Abstract A method is proposed for finding the numerical compensation on a multicriteria decision problem, after obtaining the decision by the minimum operator. This compensation depends upon the decision maker's personal utility function, which characterizes an individual's attitude toward risk. The method is based on the fact that when a final decision is obtained by the min-operatory there is no risk involved, i.e., the decision is taken under certainty, but when a compensation γ is allowed to reach the final decision, some of the objectives come under risk dependent on the value of γ. By uniformly increasing γ the total expected utility of all the objectives is calculated. The value of γ corresponding to maximum utility is taken as a good compensation. A numerical example is worked out to illustrate the procedure suggested.
[1]
H. Zimmermann.
DESCRIPTION AND OPTIMIZATION OF FUZZY SYSTEMS
,
1975
.
[2]
H. Zimmermann.
Fuzzy programming and linear programming with several objective functions
,
1978
.
[3]
R. L. Keeney,et al.
Decisions with Multiple Objectives: Preferences and Value Trade-Offs
,
1977,
IEEE Transactions on Systems, Man, and Cybernetics.
[4]
H. Zimmermann,et al.
Latent connectives in human decision making
,
1980
.
[5]
H. Zimmermann,et al.
On the suitability of minimum and product operators for the intersection of fuzzy sets
,
1979
.