Revision as of 23:43, 21 February 2021

Abstract

Simple Multi-Attribute Rating technique (SMART) is a method for conducting Multi-Criteria Decision Making (MCDM), in which assessment and selection of the best alternative, amongst several different alternatives, is based on a list of relevant socio-economic criteria. MCDM is a relatively new method for assessing alternatives or projects and it stems from the science of operations research. MCDM differs from traditional evaluations methods, like the cost-benefit-analysis (CBA), in multiple ways. Where a traditional CBA compares costs and benefits on a monetary scale, MCDM allows the assessment of alternatives on both a monetary as well as non-monetary scale. SMART is considered as one of the main techniques for MCDM and the overall purpose of SMART is generally to assist the decision maker when trying to choose the best option amongst several alternatives. SMART is based on a linear additive model, which means that a performance score for all individual alternatives can be calculated as the sum of the relative performance of each alternative on each identified evaluation criterion multiplied by the relative importance of that specific criterion. The techniques therefore consist of three distinct elements: A set of alternatives, a set of criteria that the alternatives are to be evaluated on and the relative importance of these criteria, called the criteria weights. The best alternative is thus found by calculating a total performance score for each alternative and then selecting the one that reveals the highest total performance score. SMART provides a simple and intuitive method for supporting the decision maker. The method has become fairly popular in recent years and is used throughout many areas of application such as transportation and logistics, problem planning, project selection and manufacturing.

Big idea

What is MCDM?\\ Multi Criteria Decision Making (MCDM) is a relatively new approach for solving decision making problems. The method tries to resolve some of the issues related to theoretical evaluation difficulties by taking an engineering approach rather than an economics approach. The overall objective of MCDM and decision support tools like SMART is to allow the decision maker to break down complex decision problems into smaller and more tangible problems that can be solved independently and then combined again. MCDM generally breaks down the decision problem into three different components: (1) The alternatives, (2) The criteria for evaluating the performance of the identified alternatives and (3) the relative importance of the criteria modelled as weights.

Limitations

Explanation of strengths and weaknesses of the SMART tool.

Annotated bibliography

Edwards, W. and Barron, SMARTS and SMARTER: Improved Simple Methods for Multiattribute Utility Measurement Organizational Behavior and Human Decision Processes, Elsevier

DTU Transport, Multi-criteria decision analysis for use in transport decision making, 2014.