MCDA

Question 1

What does MCDA stand for

Answer 1

Multi-Criteria Decision Analysis

Question 2

Defenition

Answer 2

• Framework to combine techniques of operations research, management science and system analysis with profession judgement and values in one unified analysis to support decision making
• a descriptive tool, interested in decision analysis

Question 3

Use of MCDA

Answer 3

MCDA is needed to take into account various aspects for better informed (more sustainable) decision making

• Raise awareness of problem complexity
• to address decision uncertainty

Question 4

4 step methodology

Answer 4

1. Structure the Decision Analysis
2. Assess Possible Impacts of Each Alternative
3. Determine preferences (values) of Decision Makers
4. Evaluate and Compare

Question 5

Describe the 4 steps in methodology in the boxes

Answer 5

1. Structure of Decision Analysis
   - Generate Proposed Alternatives
   - Specify objectives and Attributes
2. Assess Possible Impacts of each Alternative
   - Determine Magnitude and Likelihood of Impact of proposed Alternatives
3. Determine Preferences (values) of Decision Makers
   - Structure and Quantity Values of Decision Makers
4. Evaluate and compare
   - Evaluate Proposed Alternatives and Conduct Sensitivity Analysis

Question 6

Describe complexities in each step

Answer 6

Complexities:

Step 1: Structure the Decision Making

• multiple objectives
• difficult to identify good alternatives
• many impact groups

Step 2: Assess possible impacts of each alternative

• Long-time horizon
• Risk and uncertainty
• Risk to life and limb

Step 3: Determine preferences of decision makers

• Several decision makers
• Value trade-offs
• Risk attitude

Step 4: Evaluate and compare

• Sensitivity to analysis
• Uncertainties

Question 7

Describe the 4 methodology steps casually

Answer 7

1. Structure the Decision Making
   - generating alternatives and the specification of objectives
2. Assess the Possible Impacts of Different Alternatives
   - for each alternative, determine the possible consequences and the probabilities of each occuring
   - data collecting
3. Determine Preferences (Values) of Decision Makers
   - unique for MCDA
   - Creation of a model of values to evaluate the alternatives
   - elicits relevant info about value trade-offs, equity concerns and risk attributes
4. Evaluate and Compare Alternatives
   - synthesizes information, from previous steps, in a logical manner to evaluate the alternatives