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AIC#
2. Please help Mr A to choose which car should buy among four kinds of car
(A, B, C, D) for his transportation.
- Find the dominated alternatives if any (that is you can ingored this one)
- Use the method of Collective Utility to find the best alternatives
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Objective L.O. AIC#
A B C D Weight
Life cycle 16 12 14 10 0.3
Gas comsumption 35 40 35 25 0.4
Price 22 18 20 16 0.3
Consider:
Life cycle is Z max
Gas consumption is Z max
Price is Z min
For Z max:
𝑍𝑖𝑗 − 𝑍𝑚𝑖𝑛
𝑏𝑖𝑗 =
𝑍𝑚𝑎𝑥 − 𝑍𝑚𝑖𝑛
For Z min
𝑍𝑚𝑎𝑥 − 𝑍𝑖𝑗
𝑏𝑖𝑗 =
𝑍𝑚𝑎𝑥 − 𝑍𝑚𝑖𝑛
We must use the polygon model to determine which one is nondominant project to
apply CU
bij A B C D Weight
Life cycle 1 0.33 0.67 0 0.3
Gas comsumption 0.67 1 0.67 0 0.4
Price 0 0.67 0.33 1 0.3
Based on bij value, we can draw polygon model and in this model, we can
conclude that A, B, C, D are nondominated alternatives so we can apply these
alternatives to calculate CU
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Objective L.O. AIC#
𝐶𝑈 = ∑𝑛𝑗=1 𝑏𝑖𝑗 ∗ 𝑤𝑗 ;
bij A B C D Weight
Life cycle 1 0.33 0.67 0 0.3
Gas comsumption 0.67 1 0.67 0 0.4
Price 0 0.67 0.33 1 0.3
CU 0.57 0.7 0.57 0.3
CU max = 0.7
The best alternative is B
Comprise model
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𝑛 2 2
|𝑍𝑗𝑄 − 𝑍𝑖𝑗 |
𝐿𝑖𝑗 = [∑ { } ]
|𝑍𝑗 𝑚𝑎𝑥 − 𝑍𝑗 𝑚𝑖𝑛 |
𝑗=1
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𝑛 2 2
|𝑍𝑗𝑄 − 𝑍𝑖𝑗 | × 𝑎𝑗
𝐿𝑋 = [∑ { } ]
|𝑍𝑗 𝑚𝑎𝑥 − 𝑍𝑗 𝑚𝑖𝑛 |
𝑗=1
Lij A B C D Weight
Life cycle 1 0.33 0.67 0 0.3
Gas comsumption 0.67 1 0.67 0 0.4
Price 0 0.67 0.33 1 0.3
Min L 0.402 0.458 0.349 0.3
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Objective L.O. AIC#
𝑆𝑖 = ∑𝑛𝑗=1 𝑠𝑖𝑗 × 𝑤𝑗 ;
c. Weight is very importance because it affects your selection about the criteria and
choice of project which is more suitable for your need and passion.
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Objective L.O. AIC#
4. Company ABC is developing new product for ceramic industry. There are 4
products proposals in the table below. Please choose the product among 4
kinds of products A, B, C, D
Product
Criteria Weight (%)
A B C D
Cost to develop product 30 60 40 35 0.2
Demand/year 20000 30000 10000 15000 0.25
Product life cycle 0.5 2 0.8 1.5 0.3
Profit per unit 2 10 5 6 0.15
Development time 3 9 5 5 0.1
a. Find the dominated alternative if any (that is you can ignore this one?)
b. Use the method of Collective Utility to find the best alternative
Consider:
Cost to develop product is Z min
Demand/year is Z max
Product life cycle is Z max
Profit is Z max
Development time is Z min
Product
bij Weight
A B C D
Cost to develop
1 0 0.67 0.83 0.2
product
Demand/year 0.5 1 0 0.25 0.25
Product life cycle 0 1 0.2 0.67 0.3
Profit per unit 0 1 0.375 0.5 0.15
Development time 1 0 0.67 0.67 0.1
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Objective L.O. AIC#
Based on polygon model, we can see that C is dominated by D => we can not
apply CU for alternative C
Product
bij Weight
A B C D
Cost to develop product 1 0 0.67 0.83 0.2
Demand/year 0.5 1 0 0.25 0.25
Product life cycle 0 1 0.2 0.67 0.3
Profit per unit 0 1 0.375 0.5 0.15
Development time 1 0 0.67 0.67 0.1
CU 0.425 0.700 x 0.572
CU max = 0.7
The best alternative is B
Comprise model
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𝑛 2 2
|𝑍𝑗𝑄 − 𝑍𝑖𝑗 |
𝐿𝑖𝑗 = [∑ { } ]
|𝑍𝑗 𝑚𝑎𝑥 − 𝑍𝑗 𝑚𝑖𝑛 |
𝑗=1
1
𝑛 2 2
|𝑍𝑗𝑄 − 𝑍𝑖𝑗 | × 𝑎𝑗
𝐿𝑋 = [∑ { } ]
|𝑍𝑗 𝑚𝑎𝑥 − 𝑍𝑗 𝑚𝑖𝑛 |
𝑗=1
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Objective L.O. AIC#
Product
Lij Weight
A B C D
Cost to develop product 1 0 0.67 0.83 0.2
Demand/year 0.5 1 0 0.25 0.25
Product life cycle 0 1 0.2 0.67 0.3
Profit per unit 0 1 0.375 0.5 0.15
Development time 1 0 0.67 0.67 0.1
Min L 0.256 0.418 x 0.286
5. The sign A -> B indicates that the alternative A is more favourable than B
A -> B; A -> E; B -> C; D -> B; D -> A; C -> E; F -> C
a. Choose the group of nondominant alternatives
b. Choose the best alternative given from the above information
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Objective L.O. AIC#
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Objective L.O. AIC#
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Objective L.O. AIC#
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