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Wednesday, May 30, 2007

A World of Decisions

Very often we get challenged to make decisions on problems which have more than one criteria. This decision making process is referred to as "Multi-Criteria Decision Making (MCDM)".

MCDM defines two major classes for determining optimal decisions. The first known as Multi-Objective Decision Making (MODM), and the second Multi-Attribute Decision Making (MADM). Both classes could support single or multiple decision makers as well as multiple data types -deterministic, stochastic, or fuzzy.

MODM deals with problems in which the decision space is continuous. MADM on the other hand is used when solutions are discrete.

The key point in making decisions is not what one is deciding, but rather how the decision is made. The ability to make sound decisions is a fundamental life skill, each one of us experiences everyday.

To read further:
1. Tryantaphyllou, Shu, Sanchez, and Ray, "Multi-Criteria Decision Making: An Operations Research Approach", Encylopedia of Electrical and Electronics Engineering, John Wiley, 1998, pp. 175-186.

2. Hammond, Keeney, Raiffa, "Smart Choices: A Practical Guide to Making Better Life Decisions", Broadway Books, 2002

1 comment:

cary said...

A new product is coming within the next month that makes MCDM incredibly simple yet highly powerful. You can check it out here:

http://www.catalyst.com/products/choiceanalyst/index.html