In this paper, we will discuss how to choose heating units using the utility function. This paper is conceived as a detailed continuation of the analysis made by the authors in their doctoral thesis. This paper is among the first tries of this type from Romania. A case study shows the practical application of this algorithm, and the results obtained were compared to the results obtained by other authors. The paper ends with the presentation of the numerical results and a few conclusions. We are also presenting several directions for future research in this field.
In this paper we propose a multi-criteria model based on the fuzzy preferences approach which can be implemented in the prenegotiation phase to evaluate the negotiations packages. The applicability of some multi-criteria ranking methods were discussed for building a scoring function for negotiation packages. The first one is Simple Additive Weighting (SAW) technique which determines the sum of the partial satisfactions from each negotiation issue and aggregate them using the issue weights. The other one is Distance Based Methods (DBM), with its extension based on the distances to ideal or anti-ideal package, i.e. the TOPSIS procedure. In our approach the negotiator's preferences over the issues are represented by fuzzy membership functions and next a selected multi-criteria decision making method is adopted to determine the global rating of each package. The membership functions are used here as the equivalents of utility functions spread over the negotiation issues, which let us compare different type of data. One of the key advantages of the approach proposed is its usefulness for building a general scoring function in the ill-structured negotiation problem, namely the situation in which the problem itself as well as the negotiators preferences cannot be precisely defined, the available information is uncertain, subjective and vague. Secondly, all proposed variants of scoring functions produce consistent rankings, even though the new packages are added (or removed) and do not result in rank reversal.
Relevant indicators and measurement methods should be assessed in order to contribute to optimize management of an enterprise. Business performance can be measured by various indicators and various business results could be assessed. Analyses of value chains should be focused on specification of so called bottle necks which mention those activities that disable to increase business margin. At the same time, these analyses show the inefficiency caused by oversized of some activities regarding to lower level of assurance or safety and lower performance of other business activities. Importance of multi criteria decision-making methods for evaluation of alternatives doesn´t lie in definite increasing of results objectivity although it should lead to that. Priority of this method lies mainly in simplification of manager´s decision making. It allows managers to arrange alternatives according to extensive file of criteria, it describes particular steps of solution and its logical sequence, this methodology also requires from managers to express their understanding of various criteria importance. All this process of solution is transparent, repeatable and there are evident starting assumptions and also how these assumptions, situations, criteria and incidents affect reached results.
Romualdas Ginevičius, Tomas Ginevičius, Dainora Gedvilaitė and Andrius Stasiukynas
Due to the growing scales of business and internationalisation, the issue of the office lease is becoming more and more relevant for companies. They are becoming an inherent part of business, on which the results of the commercial activity depend. Currently existing methodologies for the assessment of the office lease options are imperfect as they lack complexity; they are not associated with the objective of the lease – the improvement of the business results; the methods of the quantitative assessment of lease options are far from perfect. The paper aims at formulating the hierarchical indicator system of commercial real estate facilities (offices) adjusted for the multi-criteria assessment and at calculating the lease options based on this indicator system. To achieve this goal, the following methods have been used: scientific literature analysis and multi-criteria assessment methods.
The aim of this paper was to show the application of the ABC and AHP (multi-criteria method for hierarchical analysis of decision processes) as an important part of decision making in supply processes which are realized in the floral industry. The ABC analysis was performed in order to classify the product mix from the perspective of the demand values. This in consequence enabled us to identify the most important products which were then used as a variant in the AHP method.
Andrzej Biłozor, Małgorzata Renigier-Biłozor and Aleksandra Furman
Space as a public good should be used in a way that is consistent with recognized social, cultural, aesthetic, economical and ecological values. The optimization of space is associated with its limitations, thus it should be subjected to rational management. Optimizing the function of city space involves identifying the most mismatched features of the area and a proposal to convert them into functions best suited with respect to the existing natural and anthropogenic, social, economic and ecological conditions. The selection criteria of the optimal use of land will be presented, as well as the parameters characterizing them and the possibility of using chosen multi-criteria methods of analysis. Social, economic and ecological criteria adopted for the analysis are the basis for the sustainable development of an area and coincide with factors which ought to be taken into account during the development of land-planning documents.
Facing increasing business volumes and internationalisation, office lease issue is becoming increasingly relevant to business enterprises. They become an integral part of the business which determines the outcome of commercial activities. Current assessment methodologies for types of office leases are flawed because they lack comprehensiveness and they are not linked to the objective of a lease, that is improvement of business deliverables. The methods for quantitative assessment of lease types are flawed. The objective of this article is developing a hierarchical system of indicators in connection with commercial real estate (office) leases adapted for quantitative assessment using multi-criteria methods. As a result of the research, it has been obtained that such system contains three categories: economic, premises and environmental. 12 indicators fall into the first one, 24 - into the second and 16 - into the third one.
Jelena Stanković, Žarko Popović and Sanja Kostevski
Local economic environment is characterised by a range of economic, social, political and demographic parameters, based on which we can perform its analysis. Heterogeneity of relevant characteristics of the local economic environment imposes multiple criteria analysis as one of the suitable tools for the evaluation. Assessment of local economic environment often falls within the scope of group decision-making, as it is usually performed on the basis of an analysis of preferences of economic subjects or relevant experts on the issue of the economic environment at the local level. Regardless of whether it is based on economic subjects or expert group, in order to form a multi-criteria model, it is necessary to generate preferences of individuals into a single weight coefficient, which shows groups’ preference on the importance of each criterion. The subject of this paper is determination of weight coefficients in the multi-criteria model for the analysis of local economic development based on the preferences from a group of experts, by applying adequate statistical tools, and then by ranking local governments according to the quality of business environment perceived by the expert group.In addition to descriptive statistics and testing the significance of differences, in the paper is applied multi-criteria method Simple Additive Weights - SAW.
Sławomir Biruk, Piotr Jaśkowski and Agata Czarnigowska
The authors aim to provide a set of tools to facilitate the main stages of the competitive bidding process for construction contractors. These involve 1) deciding whether to bid, 2) calculating the total price, and 3) breaking down the total price into the items of the bill of quantities or the schedule of payments to optimise contractor cash flows. To define factors that affect the decision to bid, the authors rely upon literature on the subject and put forward that multi-criteria methods are applied to calculate a single measure of contract attractiveness (utility value). An attractive contract implies that the contractor is likely to offer a lower price to increase chances of winning the competition. The total bid price is thus to be interpolated between the lowest acceptable and the highest justifiable price based on the contract attractiveness. With the total bid price established, the next step is to split it between the items of the schedule of payments. A linear programming model is proposed for this purpose. The application of the models is illustrated with a numerical example.
The model produces an economically justified bid price together with its breakdown, maintaining the logical proportion between unit prices of particular items of the schedule of payment. Contrary to most methods presented in the literature, the method does not focus on the trade-off between probability of winning and the price but is solely devoted to defining the most reasonable price under project-specific circumstances.
The approach proposed in the paper promotes a systematic approach to real-life bidding problems. It integrates practices observed in operation of construction enterprises and uses directly available input. It may facilitate establishing the contractor’s in-house procedures and managerial decision support systems for the pricing process.
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