Ime634 Vikor

IME634: Management
Decision Analysis
Raghu Nandan Sengupta
Industrial & Management Department
Indian Institute of Technology Kanpur
VIKOR RNSengupta,IME Dept.,IIT Kanpur,INDIA 1

VIKOR (VIseKriterijumska Optimizacija
I Kompromisno Resenje)
 The idea of VIKOR (VIseKriterijumska Optimizacija I
Kompromisno Resenje) i.e., Multicriteria Optimization and
Compromise Solution), a MCDM technique, was developed by
Serafim Opricovic during his Ph.D. work
 VIKOR method was introduced as one applicable technique to be
implemented within MCDM problem and it as developed as a
multi attribute decision making method to solve a discrete
decision making problem with non-commensurable (different
units) and conflicting criteria

VIKOR (contd..)
 In this method the decision maker likes a solution that
is closest to the ideal, and hence the
decisions/alternatives are evaluated/compared/ranked
accordingly
 While ranking, the decisions/alternatives, rather than
the best solution, is the target as finding out the ideal
solution is not always feasible, but rather the closest to
the ideal is what is practically possible.
VIKOR (contd..)
Two of the MCDM methods, i.e., VIKOR and
TOPSIS are based on an aggregating function
which represents the concept of closeness of the
solution to the ideal solution
In VIKOR we follow linear normalization while in
TOPSIS it is vector normalization

VIKOR (contd..)
 The use of normalization is used to eliminate the units of
criterion functions and thus ensure a level playing field for
different criterion
 In VIKOR we determine a maximum group utility for the majority
and a minimum of an individual regret for the opponent
 In TOPSIS a solution with the shortest distance to the ideal
solution and the greatest distance from the negative-ideal
solution is required to be found. While doing this we do not
consider the relative importance of these distances.

VIKOR (contd..)
 Assume you have decisions/alternatives, , and attributes/decision
criteria/goals ,
 Consider as the value of the attributes/decision criteria/goals for the
alternative such that , ;
 Here: and

VIKOR (contd..)
Remember is used to formulate the ranking
measure, where , is integer and denotes the
distance measure norm used for
 signifies the Manhattan norm while denotes
the infinity norm

VIKOR (contd..): Distance
 The norm or Manhattan distance between vector/points and is
. The name relates to the distance a taxi has to drive in a
rectangular street grid
 The norm between vector/points and is
 The norm between vector/points and is

VIKOR (contd..): Distance (Example)
 and

VIKOR (contd..): Distance (Example)
L_p Norm Values
60
50
40
30
20
10
0
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59 61 63 65 67 69 71 73 75 77 79 81 83 85 87 89 91 93 95 97 99


The green line (L2-norm) is the unique shortest
path, while the red, blue, yellow (L1-norm) are
all same length (=12) for the same route
This is why L2-norm has unique solution while L1-
norm does not have any unique solution
One can generalize this to n-dimension case

VIKOR Algorithm
Assume decisions/alternatives as ,
Assume attributes/decision criteria/goals are ,
We state the pseudo-codes for the working
principle of VIKOR

VIKOR Algorithm (contd..)
1: DEFINE: (matrix consisting of priority scores assigned to decisions/alternatives),,based on attributes/decision criteria/goals,; (weight for the attributes/decision criteria/goals) such that ; (function
relationship between attributes/decision criteria/goals for each decisions/alternatives);;;. Here ; and (distance norm)
2: INPUT: (matrix consisting of priority scores assigned to decisions/alternatives),,based on attributes/decision criteria/goals,; (weight for the attributes/decision criteria/goals) such that ; (function
relationship between attributes/decision criteria/goals for each decisions/alternatives). Here and .
3: START if:
4: START if:
5: CALCULATE: ;;; where ; and (distance norm)
6: END if
7: END if
8: CALCULATE: ;;
9: REPORT: ;;
10: END

VIKOR: Steps # 01 (Construct the
normalized decision matrix)
Assume the decision matrix, , m is
number of Alternatives and n is
number of Criterion

[ ]
30 100 0.9 9
40 120 0.3 7
𝑿 = 50 110 0.5 3
20 190 0.5 4
90 150 0.7 5 5× 4
 Convert the entries in X into scaled normalized values, where ,
which has no dimension
 Thus

 , where

[ ]
0.214439 0.714796 0.006433 0.064332
0.239091 0.717274 0.001793 0.041841
𝑹= 0.30581 0 0.672783 0.003058 0.018349
0.09324 0 0.885781 0.002331 0.018648
0.3663 00 0.610501 0.002849 0.02035 0 5 × 4
VIKOR: Step # 02 (Construct the weighted
If the decision maker decides on the set of
weights, depending on his/her preference,
then the weight, , such that

, such that

Calculate

[ [] ] [ ]
0.214439 0.714796 0.006433 0.064332 0.0536 0.1787 0.0016 0.0161
0.25 0.00 0.00 0.00
0.239091 0.717274 0.001793 0.041841 0.0598 0.1793 0.0004 0.0105
𝑭=𝑹𝑾= 0.305810 0.672783 0.003058 0.018349 0.0 0 0. 2 5 0. 00 0.0 0 = 0.0765 0.1682 0.0008 0.0046
0.00 0.00 0.25 0.00
0.093240 0.885781 0.002331 0.018648 0.0233 0.2214 0.0006 0.0047
0.00 0.00 0.00 0.25 4×4
0.366300 0.610501 0.002849 0.020350 5×4 0.0916 0.1526 0.0007 0.0051 5×4
VIKOR: Step # 03 (Determine the
maximum/best from the criterion values)
 Determine the maximum/best: ,
.
.

maximum/best from the criterion values)


minimum/worst from the criterion values)
 Determine the minimum/worst ,
.
.

minimum/worst from the criterion values)

VIKOR: Step # 03 (Graphical representation of
maximum/best and minimum/worst for each
criterion)
0.25
0.2
0.15
0.1
0.05
0
C1 C2 C3 C4
Max Min

VIKOR: Step # 04 (Determine the relative ratios based on
norm utilizing maximum/best and minimum/worst ratios)
 Compute: ,
.
.


 Compute: ,
.
.


maximum/minimum based on norm)
Find:, i.e.,
Find:, , i.e.,


Find:, , i.e.,
Find:, , i.e.,


VIKOR: Step # 06 (Calculate relative
ranking)
 Compute:,
.
.

VIKOR: Step # 06 (Calculate relative
ranking)
 is introduced as weight of the strategy of ‘‘the majority
of criteria” (or ‘‘the maximum group utility”), here one
can consider
 Rank the alternatives, sorting by the values , and in
decreasing order
 The results are three ranking lists.
 Propose as a compromise solution the alternatives
obtained above

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IME634: Management

VIKOR RNSengupta,IME Dept.,IIT Kanpur,INDIA 1

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5: CALCULATE: ;;; where ; and (distance norm)

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