OCRA Algorithm

Operational Competitiveness Rating Analysis (OCRA) is an efficiency-based MCDM method. It calculates the relative performance of alternatives based on beneficial (outputs) and non-beneficial (inputs) criteria separately.

1. Beneficial Criteria Rating (\(\bar{I}\)):
\[ \bar{I}_{ij} = \frac{x_{ij} – \min(x_{j})}{\min(x_{j})} \] 2. Beneficial Aggregate Score (\(P_i\)):
\[ P_i = \sum_{j=1}^{n} w_j \bar{I}_{ij} \]
3. Non-Beneficial Criteria Rating (\(\bar{O}\)):
\[ \bar{O}_{ij} = \frac{\max(x_{j}) – x_{ij}}{\min(x_{j})} \] 4. Non-Beneficial Aggregate Score (\(R_i\)):
\[ R_i = \sum_{j=1}^{n} w_j \bar{O}_{ij} \]
5. Final Score (\(E_i\)):
\[ E_i = (P_i + R_i) – \min(P + R) \]

Solved Example: Project Efficiency

Goal: Evaluate 4 Projects based on 4 Criteria: Revenue (B), Quality (B), Operational Cost (C), and Risk (C). Weights: 0.3, 0.2, 0.3, 0.2.

Step 1: Decision Matrix & Min/Max
AltRev (B)Qual (B)Cost (C)Risk (C)
P15008020010
P26008525015
P34509018012
P47007530020
Min4507518010
Max7009030020
Step 2: Calculating Ratings for P1
Benefit (Rev): \((500 – 450) / 450 = 0.111\)
Benefit (Qual): \((80 – 75) / 75 = 0.067\)
Cost (Cost): \((300 – 200) / 180 = 0.556\)
Cost (Risk): \((20 – 10) / 10 = 1.000\)

Step 3: Weighted Sums for P1
\(P_1 = (0.3 \times 0.111) + (0.2 \times 0.067) = 0.0467\)
\(R_1 = (0.3 \times 0.556) + (0.2 \times 1.000) = 0.3668\)
\(Total_1 = 0.0467 + 0.3668 = 0.4135\)
Step 4: Final Ranking
AltP (Benefit)R (Cost)SumFinal ScoreRank
P10.0460.3660.4120.3551
P20.1260.1830.3090.2523
P30.0400.3600.4000.3432
P40.1660.0000.1660.1094

OCRA Interactive Calculator

Weights
Type
A1
A2
A3
A4
Math Tools

Designed by: Dr. M.U. Mirza

Mathematical Researcher & Educator

Machine Learning Fuzzy Sets Computational Math Graph Theory
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