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Lec1-Assigning Weights
Lec1-Assigning Weights
z
( K ri 1)
2. Rank Exponent : wti K
• ri is the rank of the ith objective
• K is the total number of objectives
(K r
j 1
j 1) z
4. Rank Order 1 K 1
Centroid: wt i
K j 1 r j
1 1 1
wt1 1 ... / K
2 3 K
1
wt K 0 0 0 ... / K
K
Alternative Weighting Methods
Indirect Weight Elicitation Techniques
Trade Offs:
• Objectives ranked in order of their overall swing in value
• Stakeholders asked if overall swing weight of the second
objective is as great as the swing from the lowest to some
intermediate point of the value scale of the first objective.
• The third objective is can now be compared to intermediate points
on either the first or second ranked objective and so on…
• Method works well when the value curves are firmly established
and when the value curves are continuous
Alternative Weighting Methods
Analytical Hierarchy Process:
This example will be carried out through the rest of the semester. It will be used to illustrate the use of
Decision Making under Uncertainty.
Example: Bicycle Wheel
• A good design will be judged on the
performance criteria (Evaluation Measures)
which are:
– Product life time
– Weight
– Cost
• First, we arrange these evaluation measures
in order of importance:
1. Cost: Consumer are initially concerned with price.
2. Weight: More discerning consumer are also
concerned with the weight.
3. Lifetime: Lifetime is important but consumers
assume that the wheel will last a reasonable
amount of time.
Example: Bicycle Wheel
Rank Exponent Rank Order
EM Rank Sum Rank Reciprocal
(dispersion=0.2) Centroid
The above are the relative weights calculated using the different direct
weighing techniques.
Note that, in each column, the total weights add up to 1. The relative
importance of each Evaluation Measure is denoted by what
percentage of the whole each EM occupies. The higher the value, the
more important the EM.
Example: Bicycle Wheel
• Balance Beam Approach (Indirect Method)
• System of equation are as follows:
Cost Weight Lifetime
Cost Weight
Weight Lifetime
• The smallest EM, Lifetime’s weight, is set to 1.
• From the equations, the other weights are chosen as
follows:
– Weight = 1.2
– Cost = 1.5 (this means that Cost is 1.5 times as important as
Lifetime.)
Example: Bicycle Wheel
• The normalized weights are then:
1.5
Cost 0.41
1 1.2 1.5
1.2
Weight 0.32
1 1.2 1.5
1
Lifetime 0.27
1 1.2 1.5