W_4_Applying Noncompensatory Models_Haitham


1.  Problem Definition

Further to the previous W3 blog in which Grid Analysis had been applied to figure out the alternative in moving to new place.

2.  Development of Feasible Alternatives

Investment options are:

  1. Town-house
  2. Apartment
  3.  House

 

3.  Development of the Outcome for Alternative 

  1. Price
  2. Location
  3. Demand
  4. Rent price

 

4.  Selection of Criteria

 

  Town-House Apartment House
Price 100,000 R.O 80,000 R.O 150,000 R.O
Location Al Khoudh

(6th District)

Al Khuwair

(Center)

Ansab

(Semi Center)

Demand High High Average
Rent price/year 12,000 R.O 13,200 R.O 7,200 R.O

 

There are four noncompesatory models to be tested:

a. Dominance

 

 

Attribute

 

Paired Comparison

 

Town-House Vs Apartment Town-House Vs House House Vs

Apartment

Price Worse Better Better
Location Worse Better Better
Market / Demand Equal Better Better
Rent price/year Worse Better Better
Dominance? No Yes Yes

 

b. Satisficing

 

 

Attribute

 

Feasible Ranges for Satisfactions
Min Acceptable

Value

Max Acceptable

Value

Unacceptable

Alternative

Price 80,000 R.O None
Location Al Khoudh

(6th District)

Al Khuwair

(Center)

None
Market / Demand Better None
Rent price/year 12,000 R.O 13,200 R.O None

 

C. Disjunctive Resolution

A-Result of Paired Comparison
Location > Price (Location is more important than Price)
Demand > Price (Demand is more important than Price)
Rental Price > Price (Rental Price is more important than Price)
Location > Demand (Location is more important than Demand)
Location > Rental Price (Location is more important than Rental Price)
Rental Price > Demand (Rental Price is more important than Demand)

 

B- Attribute
Price 0
Location 3
Demand 1
Rental Price 2

 

d. Lexicography

Attribute Ranka Alternative Rankb
Price 0 Apartment > Town house > House
Location 3 Apartment > Town house > House
Demand 1 Apartment = Town house > House
Rental Price 2 Apartment > Town house > House

 

 

5.  Analysis and Comparison of the Alternative.

  • Dominance: is useful only for excluding one of lower alternative, which is House.
  • Satisficing: when the alternatives are acceptable this tool become not good enough for decision-making.
  • Disjunctive Resolution: Best attribute is Apartment, as evaluated above.
  • Lexicography: Apartment will be the best choice.

6.  Selection of the Preferred Alternative.

The disjunctive resolution has shown as another method in eliminating the best alternatives when using the 4 models

7. Performance Monitoring and the Post Evaluation of Result.

As evaluated and weighted above the disjunctive resolution method has brought Apartment as the best alternative.

References:

  1. Anonymous (2009, FEB). Grid Analysis – Decision Making Techniques from Mind Tools. Retrieved July 1, 2014, from http://xenophilius.wordpress.com/2009/02/06/grid-analysis-decision-making-techniques-from-mind-tools/
  2. Tools, m. (n.d.). Decision Matrix Analysis. Retrieved July 1, 2014,from

http://www.mindtools.com/pages/article/newTED_03.htm

    3. The University of Kent (n.d.). Decision Making Skills. Retrieved July 1, 2014,        from http://www.kent.ac.uk/careers/sk/decisionmaking.htm

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One thought on “W_4_Applying Noncompensatory Models_Haitham

  1. Nice work again this week, Haitham!!! Looks to me like you are starting to understand how to use our 7 step process more effectively?

    For your W5 blog posting, what I suggest you do is to experiment with the COMPENSATORY models……. While the outcomes are often the same, by getting a quantitative rather than qualitative score, it will help you understand whether the options chosen are really that good or not.

    Also, if you look at what Al Moataz has done, the direction I would like to see you going with this (in order to generate a favorable return on training investment) is for you to apply this concept in your working environment. So while there is nothing wrong with your chosen case study, how will it help us fulfill our second objective, which is to help pay for the cost of this training by generating a favorable return by having you improve your work processes?

    Looking forward to seeing more 4 and 5 star postings in the remaining weeks!!!

    BR,
    Dr. PDG, Jakarta

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