A hybrid decision model for the selection of capital equipment using AHP in conjoint analysis under fuzziness

P. Parthiban, M. Punniyamoorthy, P. Mathiyalagan and P.D.D. Dominic

International Journal of Enterprise Network Management, 2009, vol. 3, issue 2, 112-129

Abstract: Strategic level decision-making is very complex in nature because it consists of numerous variables and most of which cannot be quantified. These decisions are assisted based on the information available, which are both qualitative and quantitative. When comparing of different alternatives, the decision-maker should consider both the tangible and intangible benefits of different alternatives, i.e., fuzziness. The decision may be wrong if one considers only the tangible benefits of the alternatives. So, the intangible benefits should also be considered while making the decision. Generally, it is difficult to quantify these intangible benefits, because they are often fuzzy, complicated and subjective. So, there is a need of a methodology to evaluate both tangible and intangible benefits simultaneously. The conjoint analysis is applied to arrive at the relative weightage for the attributes and the part worth values for the levels using techniques like dummy regression, linear programming and to find an alternative method to arrive at the relative weightage and part worth values in conjoint analysis using analytic hierarchy process (AHP). Validation of the model was done through a real-time example.

Keywords: conjoint analysis; decision making; dummy regression; linear programming; analytical hierarchy process; AHP; modelling; capital equipment selection; intangible benefits. (search for similar items in EconPapers)
Date: 2009
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.inderscience.com/link.php?id=29006 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ids:ijenma:v:3:y:2009:i:2:p:112-129

Access Statistics for this article

More articles in International Journal of Enterprise Network Management from Inderscience Enterprises Ltd
Bibliographic data for series maintained by Sarah Parker ().