Content uploaded by Golam Kabir
Author content
All content in this area was uploaded by Golam Kabir on Oct 23, 2014
Content may be subject to copyright.
A preview of the PDF is not available
Comparative analysis Of AHP and fuzzy AHP models for multicriteria inventory classification
Abstract and Figures
A systematic approach to the inventory control and classification may have a significant influence on company competitiveness. In practice, all inventories cannot be controlled with equal attention. In order to efficiently control the inventory items and to determine the suitable ordering policies for them, multi-criteria inventory classification is used. Analytical Hierarchy Process (AHP) is one of the best ways for deciding among the complex criteria structure in different levels. Fuzzy Analytical Hierarchy Process (FAHP) is a synthetic extension of classical AHP method when the fuzziness of the decision makers is considered. In this paper, a comparative analysis of AHP and FAHP for multi-criteria inventory classification model has been presented. To accredit the proposed models, those were implemented for the 351 raw materials of switch gear section of Energypac Engineering Limited (EEL), a large power engineering company of Bangladesh.
Figures - uploaded by Golam Kabir
Author content
All figure content in this area was uploaded by Golam Kabir
Content may be subject to copyright.
... Para la determinación de las matrices de comparaciones pareadas existen varias propuestas. En esta investigación se utiliza la planteada por Kabir y Hasin en [7], en la cual proponen variables lingüísticas para los pesos de importancia de cada criterio. En la tabla 2 se muestra esta información. ...
... 7 ≤ ≤ 9 Extremadamente preferido 9 ( ) = ( − 7)/(9 − 7) 7 ≤ ≤ 9 (7,9,9) Si la actividad i tiene uno de los números diferente de cero ya nombrados, cuando se compara con la actividad j, entonces la actividad j tiene el valor reciproco cuando se compara con la actividad i. ...
Comparación de técnicas de ponderación de criterios en metodologías de toma de decisiones multicriterio aplicadas a la jerarquización de tecnologías renovables. Resumen. En la presente investigación se realiza una comparación de diferentes técnicas para la determinación de la importancia relativa de criterios de decisión, a ser utilizados en la jerarquización de tecnologías de energías renovables para la producción de electricidad, por medio de métodos de toma de decisiones multicriterio. Para la ponderación de los criterios se consideran la técnica de comparaciones pareadas de Saaty, la comparación pareada con números difusos, la ponderación igualitaria de los criterios, y la ponderación por jerarquización. Las tecnologías consideradas fueron: Térmica solar, Térmica fotovoltaica, Geotérmica, Biomasa, Eólica, e Hidráulica; mientras que los criterios de decisión utilizados fueron: eficiencia en porcentaje, costo de instalación en dólares por kilovatio, costo de la electricidad en centavos de dólar por kilovatio-hora, emisiones de CO2 en kilogramos por kilovatio-hora, vida útil en años, y área utilizada en kilómetros cuadrados por kilovatio. Como método de soporte a la toma de decisión, se trabajó con TOPSIS, y la metodología propuesta se aplica a un caso de estudio ya tratado en anteriores investigaciones por diversos autores. Palabras Clave: Ponderación de criterios, TOPSIS, conjuntos difusos, energía renovable, energía eléctrica. Abstract. In this research a comparison of different techniques for determining the relative importance of decision criteria to be used in the ranking of renewable energy technologies for electricity production, by methods of multi-criteria decision-making, is presented. For the weighting of the criteria were considered the technique of paired comparisons of Saaty, the paired comparison with fuzzy numbers, the equal weighting of the criteria, weighting by ranking. The technologies considered were: Solar Thermal, Solar photovoltaic, Geothermal, Biomass, Wind, and Hydraulics; while the decision criteria used were: efficiency in percentage, installation cost in dollars per kilowatt, electricity cost in cents per kilowatt hour, CO2 emissions in kilograms per kilowatt-hour, life in years, and used area in square kilometers per kilowatt. As a method of supporting decision making, we worked with TOPSIS, and the proposed methodology is applied to a case study already discussed in previous research by various authors.
... present analysis, particularly FAHP, are flexible, capable of handling complicated problems, and generate reliable outcomes under uncertain conditions 24,27 . ...
In the context of the Sustainable Development Goals (SDGs), which strive to ensure comprehensive access to fundamental water, sanitation, and hygiene (WASH) services, it is extremely imperative to prioritize communities in need and still disadvantaged. Moreover, tackling the worldwide sanitation crisis entails advancing the development of productive and sustainable sanitation systems and infrastructure. Sanitation planning is a multidimensional exercise encompassing multiple dimensions, stakeholders, and strategies, typically with conflicting objectives. Poor planning, funding obstacles, stakeholder priorities, climatic changes, growing populations, system constraints, and user engagement all complicate the entire process. Intelligent strategic decision-making is crucial, particularly for resource-constrained economies. Multi-criteria decision analysis (MCDA) models offer opportunities to figure out and resolve such conflicts, while also optimizing prioritization and policymaking. These models assist with considering trade-offs, data uncertainty, and arriving at decisions by considering technical, economic, social, and environmental sustainability. In the present work, a two-stage integrated model of the Fuzzy Analytic Hierarchy Process (FAHP) and the Fuzzy Synthetic Evaluation Technique (FSET) was developed, accompanied by a sensitivity analysis, yielding an assessment index designated as the Sanitation Priority Index (SPI). This index is particularly applicable in prioritizing and categorizing communities in need of sanitation infrastructure (e.g., wastewater collection systems and treatment plants), considering competition over scarce resources, reliance on third-party funds, and sustainability factors. The decision-making problem was designed as a hierarchical structure that integrates all problem elements and specifies the key criteria contributing to the SPI. Fuzzy set theory handles data uncertainty, with FAHP evaluating criteria significance in a group decision-making context and FSET designing criteria membership functions. Field data on criteria contributing to the SPI is transformed into fuzzy intervals, synthesized, and defuzzified to derive the SPI at community level. The model’s robustness is examined using sensitivity analysis as it is applied to several Palestinian communities lacking sanitation infrastructure. The outcomes show that the demographic criterion has the major impact on the SPI (20.38%), followed by water consumption (16.76%) and wastewater reuse potential (15.40%). Environmental risks account for 12.40%, utilities’ competency (11.5%), and industrial wastes risks (8.72%). The socioeconomic context is valued at 5.10%, geographical constraints at 4.51%, and license constraints at 4.8%. Out of the 25 communities investigated, five exhibited SPI values surpassing 60.0%. Eleven communities possessed SPI values between 50.0% and 60.0%, and nine achieved SPI values ranging from 40.0 to 50.0%. The sensitivity analysis application reveals almost complete stability in prioritizing communities. Introducing this model into relevant bodies’ sanitation management practices and planning strategies holds the potential to significantly boost sustainable sanitation services as well as the performance of water and wastewater utilities. It further enables the incorporation of additional criteria and the interests of more stakeholders.
... Such problems require use of Multi-criteria Decision Making (MCDM) which are relatively simple in comparison to optimization techniques but can give very good solutions (Puška & Stojanović, 2022, Salimia et al, 2022, Selvaraj, 2019. Research reveals that linguistic evaluation-based multi-criteria decision-making techniques helps in making a best selection decision by using a weighting process within the current alternatives through pairwise comparisons, as demonstrated by Kabir and Hasin (2011) to classify inventory. There are numerous occasions when MCDM methods were used to solve selection problems by considering green criteria (Remadi & Frikha, 2020, Rashidi & Cullinane, 2019. ...
Sustainability is getting preference now-a-days in most of the countries in the world. This implies industrial and other developments for economic growth, and of course civilization, but certainly not at the cost of environmental degradation. Environmental conservation is a must. One of the major components of industrial sectors is their electrical energy inputs through electrical substation. Numerous research addresses the issue of energy pollution, cantering on fossil fuel. A very few research can be found which address the issue of pollution generated from electrical energy. This research addresses this issue, with special attention to electrical substations. In the last two or three decades, several electrical equipment manufacturers have started producing this equipment in Bangladesh, which were previously import-oriented. This equipment use various types of oils, acids, zinc and other metals, which are all environmentally hazardous. Thus, any industrial company, buying such equipment from substation manufacturers, should consider green aspects. As such, now it is of prime importance to select green suppliers of substation equipment. Since selection of right or green supplier involves multi-criteria evaluation, Multi-criteria Decision Making (MCDM) technique is essential. Additionally, both qualitative and quantitative criteria require fuzzy analysis to make it more precise and realistic. This research addressed the issue of environmental pollution, its sources, nature and severity, and their mitigation through selecting green suppliers.
... AHP helps in synthesiz-ing complex decision-making processes by quantifying the relative importance of various choices based on decision-maker's evaluations (Russo & Camanho, 2015). Despite being extensively utilized, AHP has been subject to criticism due to its inability to accurately emulate human thought processes and to generate inconsistent decision outputs (Kahraman et al., 2004;Whitaker, 2007;Pérez et al., 2006;Kabir & Hasin, 2011). To address these limitations, the FAHP, an extension of AHP, was developed. ...
The COVID-19 pandemic has significantly impacted the financial performance of various sectors across the globe, including the Indian pharmaceutical industry. This study aims to evaluate the financial performance of ten Indian pharmaceutical companies listed in the S&P BSE Healthcare Index over two distinct periods: before COVID-19 (2018–2020) and during the pandemic (2020–2022). A hybrid multicriteria decision-making (MCDM) approach, integrating the Fuzzy Analytic Hierarchy Process (FAHP) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), is employed to assess companies based on five key financial dimensions and several performance indicators. Results indicate that profitability, valuation, and growth ratios were the most critical dimensions, with weights of 0.21 each, followed by liquidity (0.19) and efficiency (0.18). Furthermore, among the companies evaluated, Divis Labs and Abbott India emerged as top performers, both during and before the pandemic, with Divis Labs registering closeness coefficients of 0.871 and 0.814 during 2020–2021 and 2021–2022. The findings highlight the financial resilience of these companies, offering valuable insights for stakeholders in formulating strategies to sustain financial stability during future crises.
Inventory management in e-commerce is a critical aspect that significantly affects both cost efficiency and customer satisfaction. The first part of the chapter discusses the literature review on the ABC inventory classification. In particular, attention is focused on multi-criteria models. Then the chapter presents a set of criteria which can be applied to inventory evaluation. The criteria are divided into non-Internet-oriented and Internet-oriented, designed to incorporate unique e-commerce elements such as search engine rankings and integration with a recommendation system. Next, other possible criteria which can be applied in the ABC inventory classification model are discussed. The final part of the chapter is a summary of the content presented in the chapter.
Throughout implementation of the IPv6 routing protocol for low power and lossy networks (RPL) on AMI network, parent selection acts as the critical function which aims to achieve reliable data transmission and energy-efficient objective of AMI network where the data should be transmitted with high PDR and low latency while the network lifetime should be long with workload-balanced network. According to the target objectives of AMI network, traditional single-parent selections fail to achieve a tradeoff between transmission performance, including PDR and latency, and energy-efficient. On the other hand, the multi-parent selection scheme has the disadvantage of unnecessary energy consumption on transmission overhead under high channel quality. In this paper, we propose trilateral smart switching (TSS) by modifying the evaluation concept of fuzzy analytic hierarchy process (FAHP) and exploiting a cognitive radio. TSS algorithm outperforms the tradeoff issue of existing single-parent and multi-parent selections by hybrid selecting parents, transmission scheme and communication channel. Under high channel quality, TSS activates a single-parent transmission on Zigbee channel for achieving energy-efficient objective. When the workload of parents becomes imbalanced or the channel quality worsens, TSS switches the transmission scheme and channel between multi-parent transmission on Zigbee and single-parent transmission on cognitive radio for balancing the workload and maintaining high transmission quality. Once the TSS provides high workload balancing ability, TSS achieves long network lifetime. Moreover, TSS provides high transmission performance—high PDR and low latency— by opportunistic transmitting on cognitive radio for all channel qualities.
Health is considered one of the major parameters of human development, especially in the current world's pandemic situation we need to understand the health status in the different geographical regions. In this paper, we have focused on measuring the health status of West Bengal districts for the year 2019. We have constructed a composite index of health considering six different important health indicators for each district. After reviewing the previous works of literature, we have decided to use a different technique of index formation instead of using the UNDP's Goalpost method or the PCA method. So, we have introduced the Analytical Hierarchy Process (AHP) as a multi-criteria decision-making tool for index formation. It has eliminated the problem of an equal weightage system and helps to determine the importance of the selected indicators in the ranking order. After implementing the AHP technique and constructing the district-level health index scores we have noticed that there is a significant health standard disparity present in West Bengal. A regional cluster of high index scores and low index scores is also noticed and shown on the West Bengal map. According to our result, North 24-Parganas has the top position while Puruliya has the worst condition regarding their health status in the year 2019.
Inventory classification is a very important part of inventory control which represents the technique of operational research discipline. A systematic approach to the inventory control and classification may have a significant influence on company competitiveness. The paper describes the results obtained by investigating the application of neural networks in multiple criteria inventory classification. Various structures of a back-propagation neural network have been analysed and the optimal one with the minimum Root Mean Square error selected. The predicted results are compared to those obtained by the multiple criteria classification using the analytical hierarchy process.
Purpose: With the development of information technology, ordinary commercial activities are evolving into e-commerce. In e-commerce, users can access services from any place as long as information technology is available. Currently, e-commerce is moving toward mobile commerce that allows users to do commercial activities while they are moving. This study aims to elucidate the factors that affect success in mobile commerce, and then evaluate and rate these factors by analyzing components of commercial activity in the mobile internet environment and give an evaluation method for mobile commerce in order to help researches and managers to determine the drawbacks and opportunities. Design/methodology/approach: A consumer survey was conducted through a structured undisguised questionnaire towards meeting the objectives of the study. An online questionnaire constituted the data collection instrument, while only internet users participated in the sample. The main goal of the questionnaire is to identify the success factors or criteria and sub-criteria for mobile commerce from the viewpoint of users' perception and to assess the decision-making executives for pair-wise comparisons using the fuzzy analytic hierarchical process (FAHP). Findings: A subjective and objective integrated approach has been put forward to determine attributes weights in Fuzzy AHP problems. The study identified the success factors or criteria and sub-criteria for mobile commerce from the viewpoint of users' perception. The main attractive factors for the customer are the trust and mobility factors. In addition, content quality, system quality, use, support, personalization factors are also important. Research limitations/implications: Sampling is a major limitation in this study. Since the survey was conducted based on a sample in Bangladesh, the prudent reader may need to interpret the results of the study with caution, particularly with respect to the generalization of research findings to Bangladesh mobile commerce customers as a whole. Practical implications: The principal practical implication is to identify the success factors or criteria and sub-criteria for mobile commerce from the viewpoint of users' perception. The criteria and decision alternatives or sub-criteria that are applied in this evaluation were selected based on the feedback from the questionnaire and literature review. On the other hand, from a professional point of view, future research should make several extensions to measure users' satisfaction with mobile commerce using user satisfaction index and evaluate commercial activities in ubiquitous environment, which is a process in the transition of commerce, using the success factors and alternatives of mobile commerce. Originality/value: There are no comparative studies about evaluation of customer oriented success factors for Bangladeshi mobile commerce users. A structured analysis of such customer-oriented factors provides good insights, and will help business managers to time the launch of mobile commerce businesses. It will become a useful assessment model for predicting and evaluating market tendencies.
Due to the popularity of Internet and growing business-to-consumer electronic commerce, the alternative products or services whose information can be acquired through the webs also significantly increased. In this paper, an intelligent agent system, which was initially designed and implemented for the specific application of supplier selection, is proposed to act for consumers in the matters of gathering information of expected suppliers and making an optimal choice from these suppliers. This agent system is composed of two subsystems, product gatherer and decision maker, to address the two key issues, finding out right products and making a right choice. First, Web Ontology Language (OWL) is utilized to define the ontology, which is used for processing the semantic content of gathered supplier's information. Decision maker subsystem utilized the Analytic Hierarchy Process (AHP), which is a structured technique for dealing with complex decisions, to make an optimal decision to contribute to the improvement of consumer-oriented e-commerce services.
The least-squares priority method is an effective priority method in the analytic hierarchy process. But it is not appropriate under fuzziness. This paper is concerned with the question of estimation of weights of factors by least squares from a fuzzy judgment matrix. First, the expression form of least squares under fuzziness is given. Then the associated system of equation is developed. After some properties of the system are investigated, the explicit solution is derived. Finally, it is shown that the solution of the system is the solution of the fuzzy least-squares. In this paper, an example is also given to illustrate the procedure.
Prioritising items for management attention has been advocated in operations management for a long time, normally using ABC analysis (inventory control). This focuses attention on the “A” category items to maximise managerial effectiveness. Empirical evidence shows that this is a reasonable rule for allocating scarce resource-management time but presents difficulties when the manager has to take more than one important dimension of a situation into account. A joint criteria matrix is put forward within the ABC framework and an industrial application given. The joint criteria matrix has practical utility provided ranking on some scale of measurement is realistic. The appropriate number of categories must be defined by the user. Combining criteria will probably require different analytical approaches, e.g. goal programming or heuristic approaches. Utilisation of the matrix by managers can provide an explicit method for taking a range of criteria into account in the development of inventory policies.
Presents a multicriteria approach to the ABC classification problem
in inventory control. The proposed method, based on Saaty's Analytic
Hierarchy Process, rates items on both qualitative and quantitative
criteria. Demonstrates the model through an example, using real data
from the maintenance department stock room of a pharmaceutical company.
A series of simulation experiments show how the resulting classification
can benefit inventory control in this company.
Inventory constraints, costs of lost production, safety and environmental objectives, strategies of maintenance adopted, logistics aspects of spare parts are some of the criteria taken into account, and spare parts classification is thus defined with respect to multiple attributes. In virtue of the large number of the potential operational characteristics to be considered, the decision diagram is integrated with a set of analytic hierarchy process models used to solve the various multi-attribute decision sub-problems at the different levels/nodes of the decision tree. An inventory policy matrix is defined to link the different classes of spare parts with the possible inventory management policies so as to identify the “best” control strategy for the spare stocks. The principles of the theory and an actual application in a company operating in the paper industry are reported in the paper.