Sensitivity Analysis by SIMUS: The IOSA Procedure

Nolberto Munier
Additional contact information
Nolberto Munier: INGENIO, Polytechnic University of Valencia

Chapter Chapter 8 in Strategic Approach in Multi-Criteria Decision Making, 2024, pp 155-168 from Springer

Abstract: Abstract This chapter addresses a fundamental subject: sensitivity analysis. It is not only a checking procedure but also a tool, which allows the DM to answer questions from stakeholders as well as a way to study different attitudes; without it a MCDM process is incomplete. The main reason for its use lies in the uncertainty of data, and therefore, a test must be performed to verify how a solution holds when certain parameters change. In this book, sensitivity analysis is performed in a different and novel way, compared as it is done nowadays because there are non-subjective assumptions, and it is based on what is believed to be a more rational approach, by using economics principles such as criteria marginal values instead of subjective criteria weights. The advantage over the lack of effectiveness and transparency of the actual procedure is that it permits not only determining when a ranking changes—as is the information given by all methods—but also getting a quantitative measure on the effect of these changes. It also provides a graphic display of how the objective value increases or decreases according to increments or decrements in some criteria. Another advantage is that it allows analysis of how exogenous factors, related somehow with criteria, may affect the best selection in the future, during operation of the alternative selected. Due to this, it is possible to compute the value of diverse risks related to the potential changes of these exogenous factors.

Keywords: Sensitivity analysis; SIMUS; IOSA; Utility curves; Reports to stakeholders (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:isochp:978-3-031-44453-1_8

Ordering information: This item can be ordered from
http://www.springer.com/9783031444531

DOI: 10.1007/978-3-031-44453-1_8

Access Statistics for this chapter

More chapters in International Series in Operations Research & Management Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().