2 Objectives and Attributes An objective = an indication of preferred direction of movement, i.e. ‘minimize’ or ‘maximize’ An attribute is used to measure performance in relation to an objective
3 An office location problem Location of officeAnnual rent ($) Addison Square30 000 Bilton Village15 000 Carlisle Walk 5 000 Denver Street12 000 Elton Street30 000 Filton Village15 000 Gorton Square10 000
4 Main stages of SMART 1Identify decision maker(s) 2Identify alternative courses of action 3 Identify the relevant attributes 4 Assess the performance of the alternatives on each attribute 5 Determine a weight for each attribute 6 For each alternative, take a weighted average of the values assigned to that alternative 7 Make a provisional decision 8 Perform sensitivity analysis
5 Value tree Costs Benefits Turnover Working conditions Rent Electricity Cleaning Closeness Visibility Image to customers Size Comfort Car parking
6 Is the value tree an accurate and useful representation of the decision maker’s concerns? 1.Completeness 2.Operationality 3. Decomposability 4. Absence of redundancy 5. Minimum size
12 Closeness to customers VisibilityImageSizeComfortCar parking Best100 80 0Worst Best Worst Best Worst Best Worst Best Worst 70 Determining swing weights
13 For example... A swing from the worst ‘image’ to the best ‘image’ is considered to be 70% as important as a swing from the worst to the best location for ‘closeness to customers’...so ‘image’ is assigned a weight of 70.