Exam 14: Multicriteria Decisions

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A consistency ratio greater than 0.10 indicates inconsistency in the pair-wise comparisons.

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The goal programming problem below was solved with the Management Scientist. Min P1(d1-) + P2(d2+) + P3(d3-) s.t. 72x1 + 38x2 + 23x3 - 20,000 .72x1 -.76x2 - .23x3 + d1- - d1+ = 0 x3 + d2- - d2+ = 150 38x2 + d3- -d3+ = 2000 x1, x2, x3, d1-, d 1+, d2-, d2+, d3-, d3+ \ge 0 Partial output from three successive linear programming problems is given. For each problem, give the original objective function expression and its value, and list any constraints needed beyond those that were in the original problem. a. Objective Function Value =0.000 Variable Value Reduced Cost D1MINUS 0.000 1.000 X1 52.632 0.000 X2 0.000 0.000 X3 150.000 0.000 D1PLUS 3.395 0.000 D2MINUS 0.000 0.000 D2PLUS 0.000 0.000 D3MINUS 0.000 0.000 D3PLUS 0.000 0.000 b. Objective Function Value =0.000 Variable Value Reduced Cost D2PLUS 0.000 1.000 X1 52.632 0.000 X2 0.000 0.000 X3 150.000 0.000 D1MINUS 0.000 0.000 D1PLUS 3.395 0.000 D2MINUS 0.000 0.000 D3MINUS 0.000 0.000 D3PLUS 0.000 0.000 c. Objective Function Value =0.000 Variable Value Reduced Cost D3MINUS 0.000 1.000 X1 52.632 0.000 X2 0.000 0.000 X3 150.000 0.000 D1MINUS 0.000 0.000 D1PLUS 3.395 0.000 D2MINUS 0.000 0.000 D2PLUS 0.000 0.000 D3PLUS 0.000 0.000

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a.Min d1minus, Z = 0
b.Min d2plus, Z = 0, the constraint d1minus = 0 was included.c.Min d3minus, Z = 0, the constraint d2plus = 0 was included.

Objectives in multicriteria problems seldom conflict.

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There can only be one goal at each priority level.

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A problem involving only one priority level is not considered a goal programming problem.

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How can you be sure your rankings in AHP are consistent?

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Calculating the priority of each criterion in terms of its contribution to the overall goal is known as developing the hierarchy.

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One limitation of a scoring model is that it uses arbitrary weights that do not necessarily reflect the preferences of the individual decision maker.

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As treasurer of the school PTA, you chair the committee to decide how the $20,000 raised by candy sales will be spent. Four kinds of projects have been proposed, and facts on each are shown below. Froject Number Requested Unit Cost Volunteers Needed (Person-days, each) Basketball goals 12 \ 400 2 Encyclopedia sets 5 750 0 Field trips 6 300 3 Computer Stations 20 800 .5 Develop a goal programming model that would represent these goals and priorities. Friority 1 Goal 1 Spend the entire \ 20,000 . Goal 2 Do not use more than 50 person-days of volunteer time Friority 2 Goal 3 Frovide at least as many encyclopedias and computers as requested. Goal 4 Frovide at least as many field trips as requested. Goal 5 Do not provide any more basketball goals than

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Pair-wise comparisons are used to

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When using a linear programming approach to solving a goal programming problem, a linear program must be solved for each

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Rosie's Ribs is in need of an office management software package. After considerable research, Rosie has narrowed her choice to one of three packages: N-able, VersaSuite, and SoftTrack. She has determined her decision-making criteria, assigned a weight to each criterion, and rated how well each alternative satisfies each criterion. Criterion Decision Alternatives Weight N-Able VersaSuite Softrack Ease of use 4 3 5 8 Report generation 3 8 7 6 Functional integration 5 5 8 6 On-line help 3 8 6 4 Entry error-checking 2 8 3 4 Price 4 4 7 5 Support cost 3 6 5 7 Using a scoring model, determine the recommended software package for Rosie's.

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For a scoring model, the decision maker evaluates each decision alternative using equally weighted criteria.

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The goal programming problem with the objective function min P1(d1+) +P2(d2-) is initially solved by the computer and the objective function value is 0. What constraint should be added for the second problem?

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Computing the consistency ratio for a criterion's pair-wise comparison matrix is the next step after

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The goal programming approach can be used when an analyst is confronted with an infeasible solution to an ordinary linear program.

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A consumer group is using AHP to compare four used car models. Part of the pair-wise comparison matrix for "repair frequency" is shown below. a.Complete the matrix. b.Does it seem to be consistent? Repair Frequency Model A Model B Model C Model D Model A 1 5 1/6 Model B 1/5 1 1/2 Model C 1/4 1/3 1 Model D 1/4 1

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Preemptive priorities in goal programming

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Variables that indicate the distance a target is from the level achieved are called

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An item's priority reveals how it compares to its competitors on a specific criterion.

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