Compromising prioritization from pairwise comparisons considering type I and II errors

Abstract

We explore an important problem in prioritizing product design alternatives, using a real-world case. Despite the importance of prioritization in the area of new product development, the development of systematic schemes has been limited and the concepts and methods developed in the decision analysis area do not seem to he used actively. Therefore, we propose a new method, referred to as the compromising prioritization technique, to prioritize the product design alternatives based on paired comparisons. It introduces type I and type II errors and compromises these two errors to arrive at a desirable order of alternatives. To accomplish this, the two indices of homogeneity and separation are developed together with a heuristic algorithm. A comparative study is also conducted to support our method for use in product development and analogous areas. We then demonstrate how to use the developed compromising prioritization technique using a case study on the asymmetric digital subscriber line (ADSL)-based high-speed internet service product. (C) 2009 Elsevier B.V. All rights reserved.