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MCDM Methods

Step-by-Step Algorithms

REGIME Method

Regime Method

1983 Edwin Hinloopen, Peter Nijkamp and Piet Rietveld 7 Steps

REGIME (Regime Method) is a multi-criteria decision-making (MCDM) method based on pairwise comparison of alternatives across criteria. It is particularly suitable when decision information is ordinal or qualitative, while it can also handle quantitative information.

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
Weights: $w_1=0.7279$ · $w_2=0.2009$ · $w_3=0.0712$ (Entropy method)
2

Superiority index

Formula

Compare two alternatives \(A_f\) and \(A_l\) criterion by criterion. The superiority index identifies the criteria for which alternative \(A_f\) is better than alternative \(A_l\).

\[ \widetilde{E}_{fl}=\left\{ j \mid A_f \text{ is superior to} A_l \text{ with respect to} C_j \right\} \]

For a benefit criterion, a higher value is preferred. Therefore, alternative \(A_f\) is superior to \(A_l\) when :

\[ x_{fj} \geq x_{lj} \]

For a cost criterion, a lower value is preferred. Therefore, alternative \(A_f\) is superior to \(A_l\) when :

\[ x_{fj} < x_{lj} \]

The set \(\widetilde{E}_{fl}\) contains the criteria on which \(A_f\) has a better performance than \(A_l\).

$A_f \backslash A_l$$A_1$$A_2$$A_3$
$A_1$—C₂ ∅
$A_2$C₁ C₃ —C₃
$A_3$C₁ C₂ C₃ C₁ C₂ C₃ —
3

Superiority identifier

Formula

The superiority identifier represents the total weight of the criteria in the superiority index.

\[ \widehat{E}_{fl}=\sum_{\substack{j=1\\j\in\widetilde{E}_{fl}}}^{n} w_j \]

\(w_j\) is the weight of criterion \(C_j\). Therefore, \(\widehat{E}_{fl}\) measures the importance of the criteria where \(A_f\) is superior to \(A_l\).

$A_f \backslash A_l$$A_1$$A_2$$A_3$
$A_1$—0.20090.0000
$A_2$0.7991—0.0712
$A_3$1.00001.0000—
4

Impacts matrix

Formula

Construct the impacts matrix by expressing the performance of each alternative for every criterion in ordinal form.

\[ R=[r_{ij}]_{m\times n} \]

\(r_{ij}\) represents the ordinal impact of alternative \(A_i\) with respect to criterion \(C_j\).

Convert the original performance values into ordinal ranks for each criterion. This matrix shows the relative standing of alternatives on every criterion.

Lower ordinal value=better performance (order 1=best). Tied alternatives receive the same rank. For cost criterion C₂, lower original value → lower ordinal (better).

Alternative$C_1$$C_2$$C_3$
$A_1$323
$A_2$231
$A_3$111
5

REGIME matrix

Formula

Compare alternatives \(A_f\) and \(A_l\) for every criterion. The REGIME matrix records whether \(A_f\) is better, equal, or worse than \(A_l\).

\[ E_{fl,j}=\begin{cases} +1, & r_{f,j}>r_{l,j}\\[6pt] 0, & r_{f,j}=r_{l,j}\\[6pt] -1, & r_{f,j} < r_{l,j} \end{cases} \]

\(+1\) means that \(A_f\) is superior to \(A_l\), \(0\) means equal performance, and \(-1\) means that \(A_f\) is inferior to \(A_l\).

\[ E_{fl}=(E_{fl,1},E_{fl,2},\ldots,E_{fl,n}) \]
Pair ($A_f$ vs $A_l$)$C_1$$C_2$$C_3$
$A_1$ vs $A_2$−1+1−1
$A_1$ vs $A_3$−1−1−1
$A_2$ vs $A_1$+1−1+1
$A_2$ vs $A_3$−1−10
$A_3$ vs $A_1$+1+1+1
$A_3$ vs $A_2$+1+10
6

Guide ndex

Formula

The guide index is the weighted sum of the elements of the REGIME vector.

\[ E'_{fl}=\sum_{j=1}^{n} w_j E_{fl,j} \]

A positive guide index indicates an overall preference for \(A_f\) over \(A_l\), while a negative value indicates a preference for \(A_l\) over \(A_f\).

$A_f \backslash A_l$$A_1$$A_2$$A_3$
$A_1$—−0.5982−1.0000
$A_2$0.5982—−0.9288
$A_3$1.00000.9288—
7

Ranking

Formula

1. Ranking of Alternatives by Superiority Identifier

The first ranking technique uses the superiority identifier \(\widehat{E}_{fl}\). The REGIME method compares the superiority identifiers of two alternatives.

\[ \widehat{E}_{fl} - \widehat{E}_{lf} \]

The difference between the two superiority identifiers determines which alternative is superior.

\[ \widehat{E}_{fl} - \widehat{E}_{lf} >0 \quad\Longrightarrow\quad A_f >A_l \]
\[ \widehat{E}_{fl} - \widehat{E}_{lf} < 0 \quad\Longrightarrow\quad A_l >A_f \]
\[ \widehat{E}_{fl} - \widehat{E}_{lf}=0 \quad\Longrightarrow\quad A_f\sim A_l \]

A positive difference indicates that alternative \(A_f\) is superior to \(A_l\). A negative difference indicates that \(A_l\) is superior to \(A_f\). A zero difference indicates indifference between the two alternatives.

2. Ranking of Alternatives by guide index

The second ranking technique uses the Guide Index \(E_{fl}\). It is calculated by multiplying the REGIME comparison value for each criterion by its corresponding criterion weight and then summing over all criteria.

\[ E'_{fl}=\sum_{j=1}^{n} E_{fl,j}\,w_j \]

where \(E'_{fl,j}\) represents the comparison of alternative \(A_f\) with alternative \(A_l\) for criterion \(C_j\), and \(w_j\) is the weight of criterion \(C_j\).

The guide index is calculated for each pair of alternatives. The resulting guide indices are then used to obtain the final ranking of the alternatives.

\[ E'_{fl}>0 \quad\Longrightarrow\quad A_f >A_l \]
\[ E'_{fl} < 0 \quad\Longrightarrow\quad A_l >A_f \]

A positive guide index indicates that \(A_f\) is preferred to \(A_l\), while a negative guide index indicates that \(A_l\) is preferred to \(A_f\).

Technique 1: Superiority identifier differences

Pair$\widehat{E}_{fl} - \widehat{E}_{lf}$Result
$A_1$ vs $A_2$−0.5982$A_2 >A_1$
$A_1$ vs $A_3$−1.0000$A_3 >A_1$
$A_2$ vs $A_3$−0.9288$A_3 >A_2$

Technique 2: Guide index

Pair$E'_{fl}$Result
$A_1$ vs $A_2$−0.5982$A_2 >A_1$
$A_1$ vs $A_3$−1.0000$A_3 >A_1$
$A_2$ vs $A_3$−0.9288$A_3 >A_2$
Both techniques agree: $A_3 >A_2 >A_1$
Final ranking: $A_3 \succ A_2 \succ A_1$

REGIME Algorithm Flowchart