Multicriteria modelling for a repair contract problem based on utility and the ELECTRE I method

Each alternative for a repair contract implies a specific response time and related cost. The response time is associated with the commitment of repair time, based on the contract. A decision maker chooses the best alternative taking into account the system performance and the cost of the contract. This problem has been analysed through a multicriteria decision model. This decision model supports decision makers in the determination of the best combination of contracting conditions. The decision model proposed allows the decision maker to quantify the consequences of an action taking into account two basic criteria: the cost of the contract and the system performance. Two different decision models have been built to support decision makers. These decision models are based on different multicriteria approaches. The first, reported in a previous paper, is based on the multiattribute utility theory. The model presented in this paper is based on the ELECTRE I method combined with utility functions. The paper presents the main theoretical aspects related to both approaches and practical implications related to model building. A numerical application is presented in order to illustrate the use of the decision model.