Possibilities of the Method of Successive Concessions When Selecting for Many Criteria

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MAGAZINE №3 (80) June 2017

AUTHORS  BRODETSKIY G.L., GUSEV D.A., MAZUNINA О.А., FEL A.V.

CATEGORY  Analysis in logistics and SCM

ABSTRACT

The paper proposes an approach to the improvement of the method of successive concessions, which is widely used in solving multicriteria optimization problems in logistics. For the first time, the special formats (hard and flexible) are formalized for the use of this method, making it possible to improve the quality of decision-making procedures by many criteria. These formats are illustrated by the example of the problem of the best choice of a location and the form of ownership of a warehouse. For the first time, the paper discusses the possibility of specifying analytically the ordering of particular criteria, needed for the method of successive concessions, if it is required by the decision-maker. For the first time, practical situations are analyzed, when for some groups of particular criteria such an analytical approach to setting the order of optimization procedures will determine the same importance between them. For such situations, an approach to the analysis of various variants of ordering of particular criteria is presented in order to expand the scope of available applications for the use of the method of successive concessions. For the first time, managers are given the opportunity to rank the given alternatives according to the method of successive concessions. The influence of various variants of ordering particular criteria on the ranking of alternatives is analyzed by such an optimization method. 

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