W4_AI_Selecting The Best Gas Supply Scheme for X Project Using Compensatory Models

  1. Problem Definition

Since the last week the gas supply scheme already define by using non-compensatory model, then for this week compensatory models will be used to select the best gas supply scheme. By using and compare both of multi attribute decision making models, the best model can be chosen. The compensatory models divided into 2 (two) approach which is non-dimensional scaling and the additive weighting technique.


  1. Identify the Possible Alternative

3 (three) alternative gas supply facility to fulfill gas needed of x area, as follow:

  1. Offshore regasification facility
  2. Gas pipeline
  3. Landbase regasification facility

Table 1. Alternative Value

  1. Development of The Outcome for Alternative

Compensatory model using weighted score with the range 0 to 1 with the purpose is identifying dimensionless value for each attribute.

  1. Non-dimensional Scaling

Table 2. Dimensionless Scoring model

The table above, show the scoring 1 means the highest/optimum value of attribute (preference decision), meanwhile the scoring 0 means the minimum value (avoided decision). Quantitative comparison for each alternative describe in table 2 above, after that the total score is required to represent the rank of alternative.

Table 3. Dimensionless Relative Weighting

Using non-dimensional scaling, the highest rank is offshore regasification facility with total score 6.11 (1.5 times better than pipeline)

2. The Additive Weighting Technique

Table 4. Additive Weighting Score

Table 4 (above) describe the highest rank is offshore regasification facility with total score 0.91 (1.7 times better than pipeline).


  1. Selection Criteria

The highest alternative rank of gas supply scheme was defined using both of compensatory models.


  1. Analysis & Comparison of Alternative

Both of compensatory models have the same result with offshore regasification facility as the highest rank, it shown on:

Table 5. Compensatory Model

The difference between these two techniques is the weighting factors, the additive weighting using weighting factor because each attribute might be have different level of importance. Therefore, the recommendation chosen by additive weighting model, has been concern the alternate values and the attribute importance also.


  1. Selection of the Preferred Alternative

The compensatory model using quantitative data to being calculate, meanwhile the non-compensatory (last week) model using qualitative judgment to being analyze. Since the quantitative approach give more clear comprehension, so the preferred model to present to director is compensatory model.

Both models, compensatory and non-compensatory model show that Offshore Regasification facility was the best alternative to choose.


  1. Performance Monitoring and The Post Evaluation of Result

The alternative value could be change based on the project characteristic (every project is unique), so it is importance to really understand about the alternative to be compared.


  1. Planning Planet (2017). Multi Attribute Decision Making.

Retrieved from http://www.planningplanet.com/guild/gpccar/managing-change-the-owners-perspective

  1. Sullivan, G. W. (2014). Engineering Economy 16th Chapter 14 – Decision Making Considering Multiattributes, pp. 603-608.
  2. Ardi (2017). W3_A_Using Multiattribute Decision Making with Compensatory and Non-Compensatory Model for Supply of Electricity Tanjung Uban

Retrieved from http://emeraldaace2017.com/2017/08/15/w3_a_using-multiattribute-decision-making-with-compensatory-and-non-compensatory-model-for-supply-of-electricity-tanjung-uban/


1 thought on “W4_AI_Selecting The Best Gas Supply Scheme for X Project Using Compensatory Models”

  1. Excellent Bu Irene!!! You are doing a great job following our 7 step process now!!!

    Be sure to take credit for not only your BLOG project but also for your PROBLEMS from Engineering Economy, Chapter 14.

    Just be sure to allocate your hours appropriately between your blog project and your problems project otherwise your CPI and CV calculations are going to be wrong.

    Dr. PDG, Perth, Australia


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