L2; Classic Methodologies

Question 1

Weighted Sum Method (WSM)

Answer 1

is also known as;
the simple additive weight method (SAW),
the simple multi attribute rating technique(SMART)
is simple to understand and straightforward to apply.
is most widely used for solving multi criteria decision making problem.
it allows the decision-maker to define criteria weights.which signifies the importance of the criterion.
The score calculated for each alternative is equal to the sum of the product of the weights and decision variables.

Method requires criteria to be maximising. (minimising criterion need to be inversed such as price.

As most problems will have multiple scales (price is £, distance in km) normalisation procedures need to be used prior to applying the method.

Question 2

Linear optimisation

Answer 2

known as Linear Programming
It was developed during World War 2 as a way to reduce the army’s costs and increase damage to the enemy.
Often used in management for maximising profits and minimising costs.

Question 3

Goal Programming

Answer 3

Business problems usually have more than one overall measure of performance(objectives) which are often conflicting.
Goal Programming has been around since 1950-60s and is a method which can be used to solve multi-objective problems.
The method is generally regarded as an adaptation of linear programming and is sometimes referred to as multi-objective linear programming.
In Goal Programming you need to set a specific numerical goal for each objective.
Deviational Variables are then minimised in an objective function to try to find a solution nearest to the goals.

Question 4

Difference between Weighted Goal Programming and Lexicographic Goal Programming?

Answer 4

WGP(Archimedean Goal Programming); allows for modest differences in importance that can be measured by assigning weights to the goals.
It is used with problems where all the goals have a somewhat similar importance.

Lexicographic Goal Programming (Pre-emptive Goal Programming) is focused on in order of importance and used when they are significant differences in the importance of goals.
It used priority levels to the goals.