--- lang: en-GB title: "Multi-criteria decision analysis" output: rmarkdown::html_vignette: toc: true toc_depth: 2 vignette: > %\VignetteIndexEntry{Multi-criteria decision analysis} %\VignetteEngine{knitr::rmarkdown} %\VignetteEncoding{UTF-8} --- ```{r setup, include = FALSE} knitr::opts_chunk$set(collapse = TRUE, comment = "#>") library(surveyframe) library(knitr) set.seed(2026) has_ggplot <- requireNamespace("ggplot2", quietly = TRUE) knitr::opts_chunk$set(fig.width = 7, fig.height = 4.2, dpi = 96) ``` ```{=html} ``` ## What this vignette covers Multi-criteria decision analysis ranks a set of alternatives against multiple criteria that pull in different directions. surveyframe treats it the same way it treats any other analysis: the method, its inputs, and the roles they play are declared in the instrument before data is collected, and the analysis is the execution of that declaration. The worked example is a hotel choosing between 5 suppliers on 4 criteria. It ships with the package, so every number below is reproducible. ```{r load} demo <- read_sframe(system.file("extdata", "hotel_supplier_mcdm.sframe", package = "surveyframe")) responses <- utils::read.csv( system.file("extdata", "hotel_supplier_mcdm_responses.csv", package = "surveyframe"), stringsAsFactors = FALSE ) c(respondents = nrow(responses), criteria = 4, suppliers = 5) ``` ## Where the numbers come from An MCDM result needs two things: a performance matrix saying how each alternative scores on each criterion, and a weight vector saying how much each criterion matters. They can come from different places, and being explicit about which is the difference between a defensible result and a plausible-looking one. This instrument declares three sources at once, so the example exercises all of them. ```{r sources, echo = FALSE} kable( data.frame( Source = c("Pairwise comparison", "Constant sum", "Rated matrix", "Researcher supplied"), Item = c("crit_pairs", "crit_points", "rate_service and 3 more", "declared in the plan block"), Provides = c("Criterion weights", "Criterion weights", "Performance matrix", "Performance matrix"), How = c("Respondents judge each pair on the Saaty 1 to 9 scale", "Respondents divide 100 points across the criteria", "Respondents rate every supplier on every criterion", "Audited figures the researcher enters directly"), check.names = FALSE, stringsAsFactors = FALSE ), row.names = FALSE, align = c("l", "l", "l", "l"), caption = "The 4 declared input sources in the worked example." ) ``` Each result records which source it used, so a report can say where its numbers came from, which saves a reader from assuming. ## Criterion weights from pairwise judgements The first block asks what weight each criterion carries. Respondents compared every pair of criteria, and AHP turns those judgements into weights. ```{r ahp} results <- run_analysis_plan(responses, demo, plots = has_ggplot) ahp <- results[["RQ1"]] kable(ahp$table, row.names = FALSE, caption = "Criterion weights derived from pairwise judgements.") ``` Pairwise judgements can contradict each other. If service beats price, and price beats delivery, then service ought to beat delivery by roughly the product of the two. The consistency ratio measures how far the judgements depart from that. ```{r consistency} round(ahp$cr, 4) ``` Saaty's convention treats a consistency ratio below 0.10 as acceptable. This one is well inside it. A ratio above 0.10 should be reported alongside the result, since it still yields a usable weight set. `options$cr_filter = TRUE` will drop individual respondents above the threshold before aggregation if a study has pre-declared that rule. ```{r ahp-plot, fig.alt = "Bar chart of the four criterion weights derived from pairwise comparisons, with service carrying the largest weight and delivery the smallest.", eval = has_ggplot} ahp$plot ``` ## Ranking suppliers on audited figures The second block ranks the suppliers using a performance matrix the researcher supplies, combined with the weights the respondents produced. This is the common hybrid: measured facts about the alternatives, weighted by the people who will live with the decision. ```{r topsis-supplied} audited <- results[["RQ2"]] kable(audited$table, row.names = FALSE, caption = paste("TOPSIS ranking on audited figures, weighted by", "collected judgements.")) c(weights = audited$weights_source, matrix = audited$matrix_source) ``` Note the `criteria_types` this block declares: service and location are `benefit` criteria where more is better, while price and delivery time are `cost` criteria where less is better. Getting that wrong silently inverts the ranking, which is why the instrument declares it and surveyframe reads it from there. ## Ranking suppliers on collected ratings The third block answers a different question with the same method: which supplier the staff rate best, where the first asked which one the audited figures favour. The performance matrix is built from respondents' ratings, and the weights come from the constant-sum question this time, where the first ranking used the pairwise one. ```{r topsis-rated} rated <- results[["RQ3"]] kable(rated$table, row.names = FALSE, caption = paste("TOPSIS ranking on staff ratings, weighted by the", "constant-sum question.")) ``` The two rankings disagree, and that is the useful part. Comparing them is a finding in its own right, and it belongs in the write-up. ```{r compare, echo = FALSE} cmp <- merge( audited$table[, c("Alternative", "Rank")], rated$table[, c("Alternative", "Rank")], by = "Alternative", suffixes = c("_audited", "_rated") ) cmp <- cmp[order(cmp$Rank_audited), ] kable(cmp, row.names = FALSE, col.names = c("Supplier", "Rank on audited figures", "Rank on staff ratings"), caption = "The same method, two declared input sources, two answers.") ``` ### A trap worth naming All 4 criteria in the rated block are declared `benefit`, including price. That is correct here only because the question asked about **value for money**, where a higher rating is better. Had it asked respondents to rate price directly, a higher rating would mean more expensive and the criterion would be a `cost`. Nothing in the data distinguishes those two cases. The wording of the question does, and the declaration has to match it. This is the single easiest way to produce a confident, precise, and completely inverted ranking. ## How much do the weights matter? A ranking produced from collected weights inherits their uncertainty. Before reporting a winner, it is worth asking how much of that result survives a small change in the weights. ```{r sensitivity} sens <- sensitivity_analysis( x = matrix(c(4.1, 3.0, 210, 36, 3.6, 4.5, 180, 48, 4.8, 2.5, 260, 24, 3.9, 4.0, 150, 72, 4.4, 3.8, 230, 30), nrow = 5, byrow = TRUE), weights = audited$weights, criteria_types = c("benefit", "benefit", "cost", "cost"), method = "topsis", alternatives = c("Alpha", "Basilica", "Coral", "Dhoni", "Equator"), criteria = c("service", "location", "price", "delivery") ) sens ``` Each criterion's weight is nudged up and down by 5 percent, renormalised, and the ranking is recomputed. `rho` is the rank correlation with the original ranking, and `top_changed` records whether the leading alternative changed. ```{r sensitivity-table} kable(as.data.frame(sens), row.names = FALSE, caption = "Ranking stability under a 5 percent change in each weight.") ``` ```{r sensitivity-plot, fig.alt = "Bar chart of rank correlation for each criterion perturbed up and down, against a dashed reference line at one marking an unchanged ranking.", eval = has_ggplot} plot(sens) ``` This example is worth reading closely, because it is the awkward case. Four of the 8 perturbations changed the ranking, so `stable` is `FALSE`. But `top_changed` is `FALSE` throughout: the order shuffles among the middle suppliers while Equator stays first under every nudge. That distinction is the whole point of running this. "Equator ranks first, and that holds under a 5 percent change in any single weight" is a defensible claim. "The ranking is Equator, Coral, Basilica, Alpha, Dhoni" is not, because positions 2 to 5 move. Reporting the full ranking as though it were as solid as the winner would overstate what the data supports. A result where `top_changed` is `TRUE` anywhere deserves a stronger caveat still, and one where `stable` is `TRUE` throughout can be reported as robust to the weights. ## Which criteria drive the others The criteria depend on each other. Delivery speed and price move together, and service quality may drive both. DEMATEL asks respondents how strongly each factor influences each other factor and separates the causes from the effects. ```{r dematel} dematel <- results[["RQ4"]] kable(dematel$table, row.names = FALSE, caption = "DEMATEL cause and effect classification.") ``` The prominence column measures how involved a criterion is in the system overall, and the relation column separates the drivers from the driven. A criterion with a positive relation value influences others more than it is influenced. ```{r dematel-plot, fig.alt = "Influence map plotting prominence against relation for the four criteria, separating causal drivers above the axis from affected criteria below it.", eval = has_ggplot} dematel$plot ``` Note that the influence question uses a different scale from the AHP one. AHP reads reciprocal relative importance on Saaty's 1 to 9 ratio scale, while DEMATEL reads directed 0 to 4 influence with no reciprocity. They are not interchangeable, and surveyframe refuses to pair one with the other's method at validation time, which is what stops meaningless input returning plausible numbers. ## Reporting the whole plan Because every block is declared in the instrument, the whole analysis is one call and the report writes itself in the same order the plan was declared. ```{r summary, echo = FALSE} # as.data.frame() flattens the results to one row per block, so the whole # summary is a column selection, with no loop over internals. results_df <- as.data.frame(results) summary_df <- data.frame( RQ = results_df$block_id, Question = results_df$research_question, Method = toupper(results_df$test), Result = results_df$apa, check.names = FALSE, stringsAsFactors = FALSE ) kable(summary_df, row.names = FALSE, col.names = c("RQ", "Research question", "Method", "Result"), caption = "The declared analysis plan and what each block returned.") ``` ## What surveyframe does not do here The decision family ranks and weights. The choice of method stays with the researcher, and it matters: the 10 available methods encode different assumptions about how criteria trade off against one another. Two limits are worth stating plainly. surveyframe does not estimate choice models, so `sf_conjoint_design()` declares a conjoint design without analysing its responses. And PROMETHEE defaults to Brans and Vincke's type I step function, where some implementations default to the linear function, because the linear function needs thresholds that are commonly derived from the data range, which makes a result depend on a choice nobody declared. See `?sframe_decision_options` for the detail, including how far rankings move between the two. ## How each method was checked A ranking is only as trustworthy as the arithmetic under it, so the evidence behind each method is recorded here in full. Two kinds appear. An *oracle* check computes the same method on the same matrix with RMCDA, an independent package, and compares the numbers. A *derived* check compares against values worked out by hand from the published formula, or against a worked example printed in the source paper. | Method | Evidence behind it | | --- | --- | | AHP | oracle: RMCDA weights on a consistent matrix. Derived: CR on a consistent and an inconsistent matrix | | VIKOR | oracle: RMCDA S, R and Q. Derived: the 2 acceptance conditions | | MOORA | oracle: RMCDA ratio-system scores on RMCDA's own 7-alternative example. Derived: the reference-point variant and direction handling | | WASPAS | oracle: RMCDA scores at lambda 0.5 on RMCDA's own example. Derived: the sum and product parts separately | | ELECTRE | oracle: RMCDA's example, compared on the ordering of one concordance pair. Derived: 2 concordance and discordance entries, and a kernel under direct dominance | | ANP | derived: a stored priority-vector fixture, and the limit matrix's convergence | | DEMATEL | derived: 2-by-2 algebra by hand, and a 4-by-4 fixture | | SMART | derived: scores of 0.2, 0.6 and 0.7 worked out by hand, and invariance to units | | PROMETHEE | derived: flows worked out by hand for the usual and linear preference functions | | TOPSIS | derived: dominance endpoints, cost-direction reversal, invariance to units | RMCDA sits in `Suggests`, so its 5 checks are skipped where it is absent. The 5 derived-only methods differ from RMCDA's in normalisation or in the variant implemented, so a numeric comparison there would compare 2 different methods. DEMATEL is the clearest case: RMCDA scales by a different norm, and the test says so where it derives the expected matrix instead. Reading a citation is a separate check from reproducing a method. The registry behind `?sframe_decision_methods` records which publications were read directly, and names the 1 case, DEMATEL's originating 1972 report, where a later paper's statement of the same equations stood in for a source that stayed out of reach.