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Smart Decisions
A Structured Approach to Decision Analysis Using MCDA

Richard Edgar Hodgett (Author), Sajid Siraj (Author), Ellen Louise Hogg (Author)

9781119309338, Wiley

Hardback, published 22 February 2024

176 pages
22.9 x 15.2 x 1.7 cm, 0.397 kg

Explore the fundamentals of Multi-Criteria Decision Analysis with help from Excel® 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® Excel® 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.

Preface vii

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

Subject Areas: Business & management [KJ]

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