Scaling by Ideal Value Illustration

For Example 6.5, the maximum and minimum criteria values are as given in the following  

The ideal values for the three criteria are 65,000, 10, and 9 respectively. Of course, the ideal solution is not achievable. 

The scaled criteria values, using the Ideal Value method are computed using Equation 6.5 for TCO and Equation 6.4 for Service and Experience. They are given in Table 6.20. 

Note that the scaled values are such that all criteria (including TCO) have to be maximized. Thus, the new weighted scores are as follows  

The final rankings are suppliers A, B, and C the same ranking obtained using the simple scaling. 

The ideal values for the three criteria are 65,000, 10, and 9, respectively. Of course, the ideal solution is not achievable. Using the ideal value method, the scaled criteria values are computed using Equation 2.6 for TCO and Equation 2.5 for service and experience. They are given in Table 2.4. 

Scaled Criteria Values by the Ideal Value Method (Example 2.3) 

Multiple Criteria Decision Making in Supply Chain Management 

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