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MCDM Methods

Step-by-Step Algorithms

IDOCRIW Method

Integrated Determination of Objective Criteria Weights

2016 Zavadskas and Podvezko 11 Steps

IDOCRIW (Integrated Determination of Objective Criteria Weights) is an objective MCDM weighting method that combines the information provided by different objective weighting techniques to obtain more reliable criterion weights. IDOCRIW integrates the Entropy Weight Method and the CILOS method. It considers both the variation/information content of the criteria and their relative impact/loss.

Video Demonstration

Step-by-Step Algorithm

Calculated cell
Source cells in formula
1

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$C_1$$C_2$$C_3$
$A_1$102030
$A_2$152535
$A_3$251535
Criterion type: C₁ Benefit C₂ Cost C₃ Benefit
2

Normalize the decision matrix

Formula

The normalized value is calculated as :

$$ r_{ij}=\frac{x_{ij}} {\displaystyle\sum_{i=1}^{m}x_{ij}} $$

\(r_{ij}\) indicates the normalized value of the decision matrix of ith alternative in jth criteria.

Alternative$C_1$$C_2$$C_3$
$A_1$0.20000.33330.3000
$A_2$0.30000.41670.3500
$A_3$0.50000.25000.3500
3

Calculate the Entropy value

Formula

The entropy value of criterion \(j\) is calculated as :

$$ e_j=-k \sum_{i=1}^{m} r_{ij}\ln(r_{ij}) $$

Where :

$$ k=\frac{1}{\ln(m)} $$

If \(r_{ij}=0\), the term \(r_{ij}\ln(r_{ij})\) is considered equal to \(0\).

The entropy value generally satisfies :

$$ 0\leq e_j\leq1 $$

With $m=3$: $k=1/\ln(3)=0.9102$

Metric$C_1$$C_2$$C_3$
Entropy ($e_j$)0.93720.98080.9976
4

Weights of criteria (ENTROPY)

Formula

The degree of diversification of criterion \(j\) is :

$$ d_j=1-e_j $$

The entropy weight of criterion \(j\) is calculated as :

$$ w_j=\frac{d_j} {\displaystyle\sum_{j=1}^{n}d_j} $$

The resulting weights satisfy :

$$ \sum_{j=1}^{n}w_j=1 $$
Metric$C_1$$C_2$$C_3$
Entropy ($e_j$)0.93720.98080.9976
Diversity ($d_j$)0.06280.01920.0024
Weight ($w_j^{E}$)0.74410.22750.0284
Entropy weights: $w_1^{E}=0.7441,\; w_2^{E}=0.2275,\; w_3^{E}=0.0284$
5

Construct the transformed matrix

Formula

Convert all cost criteria into benefit criteria .

$$ x'_{ij}=\begin{cases} x_{ij}, & \text{if criterion}j\text{ is a benefit criterion}, \\[10pt] \dfrac{\min_i(x_{ij})}{x_{ij}}, & \text{if criterion}j\text{ is a cost criterion.} \end{cases} $$

The transformed matrix is :

$$ X'=\begin{bmatrix} x'_{11}&x'_{12}&\cdots&x'_{1n}\\ x'_{21}&x'_{22}&\cdots&x'_{2n}\\ \vdots&\vdots&\ddots&\vdots\\ x'_{m1}&x'_{m2}&\cdots&x'_{mn} \end{bmatrix} $$

C₁ and C₃ are benefit (unchanged). C₂ is cost: $\min(C_2)=15$, so $x'_{i2}=15/x_{i2}$.

Alternative$C_1$ (Benefit)$C_2$ (Cost→Benefit)$C_3$ (Benefit)
$A_1$100.750030
$A_2$150.600035
$A_3$251.000035
6

Normalize the transformed matrix

Formula

Normalize every column using the column sum.

$$ r_{ij}=\frac{x'_{ij}} {\displaystyle\sum_{i=1}^{m}x'_{ij}} $$

The normalized matrix is :

$$ R=[r_{ij}]=\begin{bmatrix} r_{11}&r_{12}&\cdots&r_{1n}\\ r_{21}&r_{22}&\cdots&r_{2n}\\ \vdots&\vdots&\ddots&\vdots\\ r_{m1}&r_{m2}&\cdots&r_{mn} \end{bmatrix} $$
Alternative$C_1$$C_2$$C_3$
$A_1$0.20000.31910.3000
$A_2$0.30000.25530.3500
$A_3$0.50000.42550.3500
7

Square matrix

Formula

Find the maximum value for every criterion.

$$ a_j=\max_i(r_{ij}) $$

If alternative \(k_j\) contains the maximum value of criterion \(j\), select that entire row to build the square matrix.

$$ A=\begin{bmatrix} r_{k_1 1}&r_{k_1 2}&\cdots&r_{k_1 n}\\ r_{k_2 1}&r_{k_2 2}&\cdots&r_{k_2 n}\\ \vdots&\vdots&\ddots&\vdots\\ r_{k_n 1}&r_{k_n 2}&\cdots&r_{k_n n} \end{bmatrix} $$

The diagonal elements satisfy :

$$ a_{jj}=\max_i(r_{ij}) $$
Metric$C_1$$C_2$$C_3$
Max ($a_j$)0.50000.42550.3500
Source ($k_j$)$A_3$$A_3$$A_2$

The square matrix is formed by taking row $A_3$ for $C_1$ and $C_2$, and row $A_2$ for $C_3$.

Row (criterion)$C_1$$C_2$$C_3$
$C_1$ (from $A_3$)0.50000.42550.3500
$C_2$ (from $A_3$)0.50000.42550.3500
$C_3$ (from $A_2$)0.30000.25530.3500
8

Relative impact loss matrix

Formula
$$ P=[p_{ij}], \qquad i,j=1,2,\ldots,n $$

Where :

$$ p_{ij}=\frac{a_{jj}-a_{ij}} {a_{jj}} $$

The diagonal elements are :

$$ p_{ii}=0 $$

Thus, the relative impact loss matrix is :

$$ P=\begin{bmatrix} 0 & p_{12} & \cdots & p_{1n}\\ p_{21} & 0 & \cdots & p_{2n}\\ \vdots & \vdots & \ddots & \vdots\\ p_{n1} & p_{n2} & \cdots & 0 \end{bmatrix} $$
$P$$C_1$$C_2$$C_3$
$C_1$000
$C_2$000
$C_3$0.40000.40000
9

Weights system matrix

Formula

Construct the weights system matrix.

$$ F=[f_{ij}] $$

where :

$$ f_{ii}=-\sum_{j=1}^{n} p_{ij} $$

and

$$ f_{ij}=p_{ij}, \qquad i \ne j. $$

Hence,

$$ F=\begin{bmatrix} -\displaystyle\sum_{j=1}^{n}p_{1j} & p_{12} & \cdots & p_{1n} \\ p_{21} & -\displaystyle\sum_{j=1}^{n}p_{2j} & \cdots & p_{2n} \\ \vdots & \vdots & \ddots & \vdots \\ p_{n1} & p_{n2} & \cdots & -\displaystyle\sum_{j=1}^{n}p_{nj} \end{bmatrix} $$
$F$$C_1$$C_2$$C_3$
$C_1$-0.400000
$C_2$0-0.40000
$C_3$0.40000.40000
10

Weights of criteria (CILOS)

Formula

The objective weights are obtained by solving the following homogeneous system of equations :

$$ Fq=0 $$

subject to the normalization constraint :

$$ \sum_{j=1}^{n} q_j=1 $$

and the non-negativity constraint :

$$ q_j \ge 0, \qquad j=1,2,\ldots,n. $$

The resulting objective weight vector is :

$$ q=\begin{bmatrix} q_1\\ q_2\\ \vdots\\ q_n \end{bmatrix} $$

where each \(q_j\) is the objective weight of criterion \(j\).

CriterionCILOS Weight ($q_j$)
$C_1$0
$C_2$0
$C_3$1.0000
11

Aggregate weights

Formula

The Entropy and CILOS weights are combined to obtain the final integrated criterion weights :

$$ w_j=\frac{w_j^{E}q_j} {\displaystyle\sum_{j=1}^{n}w_j^{E}q_j} $$

where \(w_j^{E}\) is the Entropy weight and \(q_j\) is the CILOS weight.

The final IDOCRIW weights satisfy :

$$ \sum_{j=1}^{n}w_j=1 $$
CriterionIDOCRIW Weight ($w_j$)
$C_1$0
$C_2$0
$C_3$1.0000
IDOCRIW weights: $w_1=0,\; w_2=0,\; w_3=1.0000$
Check: $\sum_{j=1}^{3}w_j=0 + 0 + 1.0000=1.0000\;\checkmark$

IDOCRIW Algorithm Flowchart