Smart Decisions
A Structured Approach to Decision Analysis Using MCDA
Wiley Series in Operations Research and Management Science
1. Edition February 2024
176 Pages, Hardcover
Textbook
Explore the fundamentals of Multi-Criteria Decision Analysis with help from Excel(r) and R
In Smart Decisions: A Structured Approach to Decision Analysis using MCDA, a distinguished team of decision-making specialists delivers a comprehensive and insightful exploration of the fundamentals of Multi-Criteria Decision Analysis methods. The book offers guidance on modeling decision problems using some of the most powerful methods in operations research.
Each chapter introduces a core MCDA method and guides the reader through a step-by-step approach to the implementation of the method using Microsoft(r) Excel(r) and then using R, a popular analytical language.
The book also includes:
* A thorough, step-by-step guide to Multi-Criteria Decision Analysis methods and the application of these methods in Microsoft Excel and R
* Extensive illustrations, R code, and software screenshots to aid the reader's understanding of the concepts discussed within
* A starter's guide to Excel and R programming
Perfect for graduate students in MBA programs and business schools, Smart Decisions: A Structured Approach to Decision Analysis Using MCDA is also an ideal resource for practitioners who apply MCDA in business, finance, applied mathematics, and engineering.
Acknowledgements ix
Chapter 1 - Introduction 1
1.1 How to Structure Your Decisions? 3
1.2 Different Stages in Decision-making 4
Chapter 2 - Get Started with Excel and R 9
2.1 Get Started with R 9
2.1.1 Types of Data in R 11
2.1.2 Work with Data in R 14
2.2 Get Started with Excel 16
2.2.1 Freeze Panes 18
2.2.2 Excel Formulas 18
2.2.3 Formatting Cells 19
2.2.4 Conditional Formatting 20
2.2.5 IF Statements 22
2.2.6 Charts 22
2.2.7 Searching and Sorting 26
2.2.8 Pivot Tables 28
2.2.9 Excel Solver 29
Chapter 3 - Direct Rating Methods 33
3.1 Select a House Using a Direct Rating Method in Excel 35
3.2 Select a House Using a Direct Rating Method in R 44
3.3 Further Problems to Test Your Direct Rating Method Skills 45
3.3.1 Purchase a New Laptop Using a Direct Rating Method 45
3.3.2 Select Manufacturing Equipment Using a Direct Rating Method 46
Chapter 4 - Pairwise Comparison Methods 47
4.1 Select a Candidate to Hire Using AHP in Excel 52
4.2 Select a Candidate to Hire Using AHP in R 60
4.3 Further Problems to Test Your AHP Skills 61
4.3.1 Select Equipment to Build Using AHP 62
4.3.2 Select a Server to Buy Using AHP 62
Chapter 5 - Ideal Point Methods 65
5.1 Select a Car to Purchase Using TOPSIS in Excel 68
5.2 Select a Car to Purchase Using TOPSIS in R 76
5.3 Further Problems to Test Your TOPSIS Skills 77
5.3.1 Select Office Space Using TOPSIS 77
5.3.2 Select Venue for Lunch Using TOPSIS 78
Chapter 6 - Outranking Methods 79
6.1 Introduction to ELECTRE 80
6.1.1 Concordance and Discordance 82
6.1.2 Credibility 85
6.1.3 Distillation 86
6.2 ELECTRE in Microsoft Excel 87
6.3 ELECTRE in R 92
6.4 Further Problems to Test Your ELECTRE Skills 94
Chapter 7 - Promethee 97
7.1 Theme Park 99
7.2 PROMETHEE in Excel 103
7.3 PROMETHEE in R 106
7.4 Further Problems to Test Your PROMETHEE Skills 107
Chapter 8 - Goal Programming 109
8.1 Select How Many Products to Manufacture Using Goal Programming in Excel 110
8.2 Select How Many Products to Manufacture Using Goal Programming in R 121
8.3 Further Problems to Test Your Goal Programming Skills 122
Chapter 9 - Evolutionary Optimisation 125
9.1 European Road Trip 125
9.2 Model the European Road Trip in Excel 126
9.3 Model the European Road Trip in R 132
9.4 Further Problems to Test Your Evolutionary Optimisation Skills 134
Chapter 10 - Dealing with Uncertainty 137
10.1 Select the Best Way to Cut Down a Tree in Excel 140
10.2 Select the Best Way to Cut Down a Tree in R 148
10.3 Further Problems to Test Your SURE Skills 149
10.3.1 Project Planning 149
10.3.2 Taking a Job 150
Index 151
Dr. Sajid Siraj is an associate professor in business analytics and the program director for a postgraduate program in business analytics and decision sciences. He is an active researcher in the field of decision support systems. He started his career as an electrical engineer working on microchip designing and developing device drivers. He also worked in the telecom sector for many years working on machine learning tools to identify potential frauds. Dr Siraj has developed open-source decision support tools which have been downloaded around the globe and has been used in numerous organisations. Dr Siraj has published in quality journals in the fields of operational research and decision support. His main research interests are in the field of explainability and fairness in decision support systems, primarily focusing on the machine learning algorithms.
Dr. Ellen Louise Hogg is a lecturer in business analytics who specialises in teaching data analytics, interactive visualisations and statistics. Louise gained her PhD at the University of Bristol investigating the mechanisms of memory that are affected during Alzheimer?s disease. She then moved on to become a postdoctoral researcher at the University of Bradford where she further investigated how inflammatory factors effect mechanisms of memory and specifically the role that these could be playing in associated diseases. It is the statistical and analytical skills that she learnt here that lead her to becoming interested in data analytics.
