Exam 9: Multicriteria Decision Making

Ashley's manufactures home furnishings for department stores. Planning is underway for the production of the following items during the next production period: Quilts Blinds Pillows Fabric required (yards) 7 4 9 Time required (hours) 1.5 2 0.5 Packaging material (ounces) 3 2 1 Profit 12 10 8 Ashley has 3000 yards of material in stock for this production period. Five hundred hours of production time are scheduled and 400 ounces of packaging material is available. Each of these quantities can be adjusted through overtime or extra purchases. Ashley's highest priority is to achieve a profit of $3200. Her second priority is to avoid additional purchases of packaging material. Third, she wants to use all of the scheduled production hours, and fourth, minimize any fabric remaining from the 3000 yards. Note that the deviational variables associated with each item are given in the table. -What is the objective function?

A(n) ________ variable is the amount by which a goal level is underachieved.

A required step in the analytic hierarchy process is to determine the

If the constraint 3_x1 + 4_x2 + (d_1-) - (d₁₊) = 250 measures hours, then

Two or more goals at the same priority level can be assigned weights to indicate their relative

Assume that a decision maker has to make a choice between three types of cars. Chevy, Honda, and Ford. Based on three criteria: comfort, MPG, and style. The row averages for criteria is summarized in the following column vector: $\left[ \begin{array} { l } .3 \\.5 \\.2\end{array} \right]$ The first row of the following matrix represents Chevy, the second row represents Honda, and the third row represents Ford. The preference matrix for the three types of cars is given as follows: $\left[ \begin{array} { l l l } .5 & .2 & .2 \\.3 & .7 & .2 \\.2 & .1 & .6\end{array} \right]$ Compute the overall score for each decision alternative (car). Which choice does the decision maker prefer?

In goal programming, terms are summed in the objective function in order to make consistent decisions.

In the analytical hierarchy process, a high consistency ratio is considered ________ consistent than a low consistency ratio.

Consider the following normalized matrix for car comfort that was computed using the analytical hierarchy process: Car A Car B Car C Car A 0.30 0.25 0.50 Car B 0.60 0.50 0.33 Car C 0.10 0.25 0.17 Which car is the most preferred based on comfort?

Assume that a decision maker using analytical hierarchy process generated the following pairwise comparison matrix. $\left[ \begin{array} { c c c } 1 & 6 & 5 \\1 / 6 & 1 & 1 / 2 \\1 / 5 & 2 & 1\end{array} \right]$ Calculate the normalized matrix.

A scoring model is more subjective than the analytical hierarchy process.

A business is trying to decide which restaurant to hold its annual awards banquet. Use the information below to determine the best choice. Restaurant Criteria Weight A B C Appearance 0.15 40 65 60 Service 0.30 75 80 70 Atmosphere 0.15 60 40 70 Location 0.10 90 100 75 Quality of food 0.30 70 80 75 Where should the restaurant be located?

A(n) ________ measures the degree of inconsistency in pairwise comparisons.

In synthesization, decision alternatives are prioritized within each criterion.

An investor has $80,000 to invest in three stocks, stock A costs $100, stock B costs $120 and stock C costs $80. Each stock A has a risk factor of 8, each stock B has a risk factor of 10 and each stock C has a risk factor of 7. The investor believes that the sum of the risk factors for all stocks purchase should not exceed 6000. The projected annual growth rate for the three stocks are 9%, 13% and 8% respectively. The projected annual dividend income from these stocks are as follows: Stock A: $14/stock, Stock B: $15/stock, and Stock C: $20/stock. The investor desires an annual dividend income of $10,000. The investor has established the following goals in order of their importance: (1) The investor believes that the budget cannot be exceeded. (d₁) (2) The risk factor should not exceed the target amount of 6000. (d₂) (3) The average annual growth rate in stock prices must be at least 10%. (d₃) (4) The investor desires a dividend income of at least $10,000. (d₄) -Write the budget constraint

In a pairwise comparison matrix the diagonal values will ________ equal ________.

On a preference scale for pairwise comparisons, the number "1" indicates that two objects are equally preferred.

Ashley's manufactures home furnishings for department stores. Planning is underway for the production of the following items during the next production period: Quilts Blinds Pillows Fabric required (yards) 7 4 9 Time required (hours) 1.5 2 0.5 Packaging material (ounces) 3 2 1 Profit 12 10 8 Ashley has 3000 yards of material in stock for this production period. Five hundred hours of production time are scheduled and 400 ounces of packaging material is available. Each of these quantities can be adjusted through overtime or extra purchases. Ashley's highest priority is to achieve a profit of $3200. Her second priority is to avoid additional purchases of packaging material. Third, she wants to use all of the scheduled production hours, and fourth, minimize any fabric remaining from the 3000 yards. Note that the deviational variables associated with each item are given in the table. -What is the production time constraint?

Deviational variables in a goal programming model constraint represent the

The objective function in all goal programming models is to ________ from the goal constraint levels.