Developing DEA-TOPSIS Method for Group Decision Making (Case Study: Ranking Blue Ocean Strategy Main Pathways for IRAFA)

Subject Areas : Statistics

Fatemeh Khoshkam ¹ ( MSc. Student Industrial Engineering, Department of Industrial Engineering, Shiraz Branch, Islamic Azad University, Shiraz, Iran )
Mehdi Abbasi ² ( Department of Industrial Engineering, Shiraz Branch, Islamic Azad University, Shiraz, Iran )

Received: 2019-10-09 Accepted : 2020-01-22 Published : 2021-05-22

Keywords: روش امتیازدهی وزن‌دار بٌردا, رتبه‌بندی, شش مسیر اصلی استراتژی اقیانوس آبی, DEA-TOPSIS گروهی,

Abstract :

The purpose of this research is to present a method based on DEA-TOPSIS for ranking the DMUs in group decision making. In the proposed method, after creating an expert team and determining their weights, the DMUs, inputs and outputs are determined and ranked in three stages. In the first stage, by using Euclidean Distance, the matrix of each expert is normalized and consequently, the DEA models corresponding to each expert are solved. The DMUs are divided into two groups, the first group consists of DMUs where at least one experts’ opinion is inefficient and the second group consists of DMUs where the views of all experts are efficient. In the second stage, the rank of the DMUs of the first group is determined by calculating the weighted arithmetic average. In the third stage, the rank of the DMUs of the second group is determined using the TOPSIS method for each expert, consequently, the final rank of the DMUs is calculated using the Weighted Borda Scoring Method. Then the proposed approach was implemented to rank the six-paths of the Blue Ocean Strategy of the IRAFA industry and management group. The IRAFA team of experts, consisting of seven senior experts, was formed, and their weights were determined. It was also found that six paths to restructure the Blue Ocean Strategy (DMUs) are effective on IRAFA Value Innovation, and the DEA model has four outputs (utility, price, cost, and acceptance). The results of solving the DEA model of each expert showed that there are four paths in the first group and two paths in the second group. Applying the Weighted Borda Scoring Method to rank the DMUs of the second group shows that creating a functional-emotional orientation for the organization's customers is the top priority of IRAFA

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