An MCDM-DEA approach for technology selection

Subject Areas : Mathematical Optimization

A Alinezhad ¹ , A Makui ² , R Kiani Mavi ³ , M Zohrehbandian ⁴

1 - Assistant Prof., Dep. of Industrial Engineering, Islamic Azad University, Science and Research Branch, Tehran, Iran
2 - Assistant Professor, Dep. of Industrial Engineering, Iran University of Science and Technology, Tehran,
3 - Assistant Professor, Dep. of Industrial Management, Islamic Azad University, Qazvin Branch, Qazvin, Iran
4 - Assistant Professor, Dep. of Mathematics, Islamic Azad University, Karaj Branch, Karaj, Iran

Received: 2015-05-18 Accepted : 2015-05-18 Published : 2011-06-01

Keywords: DEA, AMT, Common weights, Displaced ideal, Technology selection, MCDM,

Abstract :

Technology selection is an important part of management of technology. Recently Karsak and Ahiska (2005) proposed a novel common weight multiple criteria decision making (MCDM) methodology for selection of the best Advanced Manufacturing Technology (AMT) candidates based on a number of attributes. However, Amin et al. (2006), by means of a numerical example demonstrated the convergence difficulty of the Karsak and Ahiska algorithms, and then introduced an improvement model to rectify that running problem. This paper presents an MCDM-DEA methodology in order to evaluate the relative efficiency of AMTs with respect to multiple outputs and a single exact input. Using displaced ideal methodology, a practical common weight is developed and its robustness and discriminating power are illustrated via a previously reported robot evaluation problem by comparing the ranking obtained by the proposed MCDM framework with that obtained by a data envelopment analysis (DEA) classic model.