ELECTRE Method
ELimination Et Choix Traduisant la REalité
ELECTRE (ELimination Et Choix Traduisant la REalité) is a family of outranking MCDM methods used to compare and rank alternatives under multiple conflicting criteria. ELECTRE determines whether one alternative outranks another by considering two concepts: Concordance, the degree to which the criteria support the statement that one alternative is at least as good as another and Discordance, the degree to which some criterion strongly contradicts that statement.
Video Demonstration
Step-by-Step Algorithm
Form the decision matrix
Create the decision matrix with $m$ alternatives and $n$ criteria :
\[ X=\begin{bmatrix} x_{11} & x_{12} & \cdots & x_{1n}\\ x_{21} & x_{22} & \cdots & x_{2n}\\ \vdots & \vdots & \ddots & \vdots\\ x_{m1} & x_{m2} & \cdots & x_{mn} \end{bmatrix} \]
\(x_{ij}\) presents the performance value of ith alternative on jth criterion, m and n are the numbers of alternatives and criteria respectively.
| Alternative | Criterion 1 ($C_1$) | Criterion 2 ($C_2$) | Criterion 3 ($C_3$) |
|---|---|---|---|
| $A_1$ | 10 | 20 | 30 |
| $A_2$ | 15 | 25 | 35 |
| $A_3$ | 25 | 15 | 35 |
Normalize the decision matrix
The normalized value is calculated as :
\(r_{ij}\) indicates the normalized value of the decision matrix of ith alternative in jth criteria.
| Alternative | Criterion 1 ($C_1$) | Criterion 2 ($C_2$) | Criterion 3 ($C_3$) |
|---|---|---|---|
| $A_1$ | 0.3244 | 0.5657 | 0.5183 |
| $A_2$ | 0.4867 | 0.7071 | 0.6047 |
| $A_3$ | 0.8111 | 0.4243 | 0.6047 |
Construct the weighted normalized decision matrix
Multiply each normalized value by the corresponding criterion weight :
The weighted normalized matrix is :
where \(w_j\) is the weight of criterion \(j\).
Using weights from the Entropy method: $w_1=0.7279$, $w_2=0.2009$, $w_3=0.0712$
| Alternative | Criterion 1 ($C_1$) | Criterion 2 ($C_2$) | Criterion 3 ($C_3$) |
|---|---|---|---|
| $A_1$ | 0.2361 | 0.1136 | 0.0369 |
| $A_2$ | 0.3543 | 0.1421 | 0.0431 |
| $A_3$ | 0.5904 | 0.0852 | 0.0431 |
Construct the concordance sets
For each pair of alternatives \(A_k\) and \(A_l\), the concordance set identifies the criteria where \(A_k\) performs at least as well as \(A_l\).
For a benefit criterion \(j\in J^{+}\) :
For a non-benefit criterion \(j\in J^{-}\) :
| $C_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | $\emptyset$ | $\{C_2\}$ |
| $A_2$ | $\{C_1, C_2, C_3\}$ | — | $\{C_2, C_3\}$ |
| $A_3$ | $\{C_1, C_3\}$ | $\{C_1, C_3\}$ | — |
Construct the discordance sets
For each pair of alternatives \(A_k\) and \(A_l\), the discordance set identifies the criteria where \(A_k\) performs worse than \(A_l\).
For a benefit criterion \(j\in J^{+}\) :
For a non-benefit criterion \(j\in J^{-}\) :
| $D_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | $\{C_1, C_2, C_3\}$ | $\{C_1, C_3\}$ |
| $A_2$ | $\emptyset$ | — | $\{C_1\}$ |
| $A_3$ | $\{C_2\}$ | $\{C_2\}$ | — |
Calculate the concordance matrix
The concordance index is calculated by summing the weights of the criteria in the concordance set :
The concordance matrix is :
| $c_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | 0.0000 | 0.2009 |
| $A_2$ | 1.0000 | — | 0.2721 |
| $A_3$ | 0.7991 | 0.7991 | — |
Calculate the discordance matrix
The discordance index can be calculated as :
The discordance matrix is :
| $d_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | 1.0000 | 1.0000 |
| $A_2$ | 0.0000 | — | 1.0000 |
| $A_3$ | 0.0802 | 0.2410 | — |
Determine the concordance threshold and the discordance threshold
The average concordance index can be used as the concordance threshold :
The average discordance index can be used as the discordance threshold :
| Threshold | Value |
|---|---|
| Concordance threshold ($\bar{c}$) | 0.5119 |
| Discordance threshold ($\bar{d}$) | 0.5535 |
Construct the dominant concordance matrix
| $f_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | 0 | 0 |
| $A_2$ | 1 | — | 0 |
| $A_3$ | 1 | 1 | — |
Construct the dominant discordance matrix
| $g_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | 0 | 0 |
| $A_2$ | 1 | — | 0 |
| $A_3$ | 1 | 1 | — |
Construct the aggregate dominance matrix
The aggregate dominance matrix is obtained by multiplying the corresponding elements of the dominant concordance and dominant discordance matrices.
\(A_k\) outranks \(A_l\) if and only if \(e_{kl}=1\).
Both concordance and discordance conditions must be satisfied simultaneously for an outranking relationship to hold.
| $e_{kl}$ | $A_1$ | $A_2$ | $A_3$ |
|---|---|---|---|
| $A_1$ | — | 0 | 0 |
| $A_2$ | 1 | — | 0 |
| $A_3$ | 1 | 1 | — |
Determine the ranking
Using the aggregate dominance matrix, identify which alternatives are dominated and determine the final ranking.
An alternative \(A_k\) outranks \(A_l\) when \(e_{kl}=1\).
An alternative \(A_l\) is dominated if there exists at least one \(A_k\) such that \(e_{kl}=1\) and no \(e_{lk}=1\).
Non-dominated alternatives form the kernel (best set).
| Alternative | Outranks | Is outranked by | Status |
|---|---|---|---|
| $A_1$ | None | $A_2, A_3$ | Dominated |
| $A_2$ | $A_1$ | $A_3$ | Dominated |
| $A_3$ | $A_1, A_2$ | None | Non-dominated (Kernel) |
Non-dominated alternative (Kernel): $A_3$
Final ranking: $A_3 \succ A_2 \succ A_1$
