Modified interval EDAS approach for the multi-criteria ranking problem in banking sector of Iran
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ORIGINAL RESEARCH
Modified interval EDAS approach for the multi‑criteria ranking problem in banking sector of Iran Rouhollah Kiani Ghaleh No1 · Sadegh Niroomand1,2 · Hosein Didehkhani1 · Ali Mahmoodirad3 Received: 4 July 2019 / Accepted: 11 September 2020 © Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract In this study an important real-world multi-criteria problem in banking sector is focused. The aim of this problem is to rank some branches of a bank in Iran subject to some economic criteria under interval type uncertainty. The problem is complex because of its multi-criteria nature and also its interval type data. A new solution procedure is proposed for this problem. In the proposed procedure first the criteria are weighted as interval values according to an effective method which combines experts’ opinions and the Shannon’s entropy approach. Then, as a novelty, the classical EDAS multi-criteria solution approach is newly modified for interval type data in order to overcome the shortcomings of the interval EDAS approaches of the literature. Finally, using the data obtained from the case study, an extensive computational study is performed by the proposed solution procedure. The sensitivity of the proposed approach also is analyzed by changing its parameters and a comparative study was done by some other approaches. Keywords Banks ranking problem · Multi-criteria optimization · EDAS approach · Interval number
1 Introduction As banking sector plays a crucial role in developing the countries, recently the ranking problem of this sector has become one of the most important optimization problems. This problem is a significant bridge between economics and mathematical sciences. In order to rank a set of given banks, a set of evaluating criteria should be considered. The criteria such as income, cost, efficiency, etc. are of main criteria to evaluate banking sector. Due to the variety of these criteria in most of cases this ranking problem is defined as a multicriteria decision making problem. The difficulty of this problem arises from some aspects e.g. (1) criteria selection, (2) data collection, (3) uncertain nature of the data, (4) criteria weights determination, (5) multi-criteria solution approach selection, etc. * Sadegh Niroomand [email protected] 1
Department of Industrial Engineering, Aliabad Katoul Branch, Islamic Azad University, Aliabad Katoul, Iran
2
Department of Industrial Engineering, Firouzabad Institute of Higher Education, Firouzabad, Fars, Iran
3
Department of Mathematics, Masjed-Soleiman Branch, Islamic Azad University, Masjed‑Soleiman, Iran
First the criteria selection which is the basis of the ranking problem of banking sector is reviewed here. In the literature, many of the studies consider some traditional criteria such as return on asset, liquidity, capital, etc. to evaluate the banking sector. The most significant studies considering these factors are Kumbirai and Webb (2010), Said and Tumin (2011) and Bičo and Ganić (2012), etc. Further than
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