Methodology
Decision-making often involves evaluating multiple alternatives based on various criteria.
The PROMETHEE (Preference Ranking Organization METHod for Enrichment Evaluations) method offers a robust approach to handle such multi-criteria decision analysis (MCDA) challenges. Central to this method is the concept of pairwise comparisons, which provides a structured framework for evaluating alternatives.
PROMETHEE is a multi-criteria decision-making method designed to rank and evaluate a set of alternatives based on multiple criteria. Developed in the early 1980s by Professor Jean-Pierre Brans, this method has since become a popular choice for addressing complex decision-making problems.
Pairwise comparison involves comparing two alternatives at a time to determine which one is preferred or to what degree one is preferred over the other. In the context of the PROMETHEE method, these comparisons play a crucial role in determining preference functions.
At the heart of PROMETHEE lies the concept of preference functions. These functions quantify the preference of one alternative over another based on a specific criterion. The method offers several types of preference functions, allowing decision-makers to choose the most suitable one for their problem.
Once preferences are determined, the method calculates two flows for each alternative:
• Positive Flow (Φ+): Represents how an alternative is preferred over all other alternatives.
• Negative Flow (Φ-): Represents how other alternatives are preferred over the given alternative.
The net flow is the difference between the positive and negative flows. It provides a global ranking of the alternatives. The alternative with the highest net flow is generally considered the best choice.
The PROMETHEE method offers a structured and transparent approach to multi-criteria decision-making. With its combination of simplicity, flexibility, and comprehensiveness, it stands as a valuable tool for organizations seeking to navigate the complexities of decision-making. The concept of pairwise comparisons further enhances its robustness, ensuring detailed and nuanced evaluations of alternatives.
Interested in delving deeper into the PROMETHEE method and its potential benefits for your organization? Connect with us for insights or to arrange a consultation.