Valuation of urban industrial land: An analytic network process approach

In this paper an application of the Analytic Network Process (ANP) to asset valuation is presented. It has two purposes: solving some of the drawbacks found in classical asset valuation methods and broadening the scope of current approaches. The ANP is a method based on Multiple Criteria Decision Analysis (MCDA) that accurately models complex environments. This approach is particularly useful in problems which work with partially available data, qualitative variables and influences among the variables, which are very common situations in the valuation context. As an illustration, the new approach has been applied to a real case study of an industrial park located in Valencia (Spain) using three different models. The results confirm the validity of the methodology and show that the more information is incorporated into the model, the more accurate the solution will be, so the presented methodology stands out as a good alternative to current valuation approaches.     

An ANP framework for property pricing combining quantitative and qualitative attributes

This paper presents a new comparative methodology for the valuation of urban properties based on the Analytic Network Process (ANP), with the twin objective of overcoming the drawbacks found in classical urban valuation methods and enhancing the current set of tools available for the appraiser. The ANP enables to tackle contexts in which scant information is available, qualitative variables are considered and, unlike the Analytic Hierarchy Process, interdependences among variables are present, all very common situations in professional valuation practice, so this study proposes its application to the field of urban valuation. To illustrate the new proposal, a real case study is put forward alongside four different models for solving it, with the aim of analysing the varying accuracy of each model. It may be concluded that the more information taken into account in relation to the interdependences between criteria and alternatives, the greater the accuracy of the results.     

Fuzzy analytic hierarchy process: Fallacy of the popular methods

The fuzzy Analytic Hierarchy Process (fuzzy AHP) is a very popular decision making method and literally thousands of papers have been published about it. However, we find the basic logic of this approach has problems. From its methodology, the definition and operational rules of fuzzy numbers not only oppose the main logic of fuzzy set theory, but also oppose the basic principles of the AHP. In dealing with the outcomes, fuzzy AHP does not give a generally accepted method to rank fuzzy numbers and a way to check the validity of the results. Besides, we discuss the validity of the Analytic Hierarchy/Network Process (AHP/ANP) in complex and uncertain environments and find that fuzzy ANP is a false proposition because there is no fuzzy priority in the super matrix which provides the basis for the ANP. Although fuzzy AHP has been applied in many cases and cited hundreds of times, we hoped that those who use fuzzy AHP would understand the problems associated with this method.     

University objectives and socioeconomic results: A multicriteria measuring of alignment

Universities develop technology transfer mechanisms as the tools required to undertake missions committed to the socioeconomic environment. In this work a new proposal to measure the extent to which the goals or strategic objectives of a university are aligned with the results obtained through its technology transfer mechanisms with the local community is presented. This will enable to perform a diagnosis, by comparing the situation sought by the University Management team (expected case) with the actual one that derives from the application of the plans that implement the technology transfer mechanisms (real case). To achieve this, two different Multicriteria Decision Analysis techniques e.g. Analytic Network Process (ANP) and Analytic Hierarchy Process (AHP) will be used. Both the methodology and the MCDA techniques proposed need to be explained and clarified to the different experts who collaborate in the study, hence the facilitating process, key to the whole procedure, will be analysed in detail.The model proposed in this study is applied to analyse the case of the National University of Colombia – Bogotá Campus. Findings show that the following questions can be answered: (i) How much importance is granted by the University Management to the objectives of the University? (ii) To what extent are the objectives of the university fulfilled by the technology transfer mechanisms to the socioeconomic environment? (iii) Are the objectives of the university aligned with the results achieved through the technology transfer mechanisms?     

An intelligent decomposition of pairwise comparison matrices for large-scale decisions

A Pairwise Comparison Matrix (PCM) has been used to compute for relative priorities of elements and are integral components in widely applied decision making tools: the Analytic Hierarchy Process (AHP) and its generalized form, the Analytic Network Process (ANP). However, PCMs suffer from several issues limiting their applications to large-scale decision problems. These limitations can be attributed to the curse of dimensionality, that is, a large number of pairwise comparisons need to be elicited from a decision maker. This issue results to inconsistent preferences due to the limited cognitive powers of decision makers. To address these limitations, this research proposes a PCM decomposition methodology that reduces the elicited pairwise comparisons. A binary integer program is proposed to intelligently decompose a PCM into several smaller subsets using interdependence scores among elements. Since the subsets are disjoint, the most independent pivot element is identified to connect all subsets to derive the global weights of the elements from the original PCM. As a result, the number of pairwise comparison is reduced and consistency is of the comparisons is improved. The proposed decomposition methodology is applied to both AHP and ANP to demonstrate its advantages.     

A decision-support model for investment decisions in new ventures

The decision to invest in new ventures is characterized by incomplete information, where some measures of firm performance are quantitative, while some others are substituted by qualitative indicators. Qualitative attributes are defined in a relative sense. We develop a decision support model for identifying successful new ventures. The model integrates quantitative and qualitative variables through the use of the Analytic Hierarchy Process (AHP). The decision model gains in predictive accuracy through the use of qualitative attributes, and AHP imparts robustness to the qualitative measures.     

ANP application for evaluating Turkish mobile communication operators

The proposed decision model, based on Analytic Network Process (ANP), has been developed in order to determine the dynamics of the Global System for Mobile Communications (GSM) market. In accordance with the sequence of ANP, first of all, the problem was structured and modeled. At the next step, a quantitative analysis was conducted with the customers in order to assess the importance of the related factors and forecast the market shares of the Turkish mobile communication operators. The forecasted market share values were compared with actual ones for the validation of the decision model. The assessed importance of the factors in a valid model would be a potential competitive advantage for the mobile operators.     

A systematic procedure to evaluate an automobile manufacturer–distributor partnership

Automobile manufacturer–distributor partnerships are fundamental to the success of automobile companies. The complexity of the overall partnership model often causes difficulties in partnership study. This paper presents a systematic procedure to evaluate an automobile manufacturer–distributor partnership consisting of a large number of system variables. Firstly, Interpretive Structure Modeling (ISM) is used to sort system variables into groups of various characteristics. This sorting process provides an effective means to develop a three-stage hierarchic/network model of the partnership, including Stage I: partnership selection, Stage II: partnership establishment, and Stage III: partnership maintenance. Secondly, Analytic Hierarchy Process (AHP)/Analytic Network Process (ANP) are applied to partnership evaluation based on as many as 20 system variables. Relative importance weight of all variables is quantitatively determined. The most investment-worthy variables found are management strength and power. Finally, this paper makes a comparison between the optimum distributors identified by the present procedure and in practical cases. The usefulness and efficiency of the proposed procedure are ascertained with highly consistent results in the comparison.     

多人合作投资多元化中的层次分析法

本文利用层次分析法对企业中存在的多人合作投资多元化问题进行探讨与研究 ,将定性分析与定量计算结合起来 ,求解多元化投资规划中的权系数 .     

An effective Markov based approach for calculating the Limit Matrix in the analytic network process

Analytic network process is a multiple criteria decision analysis (MCDA) method that aids decision makers to choose among a number of possible alternatives or prioritize the criteria for making a decision in terms of importance. It handles both qualitative and quantitative criteria, that are compared in pairs, in order to forge a best compromise answer according to the different criteria and influences involved. The method has been widely applied and the literature review reveals a rising trend of ANP-related articles. The ‘power’ matrix method, a procedure necessary for the stability of the decision system, is one of the critical calculations in the mathematical part of the method. The present study proposes an alternative mathematical approach that is based on Markov chain processes and the well-known Gauss-Jordan elimination. The new approach obtains practically the same results as the power matrix method, requires slightly less time and number of calculations and handles effectively cyclic supermatrices, optimizing thus the whole procedure.     

基于ANP与模糊TOPSIS-CRITIC方法的不确定多属性决策模型

随着多属性决策问题的日益流行,处理决策问题的复杂程度也逐渐增加,针对其中权重不确定,难以量化各影响因素主观权重与客观权重以及指标排序不精确的问题,提出了一种将网络层次分析法(ANP)与模糊指标相关性的指标权重确定法(CRITIC)、逼近理想解排序法(TOPSIS)相结合的不确定多属性决策模型首先,在分别使用ANP方法和...     

A new methodology for sensitivity and stability analysis of analytic network models

In this paper we develop a methodology to study the sensitivity and the stability of models built using the Analytic Network Process. We study two types of stability: core and solution stability. The former deals with finding the region of the perturbation space in which the initial solution (i.e., the alternative that is ranked first) obtained from the ANP model remains most preferred. The latter deals with finding the regions of the perturbation space in which the solutions that were not initially most preferred (i.e., alternatives that were not ranked first) become most preferred (i.e., they are ranked first). The methodology consists of three stages: generation of the perturbation space, finding the boundaries of the regions in the perturbation space in which the different alternatives are ranked first, and finding the stability regions.     

ANP法在区域企业技术创新能力评价中的应用

在应用网络层次分析法(ANP)进行综合评价中存在两个问题:一是网络层次结构中子系统内部的依存关系往往缺乏实质性的阐述和研究,而这是网络层次结构的关键;二是没有通过实例比较网络层次法和层次分析法,证明网络层次分析法的实用价值.以区域企业技术创新能力的评价为背景,分别应用网络层次分析法(ANP)和层次分析法(AHP)建立评价指标体系,并利用各省数据评价了区域企业技术创新能力的现状,给出了政策建议,以期为制定区域企业技术创新战略、规划等提供了定量参考依据.     

Combined DEMATEL technique with hybrid MCDM methods for creating the aspired intelligent global manufacturing & logistics systems

The concept of globalization has been prosperous in the past decades while manufacturing as well as logistics have already become one of the most significant issues in the globalization era. However, while modern globalized firms are leveraging both global manufacturing resources as well as logistics systems for pursuing higher quality, lower cost as well as product differentiation, how to evaluate, selecting an appropriate global manufacturing strategy by considering issues from both aspects of global manufacturing as well as logistics has become one of the most critical and difficult issues. Moreover, how the chosen intertwined global manufacturing as well as logistics system is to be optimized so that the aspired level of the global manufacturing system can be achieved have few been addressed. Thus, this research aims to resolve the above mentioned global manufacturing and logistics strategy selection as well as system reconfiguration issue. A Decision Making Trial and Evaluation Laboratory (DEMATEL) technique based novel multiple criteria decision making (MCDM) method with Analytic Network Process (ANP), Grey Relational Analysis (GRA) as well as VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) will be proposed for selecting and re-configuring the aspired global manufacturing and logistics system. An empirical study based on the global manufacturing and logistics system design of a semiconductor company will be provided for verifying the effectiveness of this proposed methodology.     

Using an ANP performance management framework to manage the development of transversal competences in University degrees

Organisations are concerned about measuring the performance of the product/service they deliver to their customers. In all types of organisations, if a proper performance assessment is to be developed, it should be measured in different dimensions. At University, the new study programs include the development and assessment of transversal competences due to their importance in enhancing the abilities and improving the employability of students. The achievement of transversal competences can be assessed in different levels/stages; for example, the 1st and 2nd years of a Bachelor’s degree; the 3rd and 4th years of a Bachelor’s degree and at Master’s level. The purpose of this paper is to integrate the research into performance management in organisations to develop an approach consisting of four components (a methodology, a solid and integrated performance management framework, graphical diagrams and quantitative techniques) to assess and manage the achievement of transversal competences through the different levels of study using a consolidated approach. The proposal uses the Analytic Network Process (ANP) to model dependences and feedback among the elements of the competences.

     

Application of the integrated framework for the plant layout evaluation problem

During the past two decades, there was not enough research effort spent to study the plant layout evaluation problem compared with that in the plant layout design problem. Only lengthy criterion sets with little structure were proposed for evaluation purpose. Very few quantitative indices were developed for measuring the impacts resulting from the criteria. In addition, there was no reasonable mechanism available to integrate the criteria and indices to obtain a score for each layout alternative. Therefore, an integrated framework for the plant layout evaluation problem is proposed to overcome these three drawbacks. This framework includes a structured criterion set having 18 criteria represented by a three-level hierarchical structure, the corresponding quantitative and qualitative indices for the criteria, and the integration methodology. This paper presents the integration methodology. Six essential issues in developing the integration methodology are discussed (i.e., user flexibility, method of weight assignment, normalization of index values, preceding direction of integration process, insensitivity to intermediate changes, data deficiency and information imbalance). The characteristics of criteria and indices are utilized to reduce the integration effort. For example, the efforts spent in pairwise comparisons of criteria and alternative-criterion comparisons usually seen in the Analytic Hierarchy Process (AHP) are greatly reduced. The application of the integrated framework to two industrial cases including an electronic equipment manufacturer and a home furnishing manufacturer demonstrates the applicability of the research results.     

Supplier selection using axiomatic fuzzy set and TOPSIS methodology in supply chain management

The current paper presents a comprehensive methodology for supplier selection. In the first stage, the linguistic values expressed as trapezoidal fuzzy numbers are used to assess the weights of the criteria. The Axiomatic Fuzzy Set clustering (AFS) method, which handles ambiguity and fuzziness in the supplier selection problem effectively, is applied to cluster the suppliers and evaluate each potential supplier that aims at obtaining initial supplier ranking. In the second stage, the Fuzzy Analytic Hierarchy Process (FAHP) model is constructed to determine the weight of various quantitative and qualitative criteria. To address multiple decision criteria in supplier ranking, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) is employed to select the final suppliers. A numerical example composed of 30 suppliers and 6 criteria is studied, and the experimental results show that the proposed evaluation framework is suitable for supplier selection decisions even with the dependent criteria/attributes.     

Fuzzy Application to the Analytic Hierarchy Process for Robot Selection

The problem of Robot Selection is of great relevance in the present times of automation. Traditionally such problems were addressed using conventional techniques of Multi Criteria Decision Making such as The Analytic Hierarchy Process (AHP) and The Multi Attribute Utility Theory (MAUT). This paper proposes a methodology for solving common Robot Selection problems using a modification of the conventional AHP by incorporating ‘Fuzzy Linguistic Variables’ in place of numbers. The methodology encapsulates creation of Fuzzy Interface for conversion of input and output variables into suitable linguistic variables. Further, employing the fuzzification process by assigning the linguistic variables to numerical values of the membership functions and formulating suitable decision rules, the procedure culminates into the defuzzification process for converting fuzzy output into crisp value and obtaining the result in the form of Fuzzy Score. The proposed model is explained using a numerical example. The paper also presents a validation of the proposed methodology over real world problems and provides directions for future research towards the end.Additional support was provided by the National Science Foundation.     

Modelling a research portfolio using AHP — a group decision process

The problem of choosing a reseatch portfolio has been in the literature for many years. Suggested solutions have ranged from simple scoring models to complex mathematical resource allocation models, but the acceptance rate has been low. In this paper we present an application of a model based on th Analytic Hierarchy Process to a group decision situation. The results are encouraging, showing the positive nature of a model as a focal point in the process. They show that the interactive nature of the methodology encourages the development of subjective estimates and their subsequent discussion. An attempt to counter the problems of biasing was also made. The methodology presented is seen to be easy to use and adaptable, and becomes an integrating mechanism for the group.     

From vicious to virtuous circles: problem structuring for quantified decision making in operationalization of corporate social responsibility

There is no formalised approach for problem structuring and quantitative decision support to operationalise corporate social responsibility (CSR) implementation. In this paper, techniques for considering criteria relationships are outlined and a holistic, systematic framework combining a qualitative and quantitative method for practical CSR integration is provided. Cognitive mapping (CM) is applied to structure the problem picture, and the cause–effect relationships between decision elements. Soft CM methodology is employed to assess the cross-criteria interactions, at both an individual and a collective level. The interactions of criteria can have a significant impact upon CSR implementation. Such impacts can be direct or indirect through their close linkages to other criteria. The causal strategic map serves as an input to the analytic network process (ANP) to carry out the multi-criteria decision analysis. Then, CM and ANP are applied in a comparative analysis to verify whether the measures of criteria significance do correspond. The key criteria in networks are identified using centrality in CM and single limited priorities in ANP. This study demonstrates that using criteria without considering their interactions will result in shortcomings in the evaluation and assessment of CSR programmes. The holistic framework, combining CM and ANP proposed in this work, enhances the process of problem structuring and supports preference-based evaluation of decision alternatives. The results of our study yield that the mapping procedure has an influence on the criteria significance in networks. The correspondence between CM and ANP is stronger when cause relationships are rigidly interpreted. More unambiguous interpretations of causal relations can be achieved if methods are used jointly and common peaks of importance in both CM and ANP could potentially serve as indications of key decision elements.