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MCDM Methods

Step-by-Step Algorithms

SAW Method

Simple Additive Weighting

1954 Churchman and Ackoff 4 Steps

SAW (Simple Additive Weighting) or WSM (Weighted Sum Model) is one of the oldest and simplest multi-criteria decision-making (MCDM) methods. It calculates a weighted sum of normalized performance scores for each alternative. The alternative with the highest total score is ranked best. It is easy to understand and widely used as a baseline method.

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: $w_1=0.7279$ · $w_2=0.2009$ · $w_3=0.0712$ (Given)
2

Normalize the decision matrix

Formula

Normalize the criterion values so that all criteria become comparable and a higher normalized value indicates better performance.

For benefit criteria :

\[ r_{ij}=\frac{x_{ij}} {\displaystyle\max_i x_{ij}} \]

For cost criteria :

\[ r_{ij}=\frac{\displaystyle\min_i x_{ij}} {x_{ij}} \]

\(r_{ij}\) is the normalized value of alternative \(A_i\) for criterion \(C_j\).

C₁ and C₃ are benefit criteria. C₂ is a cost criterion.

Alternative$C_1$$C_2$$C_3$
$A_1$0.40000.75000.8571
$A_2$0.60000.60001.0000
$A_3$1.00001.00001.0000
3

Calculate the weighted normalized decision matrix

Formula

Multiply each normalized value by the corresponding criterion weight :

$$ v_{ij}=w_jr_{ij} $$

Where \(w_j\) is the weight of criterion \(C_j\).

$$ \sum_{j=1}^{n}w_j=1, \qquad w_j\geq0 $$

The resulting matrix is the weighted normalized decision matrix :

$$ V=[v_{ij}]_{m\times n} $$

Using weights: $w_1=0.7279$, $w_2=0.2009$, $w_3=0.0712$

Alternative$C_1$$C_2$$C_3$
$A_1$0.29120.15070.0610
$A_2$0.43670.12050.0712
$A_3$0.72790.20090.0712
4

Total score and ranking

Formula

Calculate the overall score of each alternative by summing all its weighted normalized criterion values.

\[ S_i=\sum_{j=1}^{n} w_jr_{ij} \]

\(S_i\) is the overall SAW score of alternative \(A_i\).

Rank the alternatives according to their SAW scores in descending order.

\[ S_i>S_k \quad\Longrightarrow\quad A_i >A_k \]
AlternativeSAW Score ($S_i$)
$A_1$0.5029
$A_2$0.6285
$A_3$1.0000
SAW scores: $S_3=1.0000 >S_2=0.6285 >S_1=0.5029$
Final ranking: $A_3 \succ A_2 \succ A_1$

SAW Algorithm Flowchart