Comparison of Multi Criteria Decision Making Methods SAW and ARAS: An Application to Performance of Indian Pharmaceutical Companies

Abstract

While assessing the performances of companies, the decision makers to take not only a single criterion for making the right decisions in to account, but also a number of other relevant criteria that could affect the performance. Because when it is necessary to make the best selection among several option, Multiple-Criteria Decision Making (MCDM) methods are used. This study is to provide insight in to the applicability of method Simple Additive Weightings Method (SAW) and Additive Ratio Assessment (ARAS) method under MCDM techniques to evaluate the performance of Indian Pharmaceutical companies during the study period 2006-2019. The seventeen evaluation criteria’s were used in the application. The constructed model was analysed using both SAW and ARAS method. The study results showed that the best performance belongs to Glico Smith Kline Pharma Limited in SAW method and Sun Pharmaceutical Industries Ltd in ARAS method and worst performance belongs to Ranbaxy Laboratories Limited in both methods. By comparison, both methods revealed the similar rankings of companies during the study period.