Intro to Multi-Criteria Decision-Making – 1000minds

Summary

Multi-Criteria Decision Making (MCDM) is a method for prioritizing options based on multiple criteria. It involves setting criteria, determining their importance through trade-offs, and scoring alternatives accordingly. The process helps in making complex decisions simpler, such as choosing a house, by considering factors like view and design, and can also incorporate other considerations like cost for a more suitable choice.

Takeaways

• 📊 **MCDM Defined**: Multi-Criteria Decision Making (MCDM) is a method for prioritizing, ranking, or choosing among different alternatives based on multiple criteria.
• 🏥 **Real-World Applications**: MCDM is used in various scenarios like hospital patient prioritization, project investment decisions, and personal choices like buying a house.
• 🏠 **Alternatives**: In the context of MCDM, alternatives refer to the options being evaluated, such as different houses for sale.
• 📝 **Criteria**: Criteria are the factors considered when choosing between alternatives, like the number of bedrooms, view, and design of a house.
• 🔍 **Specifying Levels**: Each criterion has different levels of quality or satisfaction, such as 'poor', 'okay', or 'great' for a view.
• 🤔 **Trade-Offs**: MCDM involves making trade-offs between hypothetical alternatives to understand their relative importance.
• 📈 **Preference Values**: The method uses the trade-offs to calculate preference values, which represent the relative importance of each criterion.
• 📊 **Scoring and Ranking**: Alternatives are scored and ranked based on their performance against each criterion and the preference values.
• 💡 **Adding Alternatives**: Alternatives can be added before or after making trade-offs, but the highest-ranking option may not always be feasible.
• 💼 **Value for Money**: The value for money chart helps analyze alternatives alongside cost considerations to find a suitable choice.
• 📋 **Other Considerations**: Additional factors, positive or neutral, can be included to store information or influence the decision-making process.

Q & A

What is multi-criteria decision-making (MCDM)?

MCDM, or multi-criteria decision analysis, is a method used to prioritize, rank, or choose from various alternatives or options based on multiple criteria.

Can you give an example of where MCDM might be used?

MCDM can be used in situations like prioritizing patients for treatment in a hospital, deciding which project to invest in, or choosing which house to buy.

In the context of buying a house, what are 'alternatives'?

'Alternatives' refer to the different houses you're considering for purchase when using MCDM.

What are 'criteria' in the MCDM process?

'Criteria' are the factors or attributes that matter to you when choosing between different alternatives. For example, when buying a house, these could include the number of bedrooms, the view, or the design.

How do you specify different levels for each criterion?

For each criterion, you define different levels. For instance, a view might be classified as poor, okay, or great, and a design could be rated as ugly, okay, or excellent.

What are trade-offs in MCDM?

Trade-offs refer to decisions where you have to choose between alternatives with different pros and cons. For example, deciding between a house with a nice view but ugly design or a house with a poor view but excellent design.

What are preference values in MCDM?

Preference values represent how much each criterion matters to you. These are derived from the trade-offs you make and help score and rank the alternatives.

How does 1000 Minds use trade-offs to help in decision-making?

1000 Minds uses the trade-offs you make between different criteria to determine the relative importance of each criterion, which are then used to rank the alternatives.

What if the highest-ranked alternative is not the best choice for you?

If the highest-ranked alternative isn't ideal, you can use additional considerations, such as cost or other neutral factors, to find an alternative that suits you better.

What is the value for money chart in 1000 Minds?

The value for money chart allows you to compare alternatives based on their scores and other considerations like cost, helping you choose the most suitable option.