A Fuzzy AHP Approach to Evaluating Machine Tool Alternatives

Selecting process of a machine tool has been very important issue for companies for years, because the improper selection of a machine tool might cause of many problems affecting negatively on productivity, precision, flexibility and company’s responsive manufacturing capabilities. On the other hand, selecting the best machine tool from its increasing number of existing alternatives in market are multiple-criteria decision making (MCDM) problem in the presence of many quantitative and qualitative attributes. Therefore, in this paper, an analytic hierarchy process (AHP) is used for machine tool selection problem due to the fact that it has been widely used in evaluating various kinds of MCDM problems in both academic researches and practices. However, due to the vagueness and uncertainty on judgments of the decision-maker(s), the crisp pair wise comparison in the conventional AHP seems to insufficient and imprecise to capture the right judgments of decision-maker(s). That is why; fuzzy number logic is introduced in the pair wise comparison of AHP to make up for this deficiency in the conventional AHP. Shortly, in this study, an intelligent approach is proposed, where both techniques; fuzzy logic and AHP are come together, referred to as fuzzy AHP. First, the fuzzy AHP technique is used to weight the alternatives under multiple attributes; second Benefit/Cost (B/C) ratio analysis is carried out by using both the fuzzy AHP score and procurement cost, of each alternative. The alternative with highest B/C ratio is found out and called as the ultimate machine tool among others. In addition, a case study is also presented to make this approach more understandable for a decision-maker(s).     

Decision making in equipment selection: an integrated approach with AHP and PROMETHEE

Multi-attribute equipment selection is a very important issue for an effective manufacturing system, since the improper equipment selection might cause many problems affecting productivity, precision, flexibility and quality of the products negatively. On the other hand, selecting the best equipment among many alternatives is a multi-criteria decision making (MCDM) problem. In this study, an integrated approach which employs analytic hierarchy process (AHP) and preference ranking organization method for enrichment evaluations (PROMETHEE) together, is proposed for the equipment selection problem. The AHP is used to analyze the structure of the equipment selection problem and to determine weights of the criteria, and PROMETHEE method is used to obtain final ranking, and to make a sensitivity analysis by changing the weights. Proposed approach is applied to a problem of selecting milling machines to be purchased in an international company. Company management found the application and results satisfactory and implementable in their equipment selection decisions.     

Calibrated fuzzy AHP for current bank account selection

Fuzzy AHP is a hybrid method that combines Fuzzy Set Theory and AHP. It has been developed to take into account uncertainty and imprecision in the evaluations. Fuzzy Set Theory requires the definition of a membership function. At present, there are no indications of how these membership functions can be constructed. In this paper, a way to calibrate the membership functions with comparisons given by the decision-maker on alternatives with known measures is proposed. This new technique is illustrated in a study measuring the most important factors in selecting a student current account.     

Comparing appropriate decision support of human resource practices on organizational performance with DEA/AHP model

The issue of human resource practices has been widely applied to examine the organizational performance for multiple industries. Few researches have realized that the relationships of human resource practices to organizational performance in different culture types support the meaningful information. In this paper, an Analytical Hierarchical Process/Data Envelopment Analysis (AHP/DEA) model that helps in investigating the associated importance of human resource practices and organizational performance variables is proposed. This research involving 129 companies in the Taiwanese electronics industry and 112 branches in China are used to demonstrate and compare the impact of human resource practices on organizational performance in each organizational type with the proposed AHP/DEA model. The study contains five human resource practice variables and seven organizational performance variables through Linear Structure Relation (LISREL). The main findings suggest: (1) asking employee to participate company activities, because doing so may greatly consume the employees’ relationships in each organizational type for both the Taiwanese and branches electronics industry; and (2) the importance of employee relations is more significant in stratum and rational culture than in development and common culture regardless of Taiwanese companies or branches in China. Discussion and implication with respect to decision support are also addressed.     

Knowledge assets value creation map: Assessing knowledge assets value drivers using AHP

The paper presents an application of the analytic hierarchy process (AHP) methodology to support the complex decision making process concerning with the development of causal models showing how organisational knowledge assets contribute to create company’s value. The research is grounded in the resource-based view of the firm, which argues that organisational resources are bundled together. This involves difficulties in understanding which are the most important knowledge assets and how they contribute to company’s performance improvements. The application of the AHP allows to assess the weights for setting the priorities among knowledge assets against the company’s performance targets. Adopting the AHP, the knowledge assets value creation map (KAVCM) is proposed as an approach to visualise and analyse the cause-and-effect relationships linking knowledge assets with company’s performance. This allows to understand how to lever and drive knowledge assets in order to sustain company’s value creation dynamics. The application of the KAVCM is, finally, tested by its application to the identification of the knowledge assets value drivers at the basis of NPD performance improvements within an Italian leader company operating in sofa industry.     

Weapon selection using the AHP and TOPSIS methods under fuzzy environment

The weapon selection problem is a strategic issue and has a significant impact on the efficiency of defense systems. On the other hand, selecting the optimal weapon among many alternatives is a multi-criteria decision-making (MCDM) problem. This paper develops an evaluation model based on the analytic hierarchy process (AHP) and the technique for order performance by similarity to ideal solution (TOPSIS), to help the actors in defence industries for the selection of optimal weapon in a fuzzy environment where the vagueness and subjectivity are handled with linguistic values parameterized by triangular fuzzy numbers. The AHP is used to analyze the structure of the weapon selection problem and to determine weights of the criteria, and fuzzy TOPSIS method is used to obtain final ranking. A real world application is conducted to illustrate the utilization of the model for the weapon selection problem. The application could be interpreted as demonstrating the effectiveness and feasibility of the proposed model.     

Fuzzy multi-attribute selection among transportation companies using axiomatic design and analytic hierarchy process

The basic concept in axiomatic design (AD) is the existence of design axioms. First of these axioms is the independence axiom and the second one is the information axiom. Information axiom proposes the selection of the best alternative that has minimum information. Analytic hierarchy process (AHP) is another multi-attribute method which is a decision-making method for selecting the best among a set of alternatives, given some criteria. The method has been extensively applied, especially in large-scale problems where many criteria must be considered and where the evaluation of alternatives is mostly subjective. Multi-attribute transportation company selection is a very important activity for effective supply chain. Selection of the best company under determined criteria (such as cost, time, damage/loss, flexibility and documentation ability) using both multi-attribute AD and AHP will be realized in this study. The fuzzy multi-attribute AD approach is also developed and it is compared by one of fuzzy AHP methods in the literature. The selection process has been accomplished by aiding a software that includes crisp AD and fuzzy AD.     

AHP的改进算法及其在供应链中的应用

针对层次分析法（AHP）在群组决策应用中的不足,例如当AHP算法实际应用时,对其残缺矩阵、专家权重不同以及可信度等情况考虑不足,故将多目标决策中的可能满意度引入相容性检验与改进,提出了基于可能满意度的判断矩阵相容性修正及排序的改进AHP算法。接着分析影响节点企业选择的诸多因素,提出了两层评价指标体系。在此基础上应用改进的AHP算法建立节点企业选择模型。最后所采用一个实际的案例来验证所提算法的有效性和模型的可行性。     

Using Fuzzy AHP to manage Intellectual Capital assets: An application to the ICT service industry

In today’s competitive business environment, Intellectual Capital (IC) management is ever more recognized as a fundamental factor in gaining competitive advantage. Actually, most firms have only a vague idea of how to manage investments in IC and what they should obtain from these investments. As a result, many companies overlook to balance IC investments, overinvesting in some IC components and neglecting other ones. Following this lead, the aim of the paper is to assess the relative importance of IC components, with respect to their contribution to the company value creation, in order to obtain guidelines for IC management and investments.We propose a model for IC evaluation by integrating Fuzzy Logic and Analytic Hierarchy Process (AHP). This Fuzzy AHP approach allows to capture and foster IC dynamics: experts and managers are greatly supported by the use of linguistic variables in the evaluation process of the company intangible assets. Finally, the application of the Fuzzy AHP methodology to a group of ICT service companies is presented.     

改进的AHP算法在Web集群系统负载均衡中的应用

判断矩阵的建立和调整是AHP算法的关键。对Satty的1~9标度方法进行改进,引入3标度法建立判断矩阵。从正互反矩阵充分必要条件出发,提出判断矩阵不一致时的调整方法,以提高判断矩阵的一致性和减少计算量。该方法应用于Web集群系统负载均衡中,确定影响服务器负载的四大类参数的权重。实验表明,改进的AHP算法在判断矩阵不一致时,在尊重原始数据的基础上,调整判断矩阵的计算量减少,判断矩阵的一致性更好,同时可以提高负载均衡系统的性能。     

Strategic logistics outsourcing: An integrated QFD and fuzzy AHP approach

This paper develops an integrated approach, combining quality function deployment (QFD), fuzzy set theory, and analytic hierarchy process (AHP) approach, to evaluate and select the optimal third-party logistics service providers (3PLs). In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using fuzzy AHP. Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using fuzzy AHP again to make an optimal selection. The effectiveness of proposed approach is demonstrated by applying it to a Hong Kong based enterprise that supplies hard disk components. The proposed integrated approach outperforms the existing approaches because the outsourcing strategy and 3PLs selection are derived from the corporate/business strategy.     

基于改进AHP的储层综合评价方法

储层评价是油田有利区筛选及预测的重要基础和依据,针对传统AHP方法主观性强、判断矩阵不一致等问题,对AHP算法进行改进,提出一种基于改进AHP的储层综合评价方法. 该方法采用群组AHP方法构建判断矩阵以降低专家的主观性偏见;然后,利用最小二乘原理构建拟优一致矩阵解决判断矩阵的不一致性问题;其次,在计算底层指标的评价向量时将其分为定性指标和定量指标,其中定性指标采用专家评价得到评价向量,定量指标量则采用效用函数法和灰色层次分析法相结合得到评价向量;最后通过评价向量、各层指标权重对储层进行综合评价. 实例计算表明该方法可以获得更加科学、客观的储层评价标准,能提高研究区的开发效果并为后续开发方案的调整提供有利依据.     

Using analytic hierarchy process (AHP) to improve human performance: An application of multiple criteria decision making problem

In the global economy, the modern commercial and industrial organization needs to develop better methods of assessing the performance of the human resource than simply using performance measures such as efficiency or effectiveness. As organizations seek more aggressive ways to cut costs and to increase global competitiveness, the importance of establishing and sustaining high levels of employee performance increases. The main purpose of this paper is to solve the human performance improvement problem by employing Analytic Hierarchy Process (AHP) method. Decision makers (DMs) often deal with problems that involve multiple criteria. At given moments in time, companies will display characteristics that make certain factors; key factors in their competences. In this paper, we present a model, which illustrates the relations and importance between human performance improvement and the style of management. In using the AHP to model this problem, we developed a hierarchic structure to represent the problem of human performance management and made pairwise comparisons. In this paper, the AHP is suggested as a tool for implementing a multiple criteria performance improvement scheme. The AHP was used for the purpose of structuring and clarifying the relations and importance between human performance improvement and the style of management. The study found that in terms of company culture, participation, human capability, and attitudes the best management style in improving human performance is management by values.     

An integrated AHP and VIKOR for design concept evaluation based on rough number

Design concept evaluation at the early stage of product design has been widely recognized as one of the most critical phases in new product development as it determines the direction of the downstream design activities. However, the information at this stage is mainly subjective and imprecise which only depends on experts’ judgments. How to handle the vagueness and subjectivity in design concept evaluation becomes a critical issue. This paper presents a systematic evaluation method by integrating rough number based analytic hierarchy process (AHP) and rough number based compromise ranking method (also known as VIKOR) to evaluate design concepts under subjective environment. In this study, rough number is introduced to aggregate individual judgments and preferences and deal with the vagueness in decision-making. A novel AHP based on rough number is presented to determine the weight of each evaluation criterion. Then an improved rough number based VIKOR is proposed to evaluate the design concept alternatives. Sensitivity analysis is conducted to measure the impact of the decision makers’ risk to the final evaluation results. Finally, a practical example is put forward to validate the performance of the proposed method. The result shows that the proposed decision-making method can effectively enhance the objectivity in design concept evaluation under subjective environment.     

财务困境预测模型与仿真研究

公司财务困境受到决策者、市场、经济和政策多种因素影响,针对传统预测方法预测精度低缺陷,提出了一种贝叶斯判别分析的财务困境预测方法。首先选用了反映公司财务状况的24个指标作判别因子,建立了公司财务困境的贝叶斯判别分析模型,然后采用85个上市公司的实际数据作为学习样本建立贝叶斯判别函数,以交差确认估计法对判别准则进行评价,以验证模型的有效性,最后利用判别函数对5个待评价公司进行预测,得到判别函数值,进行仿真。结果表明,采用贝叶斯判别分析模型提高了公司财务困境的预测精度,是一种有效的财务困境预测方法。     

A Game-Theoretic Model of Virtual Operators Competition in a Two-Sided Telecommunication Market

This paper considers a market where two large companies provide services to the population through “cloud” virtual operators buying companies’ services and reselling them to clients. Each large company assigns a price for selling its services to virtual operators. Also the number of its clients and its resource (a characteristic of company’s attractiveness for clients) are known. The game process is a repetition of two-step games where virtual operators choose companies and prices for their services. Each virtual operator needs to choose a company whose services he is going to sell and also to define a price for the services to be sold to clients. Each virtual operator establishes the probability to choose the company and the price for services, taking into account that the partition of company’s clients choosing a given operator is defined by the Hotelling specification. At each step, each virtual operator seeks to maximize his payoff. We find the optimal strategies of the virtual operators and also explore the following question. Does the system achieve some stationary state in this repeated two-step game or a repeating cycle of states is formed instead?     

An integrated intuitionistic fuzzy AHP and SWOT method for outsourcing reverse logistics

We consider the problem faced by a company that must outsource reverse logistics (RL) activities to third-party providers. Addressing RL outsourcing problems has become increasingly relevant issue in the management science and decision making literatures. The correct evaluation and ranking of the decision criteria/priorities determining the selection of the best third-party RL providers (3PRLPs) is essential for the competitive performance of the outsourcing company. The method proposed in this study allows to identify and classify these decision criteria. First, the relevant criteria and sub-criteria are identified using a SWOT analysis. Then, Intuitionistic Fuzzy AHP is used to evaluate the relative importance weights among the criteria and the corresponding sub-criteria. These relative weights are implemented in a novel extension of Mikhailov's fuzzy preference programming method to produce local weights for all criteria and sub-criteria. Finally, these local weights are used to assign a global weight to each sub-criterion and create a ranking. We discuss the results obtained by applying the proposed model to a case study of a real company. In particular, these results show that the most important priority for the company when delegating RL activities to 3PRLPs is to focus on the core business, while reducing costs constitutes one of its least important priorities.     

A hybrid approach to concept selection through fuzzy analytic network process

Evaluating conceptual design alternatives in a new product development (NPD) environment has been one of the most critical issues for many companies which try to survive in the fast-growing world markets. Therefore, most companies have used various methods to successfully carry out this difficult and time-consuming evaluation process. Of these methods, analytic hierarchy process (AHP) has been widely used in multiple-criteria decision-making (MCDM) problems. But, in this study, we used analytical network process (ANP), a more general form of AHP, instead of AHP due to the fact that AHP cannot accommodate the variety of interactions, dependencies and feedback between higher and lower level elements. Furthermore, in some cases, due to the vagueness and uncertainty on the judgments of a decision-maker, the crisp pairwise comparison in the conventional ANP is insufficient and imprecise to capture the right judgments of the decision-maker. Therefore, a fuzzy logic is introduced in the pairwise comparison of ANP to make up for this deficiency in the conventional ANP, and is called as fuzzy ANP. In short, in this paper, a fuzzy ANP-based approach is proposed to evaluate a set of conceptual design alternatives developed in a NPD environment in order to reach to the best one satisfying both the needs and expectations of customers, and the engineering specifications of company. In addition, a numerical example is presented to illustrate the proposed approach.     

层次分析法在CRM中的应用

在客户关系管理(CRM)软件中,客户的满意度、忠诚度、信用度的衡量方法有很多。文中结合实际应用中的经验,提出了用层次分析法来计算用户的满意度、忠诚度、信用度,通过科学的方法定量地计算,使得软件对客户信息的管理达到最科学,从而最大限度地挖掘客户潜力,使企业的利润最大化。     

网络化制造系统中设备资源优选方法的研究

分析了层次分析法的优缺点,并详细介绍了其求解过程。根据成、德、绵区域网络化制造系统的开发实践,针对设备资源的特点,把层次分析法和模糊层次分析法相结合,让模糊层次分析法来解决层次分析法不能解决的问题,它们共同来完成网络化制造系统中的设备资源优选,最后通过实例验证了该方法的可行性和有效性。