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Journal ArticleDOI

Improved AHP-group decision making for investment strategy selection

TL;DR: In this paper, an improved Analytical Hierarchy Process-group decision making (IAHP-GDM) model is proposed to reduce investment risk, which applies the method of least squares to adjust group decision matrix to satisfy the property of positive reciprocal matrix in AHP.
Abstract: Investment strategy selection relies heavily on personal experience and behavior. This paper proposes an improved Analytical Hierarchy Process-group decision making (IAHP-GDM) model to reduce investment risk. This model applies the method of least squares to adjust group decision matrix in order to satisfy the property of positive reciprocal matrix in AHP. In addition, five experts from related fields are invited to evaluate investment risk that takes group wisdom to eliminate personal bias. An empirical study is conducted to compare the proposed model to AHP for group decision making model. The results show that the IAHP-GDM model is not only accurate and effective, but also consistent with realistic investment environment.

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Citations
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Journal ArticleDOI
TL;DR: A sustainable innovation criteria framework for investigating sustainable supply chains in manufacturing companies is proposed and a sample of five Indian manufacturing companies are used to evaluate and prioritise the sustainable innovation management criteria, using the ‘best–worst’ multi-criteria decision-making model.
Abstract: Sustainability is hinged on innovation. The importance of sustainable innovation management in sustainable supply chain management (SSCM) cannot be underestimated. Studies on SSCM have emphasised t...

260 citations


Cites background from "Improved AHP-group decision making ..."

  • ...However, there are many authors that have used 5 or fewer experts for MCDM including Kannan, Pokharel, and Kumar (2009), Dou, Zhu, and Sarkis (2014), Govindan, Diabat, and Shankar (2015); Gupta and Barua 2016, 2017, 2018a; Shaw et al. (2012), and Wu et al. (2012)....

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Journal ArticleDOI
TL;DR: In this paper, the authors present a comprehensive literature review on various aggregation possibilities, and conduct a transparent comparative analysis of selected approaches and methods (geometric/ arithmetic aggregation of individual judgments, geometric/arithmetic aggregation of individuals priorities, geometric-arithmetic loss function approach and group AHP model).
Abstract: The analytic hierarchy process (AHP) and the analytic network process are important multiple criteria decision making methods for supporting complex, discrete strategic management decision problems. In order to exploit a broader information basis as well as to achieve a sufficient degree of objectivity strategic decision settings are mostly embedded into a multi-personal decision context to which different individuals with expert status contribute. Owing to the fact that there is a vast number of different methods and further internal possibilities (derivation of means) to aggregate the individual expert preferences to a group consensus, the first aim of this paper is to present a comprehensive literature review on various aggregation possibilities. The second aim is the conduction of a transparent comparative analysis of selected approaches and methods (geometric/arithmetic aggregation of individual judgments, geometric/arithmetic aggregation of individual priorities, geometric/arithmetic loss function approach and Group AHP model). Therefore, we use four different evaluation scenarios and point out under which assumptions which solution is suitable. Starting from these results, the aggregation techniques adequate to a specific decision context are provided.

145 citations

Journal ArticleDOI
TL;DR: In this article, two MCDM methods are applied in this research for decision making in high-tech industries in Iran and the final result shows that Nanotechnology is at the top of the list.
Abstract: One of the symbols of developed countries is high tech industries. High tech industries have a large margin. One of the priorities of developing countries is the progress in this type of industries. The decisions about priority of developing an industry are so hard that seems it should be seen from different perspectives. This research is focused on decision and policy making in priority of high tech industries in Iran. Two MCDM methods are applied in this research for decision making in this area. SWARA for evaluating and weighting criteria and COPRAS for evaluating and ranking alternatives are applied. Eleven experts from different fields participated in this research to make decision with SWARA and COPRAS. Four high tech industries including Biomedical Micro Electromechanical Systems (BioMEMS), Nano Technology, Biotechnology, and Biomedical Engineering were selected for this research. These industries were selected based on the potential of Iran. Final result shows that Nanotechnology is at the...

124 citations

Journal ArticleDOI
TL;DR: Two regression methods are developed to transform hesitant fuzzy preference relations (HFPRs) into reduced FPRs which satisfy the weak consistency and are more efficient in the Matlab environment.
Abstract: In this paper, we develop two regression methods that transform hesitant fuzzy preference relations (HFPRs) into fuzzy preference relations (FPRs). On the basis of the complete consistency, reduced FPRs with the highest consistency levels can be derived from HFPRs. Compared with a straightforward method, this regression method is more efficient in the Matlab environment. Based on the weak consistency, another regression method is developed to transform HFPRs into reduced FPRs which satisfy the weak consistency. Two algorithms are proposed for the two regression methods, and some examples are provided to verify the practicality and superiority of the proposed methods.

83 citations

Journal ArticleDOI
TL;DR: New integrated fuzzy techniques for fuzzy analytic hierarchy process (FAHP), fuzzy additive ratio assessment (ARASF) and multi segment goal programming (MSGP) approach to solve the green supplier selection problems are proposed.
Abstract: In recent years, determining the best supplier in the green supply chain has become a key strategic task for a firm. Since the decision usually involves several objectives or criteria, the green supplier selection process is a fuzzy multiple criteria decision-making (FMCDM) problem. Considering both qualitative and quantitative criteria, this study proposes new integrated fuzzy techniques for fuzzy analytic hierarchy process (FAHP), fuzzy additive ratio assessment (ARASF) and multi segment goal programming (MSGP) approach to solve the green supplier selection problems. The advantage of this method is that it allows decision makers to set multiple segment aspiration levels for green supplier selection problems. The integrated model is illustrated by an example in a watch firm.

70 citations

References
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Book ChapterDOI
01 Jan 1985
TL;DR: Analytic Hierarchy Process (AHP) as mentioned in this paper is a systematic procedure for representing the elements of any problem hierarchically, which organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pairwise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy.
Abstract: This chapter provides an overview of Analytic Hierarchy Process (AHP), which is a systematic procedure for representing the elements of any problem hierarchically. It organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pair-wise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy. These judgments are then translated to numbers. The AHP includes procedures and principles used to synthesize the many judgments to derive priorities among criteria and subsequently for alternative solutions. It is useful to note that the numbers thus obtained are ratio scale estimates and correspond to so-called hard numbers. Problem solving is a process of setting priorities in steps. One step decides on the most important elements of a problem, another on how best to repair, replace, test, and evaluate the elements, and another on how to implement the solution and measure performance.

16,547 citations

Journal ArticleDOI
TL;DR: The Analytic Hierarchy Process (AHP) as discussed by the authors is a multicriteria decision-making approach in which factors are arranged in a hierarchic structure, and the principles and philosophy of the theory are summarized giving general background information of the type of measurement utilized, its properties and applications.

7,202 citations

Journal ArticleDOI
TL;DR: The use of triangular fuzzy numbers for pairwise comprison scale of fuzzy AHP is introduced, and the use of the extent analysis method for the synthetic extent value S i of the pairwise comparison is used.

3,724 citations


"Improved AHP-group decision making ..." refers background or methods in this paper

  • ...Therefore it is unrealistic to expect that the decision makers have either complete information or a full understanding of all aspects of the problem (Chang 1996; Levary, Wan 1998; Ergu et al. 2011b)....

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  • ...The analytic hierarchy process (AHP) proposed by Saaty (1980) is a widely used decision making analysis tool for modeling unstructured problems in political, economic, social, and management sciences (Levary, Wan 1998; Chang 1996; Tupenaite et al....

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  • ...Therefore it is unrealistic to expect that the decision makers have either complete information or a full understanding of all aspects of the problem (Chang 1996; Levary, Wan 1998; Ergu et al....

    [...]

  • ...The analytic hierarchy process (AHP) proposed by Saaty (1980) is a widely used decision making analysis tool for modeling unstructured problems in political, economic, social, and management sciences (Levary, Wan 1998; Chang 1996; Tupenaite et al. 2010; Lin 2010; Cheng et al. 2011; Ergu et al. 2011b; Wu et al. 2010; Medineckienė, Björk 2011)....

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Posted Content
TL;DR: In this paper, the authors develop a general framework for analyzing corporate risk management policies and argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.
Abstract: This paper develops a general framework for analyzing corporate risk management policies. We begin by observing that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities. We then argue that this simple observation has wide-ranging implications for the design of risk management strategies. We delineate how these strategies should depend on such factors as shocks to investment and financing opportunities. We also discuss exchange-rate hedging strategies for multinationals. as well as strategies involving "nonlinear" instruments like options.

2,598 citations

Journal ArticleDOI
TL;DR: In this paper, a general framework for analyzing corporate risk management policies is developed, and the authors argue that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities.
Abstract: This paper develops a general framework for analyzing corporate risk management policies. We begin by observing that if external sources of finance are more costly to corporations than internally generated funds, there will typically be a benefit to hedging: hedging adds value to the extent that it helps ensure that a corporation has sufficient internal funds available to take advantage of attractive investment opportunities. We then argue that this simple observation has wide ranging implications for the design of risk management strategies. We delineate how these strategies should depend on such factors as shocks to investment and financing opportunities. We also discuss exchange rate hedging strategies for multinationals, as well as strategies involving “nonlinear” instruments like options.

2,485 citations