A combined lexicographic average rank approach for evaluating uncertain multi-indicator matrices with risk metrics

Abstract

This chapter presents a combined approach for evaluating resource planning projects considering a multicriteria decision-making process. The approach is based on a multi-indicator matrix with three synthetic attributes that take into account several criteria such as (1) economic and financial elements (attribute: base ranking); (2) uncertainty propagation (attribute: probability); and (3) risk evaluation (attribute: compliance). The final evaluation is derived by using a combined approach based on a nonparametric aggregation rule using the concept of average rank for attributes 1 and 2; a simple procedure for score assignment for attribute3; and a lexicographic decision-making rule. In addition, a preliminary analysis of the alternatives is performed by using Hasse diagrams. An application to resource planning projects illustrates the proposed approach.