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Multicriteria decision model for outsourcing contracts selection based on utility function and ELECTRE method

An outsourcing contract problem has been analyzed. This is a typical problem when dealing with outsourcing vendor selection. For each alternative of an outsourcing contract there is an evaluation of both cost and quality of service. The latter may include probabilistic delivery time and confidence in quality commitment. The decision-maker takes into account multicriteria evaluation through ELECTRE method. Besides, each criterion is evaluated through a utility function. The model integrates both approaches to indicate a contract proposal. This paper presents the formulation for the decision model and a numerical application to illustrate the use of the model.

A multicriteria model for risk sorting of natural gas pipelines based on ELECTRE TRI integrating Utility Theory

This paper proposes a multicriteria model for assessing risk in natural gas pipelines, and for classifying sections of pipeline into risk categories. The model integrates Utility Theory and the ELECTRE TRI method. It aims to help transmission and distribution companies, when engaged in risk management and decision-making, to consider the multiple dimensions of risk that may arise from pipeline accidents. Pipeline hazard scenarios are presented, and it is argued that the assessment of risk in natural gas pipelines should not be based solely on probabilities of human fatalities, but should involve a wider perspective that simultaneously takes into consideration the human, environmental and financial dimensions of impacts of pipeline accidents. Finally, in order to verify the effectiveness of the model set out, a numerical application based on a real case study is presented.

A multi-criteria decision model to determine inspection intervals of condition monitoring based on delay time analysis

In periodic monitoring, the main problem is determining the inspection interval of condition monitoring. For this problem, the decision variable is represented by the time of next inspection of condition monitoring. There are several studies that deal with prescribing inspection intervals. But only a few of these allow the decision maker to observe simultaneously more than one aspect. This does not accord with the natural tendency of the decision maker who desires to see the decision problem from a broader perspective, by having different viewpoints or dimensions of choices. Therefore, the main objective of this paper is to propose a decision model, which can simultaneously determine inspection intervals for condition monitoring regarding the failure behavior of equipment to be inspected, features of maintainability and decision maker preferences about cost and downtime.

A PROMETHEE-based approach to portfolio selection problems

In this paper, we study the use of PROMETHEE outranking methods for portfolio selection problems. Starting from a new formulation of the PROMETHEE V method, we develop several alternative approaches based on the concepts of boundary portfolios and c-optimal portfolios. The proposed methods are compared in an extensive computational study. Results of these experiments show that methods based on the concept of c-optimal portfolios provide a good approximation to the (often computationally untractable) PROMETHEE ranking of all portfolios, while requiring only small computational effort even for large problems. For smaller problems, a PROMETHEE ranking of all boundary portfolios can be performed and provides a close approximation of the total ranking.

Multicriteria decision making on maintenance: Spares and contracts planning

Abstract The competitiveness of an industrial system is directly related to decision making in areas of product support logistics, such as the maintenance area. Multicriteria decision making takes into account various aspects associated with competitiveness of the system. This paper presents multicriteria decision models for two maintenance problems: repair contract selection and spares provisioning. In the repair contract problem the model incorporates consequences modelled through a multiattribute utility function. These consequences consist of contract cost and system performance, represented by the system interruption time. Two criteria (risk and cost) are combined through a multiattribute utility function in the spares provisioning decision model. This paper presents the formulation and derivations for both models and the numerical application illustrates the use of models including sensitivity analysis.

Multicriteria Modelling of Repair Contract Based on Utility and ELECTRE I Method with Dependability and Service Quality Criteria

A DM faces a choice among several alternatives of repair contract for a system. Each alternative of a repair contract implies specific results regarding the following characteristics or criteria: response time, quality service, dependability and related cost. This problem has been analysed through a multicriteria decision model. The model is based on the ELECTRE method combined with utility functions. Main theoretical aspects and practical implications are presented, including a numerical application.

Multicriteria and Multiobjective Models for Risk, Reliability and Maintenance Decision Analysis

Multiobjective and Multicriteria Problems and Decision Models.- Multiobjective and Multicriteria Decision Processes and Methods.- Basic Concepts on Risk Analysis, Reliability and Maintenance.- Multidimensional Risk Analysis.- Preventive Maintenance Decisions.- Decision Making in Condition-Based Maintenance.- Decision on Maintenance Outsourcing.- Spare Parts Planning Decisions.- Decision on Redundancy Allocation.- Design Selection Decisions.- Decisions on Priority Assignment for Maintenance Planning.- Other Risk, Reliability and Maintenance Decision Problems.

A new method for elicitation of criteria weights in additive models: Flexible and interactive tradeoff

This paper proposes the Flexible and Interactive Tradeoff (FITradeoff) method, for eliciting scaling constants or weights of criteria. The FITradeoff uses partial information about decision maker (DM) preferences to determine the most preferred in a specified set of alternatives, according to an additive model in MAVT (Multi-Attribute Value Theory) scope. This method uses the concept of flexible elicitation for improving the applicability of the traditional tradeoff elicitation procedure. FITradeoff offers two main benefits: the information required from the DM is reduced and the DM does not have to make adjustments for the indifference between two consequences (trade-off), which is a critical issue on the traditional tradeoff procedure. It is easier for the DM to make comparisons of consequences (or outcomes) based on strict preference rather than on indifference. The method is built into a decision support system and applied to two cases on supplier selection, already published in the literature.

A model for selecting project team members using multicriteria group decision making

Selecting a project team is a complex multi-criteria decision-making problem. For this reason, one appropriate way to tackle such problems involves the use of multi-criteria decision aid methods. However, most of the decisions taken regarding the selection of project teams are made by a group of people. It is this which changes the focus of the problem by moving from one decision-maker (DM) to a group of DMs. Analysis needs to be extended in order to consider the preference structure of each individual group member. In this paper, we present a group decision model for project team selection based on a multi-criteria evaluation of the preferences of a clients representatives. It could be applied to any decision problem since it involves a group of decision makers whose preferences diverge little. An application of the model in order to select consultants for a construction project is presented.

Multicriteria Model for Selection of Preventive Maintenance Intervals

Selecting preventive maintenance intervals is a problem addressed in the literature in which several different models are used according to the context and other issues. This article presents a multicriteria decision model to support decision makers in choosing the best maintenance interval based on the combination of conflicting criteria, such as reliability and cost. A procedure is proposed for using the model, which is based on multiattribute utility theory (MAUT). Moreover, a numerical application illustrates the use of the procedure, based on a real case study. The discussion of the results addresses theoretical issues and practical managerial implications related to the model proposed. This study shows that a multicriteria decision model is important for the maintenance and reliability community when a context of service production systems is to be accounted for due to interruptions caused by failures in this kind of production system. Copyright