

Utility

0.000
0 100
Percent of Weight on UD_COMPANY'S PRESTIGE Goal

Preference Set = NEW PREF. SET

According to graph, companys prestige graph is not sensitive due to no change at 10

percentage interval.
 0.858 UD_BNB Danmanlk-Consulting
UD_Yapkredi- Finance
UD_Unilever-FMCG
UD_Delphi Reklam-Media/Ad.
UD_Shell-Energy

Utility

0.306
0 100
Percent of Weight on UD_SALARY Goal

Preference Set = NEW PREF. SET

According to graph, salary graph is not sensitive due to no change at 10 percentage interval.

g)
1.000

Utility

0.000
UD_SELECT T HE BEST JOB UD_SALARY UD_WORKLOAD UD_ST AT US UD_COMPANY'S PREST IGE

UD_Shell-Energy UD_Unilever-FMCG UD_Yapkredi- Finance

UD_Delphi Reklam-Media/Ad. UD_BNB Danmanlk-Consulting

Preference Set = NEW PREF. SET

h)
UD_SELECT THE BEST JOB Goal Utility for UD_Shell-Energy 0.731
UD_Unilever-FMCG 0.580
Total Difference 0.151

Difference UD_Unilever-FMCG UD_Shell-Energy

Total Difference 0.151

UD_OVERTIME RATING 0.125
UD_EASE OF PROMOTION 0.063
UD_REPUTATION DEGREE -0.034
UD_MONTHLY PAYMENT -0.007
UD_BONUS AMOUNT 0.004

Preference Set = NEW PREF. SET

In accordance with graph, overtime rating and ease of promotion indicators provides the
supremacy of Shell over Unilever. Unilevers better indicator reputation degree cannot give
enough utility to be ranked as 1st

2)
Ranking for UD_SELECT THE BEST JOB Goal

Alternative Utility
UD_Unilever-FMCG 0.982
UD_Shell-Energy 0.731
UD_Yapkredi- Finance 0.436
UD_Delphi Reklam-Media/Ad. 0.367
UD_BNB Danmanlk-Consulting 0.362

UD_MONTHLY PAYMENT UD_BONUS AMOUNT UD_COMPANY TYPE

UD_REPUTATION DEGREE UD_POSITION DEGREE UD_OVERTIME RATING
UD_SHIFT DURATION UD_EASE OF PROMOTION

Preference Set = NEW PREF. SET

The monthly payment indicator of Unilever,YapKredi and BNB is entered as proportions in

discrete form. As a result, ranking table is changed as it is seen in table above.
3)
Ranking for UD_SELECT THE BEST JOB Goal

Alternative Utility
UD_Shell-Energy 0.651
UD_Unilever-FMCG 0.518
UD_Delphi Reklam-Media/Ad. 0.406
UD_Yapkredi- Finance 0.364
UD_BNB Danmanlk-Consulting 0.312

UD_MONTHLY PAYMENT UD_BONUS AMOUNT UD_COMPANY TYPE

UD_REPUTATION DEGREE UD_POSITION DEGREE UD_OVERTIME RATING
UD_SHIFT DURATION UD_EASE OF PROMOTION UD_PERCANTAGE OF RISK OF LOWER POSITION

Preference Set = NEW PREF. SET

We added new objective, risk and its measure, percentage of risk of lower position. We
assigned high percentage of risk of lower position to Yapkredi, therefore ranking results are
changed. Yapkredi became 4th and Delphi became 3rd.

Part III

1)
a)
b)
C)
Assessment summary for Preference Set NEW PREF. SET
Common units
UD_COMPANY'S PRESTIGE: a Utility function assessed using AHP:

UD_BNB UD_DELPHI UD_SHELL UD_UNILEVER UD_YAPIKREDI

UD_BNB 0.0340566 0.5 0.125 0.111111 0.2
UD_DELPHI 2 0.0586156 0.2 0.166667 0.333333
UD_SHELL 8 5 0.32331 0.5 5
UD_UNILEVER 9 6 2 0.46904 6
UD_YAPIKREDI 5 3 0.2 0.166667 0.114978

Consistency Ratio = 0.0569144

UD_SALARY: a Utility function assessed using AHP:

UD_BNB UD_DELPHI UD_SHELL UD_UNILEVER UD_YAPIKREDI

UD_BNB 0.0518827 0.125 0.142857 0.5 0.333333
UD_DELPHI 8 0.44384 3 2 6
UD_SHELL 7 0.333333 0.182331 0.5 2
UD_UNILEVER 2 0.5 2 0.235588 4
UD_YAPIKREDI 3 0.166667 0.5 0.25 0.0863587

Consistency Ratio = 0.0893229

UD_STATUS: a Utility function assessed using AHP:

UD_BNB UD_DELPHI UD_SHELL UD_UNILEVER UD_YAPIKREDI

UD_BNB 0.0357502 0.5 0.166667 0.142857 0.111111
UD_DELPHI 2 0.0619797 0.333333 0.25 0.142857
UD_SHELL 6 3 0.156649 0.5 0.25
UD_UNILEVER 7 4 2 0.237726 0.333333
UD_YAPIKREDI 9 7 4 3 0.507895

Consistency Ratio = 0.0282936

UD_WORKLOAD: a Utility function assessed using AHP:

UD_BNB UD_DELPHI UD_SHELL UD_UNILEVER UD_YAPIKREDI

UD_BNB 0.404801 3 3 4 2
UD_DELPHI 0.333333 0.212855 2 2 2
UD_SHELL 0.333333 0.5 0.0849523 0.5 0.333333
UD_UNILEVER 0.25 0.5 2 0.111337 0.5
UD_YAPIKREDI 0.5 0.5 3 2 0.186056

Consistency Ratio = 0.0510057

Weights
UD_SELECTING THE BEST JOB: a Utility function assessed using AHP:

UD_COMPANY'S PRESTIGE UD_SALARY UD_STATUS UD_WORKLOAD

UD_COMPANY'S PRESTIGE 0.58171 3 5 7
UD_SALARY 0.333333 0.231361 2 4
UD_STATUS 0.2 0.5 0.120494 2
UD_WORKLOAD 0.142857 0.25 0.5 0.0664357

Consistency Ratio = 0.0106059

No interactions assessed

Probability Details
d)
Ranking for UD_SELECTING THE BEST JOB Goal

Alternative Utility
UD_UNILEVER 0.363
UD_SHELL 0.255
UD_YAPIKREDI 0.160
UD_DELPHI 0.158
UD_BNB 0.063

UD_COMPANY'S PRESTIGE UD_SALARY UD_STATUS

UD_WORKLOAD

Preference Set = NEW PREF. SET

Since we made a pair-wise comparison between objectives, we assigned values based on

their relative importance to each other. While we were assigning values, we paid attention
that the Consistency Index is smaller than or equal to 0.1. Due to a different method for
decision making is used, rankings have changed and Unilever became ahead of Shell and was
placed on the 1st place.

e)
0.469 UD_UNILEVER
UD_SHELL
UD_YAPIKREDI
UD_DELPHI
UD_BNB

Utility

0.034
0 100
Percent of Weight on UD_COMPANY'S PRESTIGE Measure

Preference Set = NEW PREF. SET

According to graph, companys prestige graph is not sensitive due to no change in top
ranking at sensitive point.
 0.444 UD_DELPHI
UD_UNILEVER
UD_SHELL
UD_YAPIKREDI
UD_BNB

Utility

0.052
0 100
Percent of Weight on UD_SALARY Measure

Preference Set = NEW PREF. SET

According to graph, salary graph is not sensitive due to no change in

top ranking at sensitive point.

0.508 UD_YAPIKREDI
UD_UNILEVER
UD_SHELL
UD_DELPHI
UD_BNB

Utility

0.036
0 100
Percent of Weight on UD_STATUS Measure

Preference Set = NEW PREF. SET

According to graph, status graph is not sensitive due to no change

in top ranking at sensitive point.
 0.405 UD_BNB
UD_DELPHI
UD_YAPIKREDI
UD_UNILEVER
UD_SHELL

Utility

0.039
0 100
Percent of Weight on UD_WORKLOAD Measure

Preference Set = NEW PREF. SET

According to graph, workload graph is not sensitive due to no change in top

ranking at sensitive point.

f)

1.000

Utility

0.000
UD_SELECTING THE BEST JOB UD_COMPANY'S PRESTIGE UD_SALARY UD_STATUS UD_WORKLOAD

UD_UNILEVER UD_SHELL UD_YAPIKREDI

UD_DELPHI UD_BNB

Preference Set = NEW PREF. SET

g)
UD_SELECT THE BEST JOB Goal Utility for UD_Unilever-FMCG 0.982
UD_Shell-Energy 0.731
Total Difference 0.251

Difference UD_Shell-Energy UD_Unilever-FMCG

Total Difference 0.251

UD_MONTHLY PAYMENT 0.409
UD_OVERTIME RATING -0.125
UD_EASE OF PROMOTION -0.063
UD_REPUTATION DEGREE 0.034
UD_BONUS AMOUNT -0.004

Preference Set = NEW PREF. SET

In accordance with graph, monthly payment and reputation degree indicators provides the
supremacy of Unilever over Shell. Shells better indicators overtime and ease of promotion
cannot give enough utility to be ranked as 1st

Part IV

Our rankings changed when AHP method was used instead of SUF method. The reason might
be that in SUF we compared measures and tried to rank them but in this method we
compared objectives in a pair-wise way so that we assigned relative importance level by
considering each and every pair. In addition, in AHP each and every pair of alternative were
compared and relative importance values were assigned, based on each objective.
Moreover, in SUF, weights are decided by fitting values into functions but in AHP, values are
summed for each objective in a column-wise way and then normalized in order to find
weights. All these differences between methods might cause differences in ranking of
alternatives.