W6_TOM_ Choosing MBA Program by Using Multi-Attribute Decision Making Compensatory Models.

1. Problem Definition

Ms. XY has intention to enter next education level through a Master of Business and Administration degree. And she is strongly determined to choose MBA program which best fit with her preferences. And what she asked is advice on which one is the best MBA program for her.


2. Development of Feasible Alternative

In the previous blog post, I already created analysis using multi-attribute decision making using non-compensatory models. As advised by Dr. Paul (W5 Blog: https://simatupangaace2014.wordpress.com/2013/10/04/w5_tom_-choosing-mba-program-by-using-multi-attribute-decision-making-non-compensatory-models/#comments) in order to create deeper and sharper analysis, we extend to use multi-attribute decision making compensatory models, which are non-dimensional scaling and additive weighting technique models.

3. Development Outcomes for Alternatives

Based on Ms. XY’s personal preferences, she would like to choose one of four possible alternatives, which are MBA programs at University of Melbourne, INSEAD, Boston University, or Erasmus University.

4. Selection of Criteria

The selection of the best MBA for Ms. XY should have analysis that considers attributes of alternatives which shown below:

5. Analysis of the Alternative

The basic principle behind all compensatory models, which involve a single dimension, is that the values for all attributes must be converted into a common measurement. And the other thing about compensatory model is that good performance in one attribute can compensate for poor performance in another attribute of alternative.

The equations for converting attribute values to its dimensionless rating is:

Non-Dimensional Scaling

Therefore we are able to generate attributes’ dimensionless ratings which shown as follow:

Afterward, we can see the ratings and accumulate total dimensionless rating value of alternatives:

Using this model, Erasmus University is considered to be the best choice, with the highest rating value of 7.27.

Additive Weighting Technique

Additive Weighting Technique utilizes information derived from non-dimensional scaling and lexicography model, which we previously done. The objective is to combine dimensionless rating value with relative rank in a calculation.

Based on information above we are able to see relative rank of each attribute:

In this case, we are able to see that INSEAD has the highest value, followed by Erasmus University with only 0.01 point of value difference.

6. Selection of Preferred Alternative

Based on analysis above and considering results derived from non-compensatory models, (dominance model, satisficing model & disjunctive resolution model and lexicography model), the best MBA program that best fit with Ms. XY’s preferences would be MBA at Erasmus University.

7. Performance Monitoring & Post Evaluation Result.

Even though the analysis selects Erasmus University as the result, however on the other hand INSEAD seems very competitive and actually can turn out to be the second alternative. It has 0.01 point of value higher than Erasmus University in additive weighting technique model and very competitive in the non-compensatory models.

I hope this blog and all my previous blogs will be good references for anyone and I am very pleased to share it.


  1. Sullivan, W. G., Wicks, E. M., & Koelling, C. P. (2012). Engineering Economy. (15th ed.).Chapter 14 Decision Making Considering Multiattributes. (pp. 555-560). Boston, MA: Prentice Hall.
  1. AACE Course Jakarta Blog (2013). Choosing MBA program Using Multiattribute Decision Making Non-Compensatory models. Retrieved on 10 October 2013 from https://simatupangaace2014.wordpress.com/2013/10/04/w5_tom_-choosing-mba-program-by-using-multi-attribute-decision-making-non-compensatory-models/
  1. Erasmus University. (2013). Tuition Fees and Other Costs.

    Retrieved on 27 September 2013 from:


  2. INSEAD. (2013). Tuition and Fees.

    Retrieved on 27 September 2013 from:http://mba.insead.edu/financing/fees.cfm

  3. University of Melbourne. (2013). Cost of Living Summary Table.

    Retrieved on 27 September 2013 from:http://services.unimelb.edu.au/finaid/planning/cost_of_living/summary

  4. Boston University. (2013). Tuition and Financial Aid. Available:

    Retrieved on 27 September 2013 from:http://management.bu.edu/graduate/graduate-admissions/tuition/full-time/

  5. Financial Times. (2013). Erasmus University.

    Retrieved on 27 September 2013 from:http://rankings.ft.com/businessschoolrankings/rsm-erasmus-university/global-mba-ranking-2013#global-mba-ranking-2013

  6. Financial Times. (2013). INSEAD.

    Retrieved on 27 September 2013 from:http://rankings.ft.com/businessschoolrankings/insead/global-mba-ranking-2013#global-mba-ranking-2013

  7. Financial Times. (2013). University of Melbourne.

    Retrieved on 27 September 2013 from:http://rankings.ft.com/businessschoolrankings/melbourne-business-school/global-mba-ranking-2013#global-mba-ranking-2013

  8. Financial Times. (2013). Boston University.

    Retrieved on 27 September 2013 from:http://rankings.ft.com/businessschoolrankings/boston-university-school-of-management/global-mba-ranking-2013#global-mba-ranking-2013

  9. Bloomberg. (2013). EUR-USD Exchange Rate on 27 September 2013.

    Retrieved on 27 September 2013 from:http://www.bloomberg.com/quote/EURUSD:CUR


Filed under Tommy Edward, Week 06

2 responses to “W6_TOM_ Choosing MBA Program by Using Multi-Attribute Decision Making Compensatory Models.

  1. Nice job, Tommy!! Great case study and you did a fine job on your analysis!!

    Good to see you caught up. Now I hope to see you build in a buffer of a week or two just in case something happens?

    Dr. PDG, Jakarta

  2. PS: Just be sure to claim credit for this blog and 1 of your two questions from Chapter 14……. You are entitled to earned value and given the problems with the weekly report, you need to be claiming as much earned value as possible….

    Dr. PDG, Jakarta

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