An Alternative to the Electre Method

Author:Catalin Angelo Ioan, Gina Ioan
Pages:119-126
SUMMARY

The paper proposes an alternative of the Electre method consisting in replacing the concordance and discordance coefficients with continuous utility functions

 
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ISSN: 2067 9211 Performance and Risks in the European Economy
119
An Alternative to the Electre Method
Cătălin Angelo Ioan1, Gina Ioan2
Abstract: The paper proposes an alternative of the Electre method consisting in replacing the concordance and
discordance coefficients with continuous utility functions.
Keywords: Electre; concordance; discordance
JEL Classification: E17; E27
1. Introduction
The ELECTRE method consists in the existence of a number of n alternatives for a decident: V1,
V2,...,Vn. Let us also consider a number of m criteria C1, C2,...,Cm that have each a coefficient of
importance (usually subjectively determined) k1, k2,...,km. For each pair (Vi,Cj) we set a numerical
value vij (if it is a qualitative appreciation of the kind: weak, good, very good etc. we convert it to
hierarchy numbers). The problem lies in determining the optimal action variant.
The algorithm consists in first establishing the nature of the method (maximizing or minimizing).
It is important to take into account, at this step, that all the criteria lead to the sa me nature of the
problem. Thus, if the problem is, for example, maximization (minimization), and one or more criteria
aim at minimizing (maximizing), the vij values corresponding to the criterion Cj - in question with the
(-vij) values will be replaced.
We then normalize the importance coefficients by the relation: i=
i
m
p
p1
k
k
, i=
1,m
and we therefore
have:
m
i
i1
=1.
Then we shall determine the utilities Uij corresponding to the pairs (Vi,Cj) as follows:
for the maximization problem: Uij=
ij kj
k 1,...,n
kj kj
k 1,...,n
k 1,...,n
v min v
max v min v
;
1. Associate Professor, PhD, Danubius University of Galati, Department of Economics, Address: 3 Galati Blvd., Galati
800654, Romania, Tel.: +40372361102, Corresponding author: catalin_angelo_ioan@univ-danubius.ro.
2 Senior Lecturer, PhD, Danubius University of Galati, Department of E conomics, Address: 3 Galati Blvd., Galati 800654,
Romania, Tel.: +40372361102, Corresponding author: ginaioan@univ-danubius.ro.

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