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MCDM Methods

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ITARA Method

Indifference Threshold-Based Attribute Ratio Analysis

2019 Mohammad Ali Hatefi 8 Steps

ITARA (Indifference Threshold-Based Attribute Ratio Analysis) is an objective criteria-weighting method for MCDM. It determines the importance of criteria by analyzing the relative differences between alternatives and identifying an indifference threshold below which differences in criterion performance are considered insignificant.

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.

For each criterion $C_j$, determine the indifference threshold $IT_j$. $IT_j$ should be less than the standard deviation of criterion $j$ ($\sigma_j$):

$$IT_j < \sigma_j$$
Alternative$C_1$$C_2$$C_3$
$A_1$102030
$A_2$152535
$A_3$251535
Criterion type: C₁ Benefit C₂ Cost C₃ Benefit
Std. deviation (σⱼ): $\sigma_1=6.2361$ · $\sigma_2=4.0825$ · $\sigma_3=2.3570$
Indifference threshold (ITⱼ): $IT_1=5$ · $IT_2=3$ · $IT_3=2$ ($IT_j < \sigma_j\;\checkmark$)
2

Normalized decision matrix

Formula

Normalize the criterion values using :

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

Normalized indifference threshold NIT

Formula

The normalized indifference threshold is :

$$ NIT_j=\frac{IT_j} {\displaystyle\sum_{i=1}^{m}x_{ij}} $$
Metric$C_1$$C_2$$C_3$
$IT_j$532
$NIT_j$0.10000.05000.0200
4

Sorted normalized decision matrix

Formula

For each criterion \(j\), sort the normalized values in ascending order :

$$ \beta_{1j}\leq\beta_{2j}\leq\cdots\leq\beta_{mj} $$

where \(\beta_{ij}\) represents the ordered normalized value.

Rank$C_1$$C_2$$C_3$
1st0.20000.25000.3000
2nd0.30000.33330.3500
3rd0.50000.41670.3500

C₃ has a tie at rank 2nd–3rd: both $A_2$ and $A_3$ have $\alpha_{ij}=0.3500$.

5

Calculate the distance between adjacent values

Formula

Calculate the distance between each pair of adjacent ordered values :

$$ \gamma_{ij}=\beta_{i+1,j}-\beta_{ij} $$

for :

$$ i=1,2,\ldots,m-1 $$

The value \(\gamma_{ij}\) represents the dispersion between two consecutive alternatives for criterion \(j\).

Gap$C_1$$C_2$$C_3$
$\gamma_{1j}$0.10000.08330.0500
$\gamma_{2j}$0.20000.08340.0000
6

Calculate the distance between $\gamma_{ij}$ and NIT

Formula

Compare each adjacent distance \(\gamma_{ij}\) with the normalized indifference threshold \(NIT_j\) :

$$ \delta_{ij}=\begin{cases} \gamma_{ij}-NIT_j, & \gamma_{ij}>NIT_j \\[6pt] 0, & \gamma_{ij}\leq NIT_j \end{cases} $$

Only differences greater than the indifference threshold contribute to the criterion weight.

Therefore, differences that are considered insignificant by the decision maker are assigned a value of zero.

$NIT_1=0.1000$, $NIT_2=0.0500$, $NIT_3=0.0200$

Gap$C_1$$C_2$$C_3$
$\delta_{1j}$00.03330.0300
$\delta_{2j}$0.10000.03340
7

Calculate the attribute adjustment value $v_j$

Formula

Sum all meaningful differences for each criterion :

$$ v_j=\left( \sum_{i=1}^{m-1} \delta _{ij}^{p} \right)^{1/p} $$

A larger \(v_j\) indicates greater meaningful dispersion in criterion \(j\).

Using $p=1$ (Manhattan distance): $v_j=\sum_{i=1}^{m-1}\delta_{ij}$

CriterionAdjustment Value ($v_j$)
$C_1$0.1000
$C_2$0.0667
$C_3$0.0300
8

Weights of criteria

Formula

Normalize the attribute adjustment values to obtain the final ITARA weights :

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

The weights satisfy

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

and

$$ w_j\geq0 $$
CriterionITARA Weight ($w_j$)
$C_1$0.5084
$C_2$0.3391
$C_3$0.1525
ITARA weights: $w_1=0.5084 >w_2=0.3391 >w_3=0.1525$
Check: $\sum_{j=1}^{3}w_j=0.5084 + 0.3391 + 0.1525=1.0000\;\checkmark$

ITARA Algorithm Flowchart