In this section, we will use our proposed method to resolve a real case in Shanghai and make comparisons with the traditional TOPSIS method and dynamic decision method based on prospect theory. Furthermore, we will study a case of selecting location for disposing household solid waste after determining the best enterprise, and make a comparison with the TODIM method.
5.1. Description of Case Background
Shanghai, as an economic center of China, has a population more than 24 million and has been surrounded with a great deal of garbage for many years. Mountains of garbage have serious impacts on the physical and mental health of local residents. Recently, the Shanghai government put forward a new policy for mandatory garbage sorting from July 1, 2019. According to the new policy, the household garbage can be sorted into four categories: recyclable wastes, hazardous wastes, wet wastes and dry wastes. The process of disposing recyclable wastes can be decomposed into some PPP projects. There is a PPP project needing some enterprise bids. Based on the process of preliminary screening, there are eight enterprises selected for the list: . Four criteria are considered:
(Technical level): the ability of the enterprise to effectively dispose the household garbage;
(Revenue situation): the revenue situation of the enterprise’s normal development;
(Social responsibility): the enterprise’s responsibility for protecting environment and contribution to society;
(Development potential): the ability of the enterprise for rapid development and creating value.
Based on data in the past four years (2015–2018), an evaluation expert team makes an evaluation for the eight enterprises under the four criteria and gives four decision matrices according to their experiences as shown in
Table 1,
Table 2,
Table 3 and
Table 4. In detail, for example, the element
means that the expert team thinks that the score of alternative
under criterion
for “good” is 0.90 and for “bad” 0.20 in 2015. It is worth note that the sum of score for “good” and “bad” may be larger than one because of experts’ uncertain judgements.
5.3. Further Discussions
In the above decision procedure, risk aversion coefficient and orness value play an important role. We next discuss the two parameters.
(1) Decision making result analysis based on variation of parameter
To make the analysis easy, we assume the orness value
. The overall regret–rejoice value of
(
) under different
can be seen as
Table 9 and
Figure 1.
The ranking result can be seen in
Table 10.
From
Table 10, we can see that the ranking results are somewhat different with different
, and the alternative
is the best enterprise to invest.
(2) Decision making result analysis based on variation of parameter
We here assume
. The overall regret–rejoice value of
(
) under
,
and
can be seen as the following
Figure 2.
The ranking result under
,
and
can be seen as
Table 11.
From
Table 11, we can see that the ranking results are different with different
. The alternative
is the best enterprise to invest when
and
, and alternative
is the best enterprise to invest when
.
5.4. Comparison Analysis
(1) Comparison with the TOPSIS method proposed in [
29]
To embody the effectiveness of our method, we make a comparison analysis with the TOPSIS method proposed by Zhang and Xu [
29]. The TOPSIS method can be described as the following steps.
- (1)
Determine the PIS and NIS based on decision matrix ;
- (2)
Compute the distance between and as ;
- (3)
Compute the distance between and as ;
- (4)
Calculate the revised closeness for alternative ;
- (5)
Rank the alternatives according to the value .
We use the TOPSIS method to solve our decision problem and obtain the decision results as follows.
The ranking result is .
From
Table 11 and
Table 12, we can see that alternative
is the best enterprise both in TOPSIS method and our proposed method when
and
, and in most cases the ranking results are different between the two methods. TOPSIS method mainly focuses on the distances between alternatives and an ideal solution, and usually does not consider the DMs’ preference. In real decision-making problems, DMs’ preference is very important and influences the decision-making results. Our proposed method uses the RT considering the DMs’ preference, which is close to actual decision-making processes. Our proposed method may be flexible by setting different parameters
according to the DMs’ preference in practical decision-making problems. Furthermore, the TOPSIS method can hardly solve the dynamic decision making problems while our proposed can solve them by a GM(1,1) model. Therefore, our proposed method is more generally applicable than the TOPSIS method.
(2) Comparison with the dynamic decision method based on prospect theory proposed in [
38]
Ding et al. [
38] proposed a dynamic method based on prospect theory. The main decision steps are concluded as follows.
- (1)
Compute the criteria weights;
- (2)
Compute the prospect values for () at different time node ();
- (3)
Rank the alternatives according to ;
- (4)
Let . If , then go to Step 1; otherwise, stop.
We use the dynamic decision method to solve our decision problem. We use the same parameters in prospect theory as Ding et al. [
38].
(1) To make the comparison effective, we use the criteria weights .
(2)–(3) We assume the probabilities of these states is equal. We obtain
(1) At the time node 1
, , ,, , , , .
The ranking result is .
(2) At time node 2
The ranking result is
(3) At time node 3
The ranking result is
(4) At time node 4
The ranking result is .
We can see that the ranking results are different between our proposed method and in [
38]. According to the method proposed in [
38], alternative
is the best enterprise only at time node 1. In our proposed method, alternative
is the best enterprise in most cases. Both the two methods consider the DM’s preference and are in a dynamic decision-making style. However, the method proposed by Ding et al. [
38] ranks the alternatives in different time nodes and cannot predict the decision-making data in future. As we know, an excellent enterprise should have a good development prospect. In other words, the decision data in future are essential to predict. Our proposed method can use the GM(1,1) model to predict the decision matrix at the next time node 5. DMs can obtain the possible information in the future using our method. Furthermore, the method proposed by Ding et al. [
38] gives different ranking results at different time nodes, which will make DMs confused to rank alternatives. Our proposed method can obtain certain ranking result according to the DM’s preference and the decision-making data in future.
5.5. Selecting Location for Disposing Household Solid Waste
Decision Making Problem Description
From the above analysis, we can obtain that the alternative
is the best enterprise to dispose HSW. Another problem is how to select the most suitable location for disposing HSW, which can be seen as an MCDM problem. Through the investigation and research, three locations are considered:
,
and
. According to Beskese et al. [
27], there are four criteria:
(Available land),
(Soil conditions and topography),
(Climatologic and hydrologic conditions) and
(Economic considerations). Experts make an evaluation for the three alternatives under the four criteria according to the data in the past four years (2015–2018), and give four decision making matrices
,
,
and
as the following
Table 13,
Table 14,
Table 15 and
Table 16.
We solve this decision-making problem using our proposed method as follows.
Based on Equations (17) and (18), we get the prediction PFN matrix as showed in
Table 17 (
).
Based on prediction matrix and Equation (19), the criteria weights can be obtained as .
Based on Equation (20), choose
and compute the utility value decision matrix
as the following
Table 18.
Compute the overall regret–rejoice value () as .
The ranking result is . The alternative is the most suitable location.
(2) Comparison with Pythagorean fuzzy TODIM method proposed by Ren et al. [
14]
Pythagorean fuzzy TODIM method proposed by Ren et al. [
14] can be concluded as follows:
- Step 1.
Compute the relative weight for () as , where .
- Step 2.
Calculate dominance degree () over under criterion as
- Step 3.
Compute the overall dominance degree of the alternative over as
- Step 4.
Compute the overall value of alternative over other alternatives as .
- Step 5.
Rank the alternatives according to .
We apply this method to solve our decision-making problem.
Step 1. The relative weights can be obtained as .
Step 2–Step 3. According to prediction PFN matrix, the overall dominance degree can be computed as
, , , , , .
Step 4. The overall values of alternatives can be computed as , , .
Step 5. The ranking result is .
If we use a traditional linear weighting method, we can obtain , which is the same as our proposed method.
The ranking results are different between our proposed method and the TODIM method proposed by Ren et al. [
14]. The main reason lies in the fact that our proposed method uses the RT while the TODIM method proposed by Ren et al. [
14] uses the TODIM method. Both the two methods are behavior decision-making methods. However, the former method can solve the dynamic decision-making problems while the latter one cannot. Our proposed method is more generally applicable than the TODIM method proposed by Ren et al. [
14]. Furthermore, the ranking result using traditional linear weighting method is the same as our proposed method, which illustrates the effectiveness of our method.