The key points from this module are:
Developed by Saaty, AHP is developing a numerical score to rank each decision alternative based on how well each alternative meets the decision-maker's criteria.
TOPSIS method technique of order preference by similarity to ideal solution considers three types of attributes:
Qualitative benefit attributes
Quantitative benefit attributes
A product mix is the combination of different products ordered by a company for sale to consumers.
A decision tree is a graphical representation of the various alternative courses of action.
The maximax rule: criterion takes an optimistic view that everything will turn out right regardless of the decision taken
The maximin rule: a risk-averse decision-maker will use the conservative maximin criterion, which often leads to doing nothing.
The minimax rule: The minimax criterion, also called minimax regret- can be considered another conservative or pessimistic decision rule.
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