Multiple Criteria Decision Making Based on VIKOR for Productive Economic Endeavors Distribution Problem

Abstract

The office of social affairs has provided the productive economic endeavors (PEE) program that empowers increasing the income of micros, small and medium enterprises (MSMEs) to build harmonious social relationships among communities. However, in the selection process for this program recipient so far, an officer evaluated potential MSMEs based on requirement data conventionally so that it is very vulnerable to personal subjectivity problems. Therefore, we designed a Multiple Criteria Decision-Making (MCDM) model to apply to this decision-making process. The model integrated the AHP method with the VIKOR method. First, based on the professional decision-maker judgment in evaluating a pairwise criteria comparison, the AHP determined the acceptable criteria weights automatically, and the VIKOR then utilized them to rank alternatives based on the values of utility and regret measures. After checking the acceptability advantage and stability in decision-making, the results showed that alternative U5 and U8 were the compromise solutions representing the closeness to the ideal solution. Finally, this MCDM model is a feasible and suitable tool for dealing with this decision-making problem.