Multi-criteria analysis is a decision-making technique that is used to evaluate multiple options based on several criteria. It is also called multi-criteria decision analysis, multi-criteria decision making methods, multi-criteria evaluation techniques, multi-criteria optimization models, or multi-criteria decision support systems. This approach helps individuals and organizations make informed decisions when faced with complex choice problems.
Multi-criteria analysis refers to a set of methods used to evaluate alternatives while considering multiple criteria under conflicting interests. It involves mapping the decision problem, defining the criteria used to evaluate each alternative, and assessing the relative importance of each criterion.
Multi-criteria analysis works by ranking alternatives based on different criteria and then aggregating these rankings to produce an overall score for each alternative. This approach allows decision-makers to consider all relevant factors and weigh them according to their relative importance.
Some key benefits of using multi-criteria analysis include:
Multi-criteria analysis can be applied in various fields such as business, engineering, health care, environmental management, and public policy. It can be used in any situation where multiple options need to be evaluated based on multiple criteria.
There are various tools available for conducting multi-criteria analysis such as Decision Matrix Analysis, Analytic Hierarchy Process (AHP), Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), and Simple Additive Weighting (SAW).
Some limitations of multi-criteria analysis include the possibility of biases, subjectivity, and difficulty in quantifying certain criteria. Additionally, it may be time-consuming to gather and process all relevant information.
One can get started with multi-criteria analysis by first identifying the decision problem, defining the criteria used to evaluate each alternative, and assessing the relative importance of each criterion. Then, one can use a suitable tool to rank alternatives based on different criteria and aggregate these rankings to produce an overall score for each alternative.
