You are on page 1of 29

Grey relational analysis

1. INTRODUCTION

Grey analysis uses a specific concept of information. It defines situations


with no information as black, and those with perfect information as white. However,
neither of these idealized situations ever occurs in real world problems. In fact,
situations between these extremes are described as being grey, hazy or fuzzy.
Therefore, a grey system means that a system in which part of information is known
and part of information is unknown. With this definition, information quantity and
quality form a continuum from a total lack of information to complete information –
from black through grey to white. Since uncertainty always exists, one is always
somewhere in the middle, somewhere between the extremes, somewhere in the grey
area.

Grey analysis then comes to a clear set of statements about system solutions.
At one extreme, no solution can be defined for a system with no information. At the
other extreme, a system with perfect information has a unique solution. In the middle,
grey systems will give a variety of available solutions. Grey analysis does not attempt
to find the best solution, but does provide techniques for determining a good solution,
an appropriate solution for real world problems.

The proposition of Grey theory occurring in the 1990 to 1999 time period
resulted in the uses of Grey theory to each field, and the development is still going on.
The major advantage of Grey theory is that it can handle both incomplete information
and unclear problems very precisely. It serves as an analysis tool especially in cases
when there is no enough data. It was recognized that the Grey relational analysis in
Grey theory had been largely applied to project selection, prediction analysis,
performance evaluation, and factor effect evaluation due to the Grey relational analysis
software development. Recently, this technique has also applied to the field of sport
and physical education.

P.E.S. College Of Engineering


1 Aurangabad
Grey relational analysis

2. Grey Theory

The black box is used to indicate a system lacking interior information.


Nowadays, the black is represented, as lack of information, but the white is full of
information. Thus, the information that is either incomplete or undetermined is called
Grey.

A system having incomplete information is called Grey system. The


Grey number in Grey system represents a number with less complete information. The
Grey element represents an element with incomplete information. The Grey relation is
the relation with incomplete information. Those three terms are the typical symbols
and features for Grey system and Grey phenomenon. There are several aspects for the
theory of Grey system:

1. Grey generation: This is data processing to supplement information. It is aimed


to process those complicate and tedious data to gain a clear rule, which is the
whitening of a sequence of numbers.

2. Grey modeling: This is done by step 1 to establish a set of Grey variation


equations and Grey differential equations, which is the whitening of the model.

3. Grey prediction: By using the Grey model to conduct a qualitative prediction,


this is called the whitening of development.

4. Grey decision: A decision is made under imperfect countermeasure and unclear


situation, which is called the whitening of status.

5. Grey relational analysis: Quantify all influences of various factors and their
relation, which is called the whitening of factor relation.

6. Grey control: Work on the data of system behavior and look for any rules of
behavior development to predict future’s behavior, the prediction value can be fed
back into the system in order to control the system.

The Grey relational analysis uses information from the Grey system to
dynamically compare each factor quantitatively. This approach is based on the level of

P.E.S. College Of Engineering


2 Aurangabad
Grey relational analysis

similarity and variability among all factors to establish their relation. The relational
analysis suggests how to make prediction and decision, and generate reports that make
suggestions. This analytical model magnifies and clarifies the Grey relation among all
factors. It also provides data to support quantification and comparison analysis. In
other words, the Grey relational analysis is a method to analyze the relational grade for
discrete sequences. This is unlike the traditional statistics analysis handling the relation
between variables.

P.E.S. College Of Engineering


3 Aurangabad
Grey relational analysis

3. GREY RELATIONAL ANALYSIS

The validity of traditional statistical analysis techniques is based on


assumptions such as the distribution of population and variances of samples.
Nevertheless sample size will also affect the reliability and precision of the results
produced by traditional statistical analysis techniques. J. Deng argued that many
decision situations in real life do not conform to those assumptions, and may not be
financially or pragmatically justified for the required sample size. Making decisions
under uncertainty and with insufficient or limited data available for analysis is actually
a norm for managers in either public or private sectors. To address this problem, J.
Deng developed the grey system theory, which has been widely adopted for data
analysis in various fields.

The grey relational analysis introduced in the following is a method in grey


system theory for analyzing discrete data series. A procedure for the grey relational
analysis consists of the following steps.

1. Generate reference data series x0.

X0 = (d01, d02, ..., d0m)

Where m is the number of respondents. In general, the x0 reference data

Series consists of m values representing the most favoured responses.

2. Generate comparison data series xi.

Xi = (di1, di2, ..., dim)

where i = 1, ..., k. k is the number of scale items. So there will be k comparison


data series and each comparison data series contains m values.

3. Compute the difference data series Δi.

Δi=(|d01 – di1| , |d02 – di2| , ..., |d0m – dim|)

P.E.S. College Of Engineering


4 Aurangabad
Grey relational analysis

4. Find the global maximum value Δmax and minimum value Δmin in the
difference data series.
Δmax =∀imax (max Δi)

Δmin =∀imin (min Δi)

5. Transform each data point in each difference data series to grey relational
coefficient. Let γi(j) represents the grey relational coefficient of the jth
data point in the ith difference data series, then

γi(j) = (Δmin + ςΔmax)/( Δi(j) + ςΔmax)

Where Δi(j) is the jth value in Δi difference data series. ς is a value


Between 0 and 1. The coefficient ς is used to compensate the effect of
Δmax should Δmax be an extreme value in the data series. In general
The value of ς can be set to 0.5.

6. Compute grey relational grade for each difference data series. Let Γi
Represent the grey relational grade for the ith scale item and assume that
Data points in the series are of the same weights 1, then

The magnitude of Γi reflects the overall degree of standardized deviance


of the ith original data series from the reference data series. In general,
a scale item with a high value of Γ indicates that the respondents, as a
Whole, have a high degree of favoured consensus on the particular item.

7. Sort Γ values into either descending or ascending order to facilitate the


Managerial interpretation of the results.

P.E.S. College Of Engineering


5 Aurangabad
Grey relational analysis

This is brief procedure for the grey relational analysis. Now we will discuss in details
the Grey theory and method as follow:

3.1. Influence space, measurement space, and Grey relational space

Let P(X) represent the factor set of a specific topics, Q is the influence
relation, then {P(X); Q} is influence space. It must have the following properties:

1. Existence of key factors: for example, the key factors of basketball player are
height, weight, and rebound.

2. Numbers of factors are limited and countable: for example each of the height,
weight, and rebound are countable.

3. Factor in dependability: each factor must be independent.

4. Factor expandability: For example, besides the height, weight, and rebound, the
free throw attempt can be added as a factor.

The series formed by P(X) is:

xi(o) (k) = ( x1(o) (1),…, xi(o) (k))?X;

Where i = 0,…,m. k=1,…,n.?N

If the following conditions are satisfied:

1. No dimension: the numeric value for all factors must be no dimension.

2. Scaling: the factor value for various series must be at the same level.

3. Polarization: if the factor value in the series is described as the same direction, the
series is comparable. Then the measurement space is expressed as {P(X); xi*(k)}, the
Grey relational space formed by the satisfaction of both factor space and comparability
is termed by {P(X); Γ}.

P.E.S. College Of Engineering


6 Aurangabad
Grey relational analysis

3.2. Generation of Grey relation

Under the principle of series comparability, to achieve the purpose of Grey


relational analysis, we must perform data processing. This processing is called
generation of Grey relation or standard processing. The expected goal for each factor
is determined by Wu based on the principles of data processing. They are described in
the following:

1. If the expectancy is larger-the-better (e.g., the benefit), then it can be expressed


by

Xij = (Xij – (Xij)min)/((Xij)max – ( Xij)min) (1)

2. If the expectancy is smaller-the-better (e.g., the cost and defects), then it can be
expressed by

Xij = ((Xij)max – Xij)/((Xij)max – ( Xij)min) (2)

3. If the expectancy is nominal-the-best (e.g., the age), and when the targeted
value is X0 : (Xij)max ? X0 ? ( Xij)min ,then it can be expressed by
Xij = (Xij – X0 )/ ((Xij)max – X0) (3)

3.3. The Grey relational grade

The measurement formula for quantification in Grey relational space is called


the Grey relational grade. When we are determining Grey relation and taking only one
series, X0(X) , as a referenced series, it is called the grade of local Grey relation. If
anyone of the series, Xi(X) , is referenced series, it is called the grade of global Grey
relation. Additionally, the Grey relational coefficient must first be determined before
we obtain the Grey relational grade.

In the Grey relational space, {P(X); Γ}, there is a series

xi= ( xi( 1 ), xi( 2 ), ?, ?? ,xi( k )) ?X

P.E.S. College Of Engineering


7 Aurangabad
Grey relational analysis

Where i = 0,…,m. k=1,…,n.?N

If the grade of local Grey relation is brought to define the Grey relational coefficient,
γ ( xi( k ),xj( k ) ) it can be expressed as following:

γ ( xi( k ),xj( k ) ) = (Δmin +Δmax)/( Δ0i(k) + Δmax) (4)

Where i = 0,…,m. k=1,…,n. j?i; x0 is a referenced series, xi is a specific


comparative series;

Representing the k’s absolute value of the difference of X0 and Xi ;

After obtaining the Grey relational coefficient, we normally take the average of the
Grey relational coefficient as the Grey relational grade:

(5)

However, since in real application the effect of each factor on the system is not exactly
same, Eq. (5) can be modified as:

(6)

Where  represents the normalized weighting value of a factor and

When equating both Equations (5) and (6).

P.E.S. College Of Engineering


8 Aurangabad
Grey relational analysis

3.4. The Grey relational series

The Grey relational grade represents the correlation between two series. It is
not important in a decision-making. Rather, the ranking order of the relational grade is
the most important information. Therefore, m’s comparative series with its
corresponding Grey relational grade is rearranged according to the order of their
magnitudes. A Grey relational series is defined as following:

In the Grey relational space, {P(X); Γ}, referenced series, x0, and comparative
series, xi and xJ:

If g(x0 , xi) ? g( x0 , xj), the situation indicating the relational grade of xi vs. x0 is
greater than that of xj vs. x0, or represented by Γ0i >Γ0j. This is the relational series for
xiand xj.

3.5. Decision for Grey multiple attributes.


To solve problems, if many ways or feasible methods exist, we normally
make a complete evaluation on those resolutions. Then decision is made based on the
evaluation results. It is noted that the multiple attributes decision-making is defined
when more than one-evaluation factors are considered. Hence, the application of Grey
relational analysis to multiple purposes and attributes is called as Grey multiple
attributes decision.
Moreover, this method regards each comparative series as a feasible
solution, and the numeric score for each evaluation factor becomes the numeric value
for each comparative value. The relational grade between comparative series and
standard series is then determined. Finally, the decision can be made based on the
ranking of each feasible solution.

P.E.S. College Of Engineering


9 Aurangabad
Grey relational analysis

4. ILLUSTRATION OF NUMERICAL RESULTS


In the above section we have discussed, what grey relational analysis is
and detail procedure of grey relational analysis. To understand the application of grey
relational analysis and where it should be used, we will discuss two numerical or
application of grey relational analysis.

4.1 Applying Grey Relational Analysis to the Decathlon Evaluation Model

For showing the significance of Grey relational analysis in sport score


evaluation and resolving the problems of scoring dispute, the method for decathlon
ranking using Grey relational analysis is discussed herein. We assume there are five
contestants attending decathlon competition. The score is shown in Table 2. By
utilizing traditional method, the results in Table 4.1.0 showing the ranking order are A,
D, B, C and E.

Pole Vault Javelin Throw

Meter Points Meter Points


469 101.26 1,375
3.45

P.E.S. College Of Engineering


10 Aurangabad
Grey relational analysis

467 101.20 1,374


3.44
464 101.14 1,373
3.43
462 101.08 1,372
3.42
459 101.02 1,371
3.41
457 100.96 1,370
3.40

Table 4.1.0: Typical score table for Pole Vault and Javelin Throw

Event 100 M Long Shot High 110 M Discu Pole Javelin 1500
Contest (Secs) Jump Put Jump 400 high s Vaul Throw M
ant (M) (M) (M) (M) M Hurdles Thro- t (M) (Secs
(Sec (Secs) w (M)
s) (M)

14.5 48.4 256.6


A 11.13 7.34 2.25 14.56 43.67 5.70 60.50
0 5 5

13.7 47.2 265.5


B 11.10 6.95 2.27 14.18 45.50 5.12 55.25
5 0 5

12.8 46.9 290.1


C 11.65 6.50 2.08 14.05 39.55 4.45 60.15
0 0 5

14.2 48.9 240.9


D 11.25 7.43 2.27 15.13 49.28 4.70 61.32
5 0 5

13.1 49.7 288.5


E 11.00 7.23 2.03 14.96 38.66 4.50 52.82
5 3 7

P.E.S. College Of Engineering


11 Aurangabad
Grey relational analysis

Table 4.1.1: Statistical data for the decathlon competition

110
Even Lon Hig- Dis Javel R
Sho M Pole Total
-t 100 -g h 400 cus in 150 a
-t High Vaul score
Cont M Jum Jum M Thr Thro 0M n
Put Hurdl t s
estan p p ow w k
es
t
104
A 832 896 759 887 903 740 1090 746 839 8,733 1
1
106
B 838 802 713 948 951 777 947 667 778 8,482 3
1

C 721 697 655 878 963 968 655 746 740 619 7,642 4

106
D 806 918 744 866 834 855 819 758 885 8,546 2
1
E 861 869 676 831 829 854 638 760 630 631 7,599 5

Table 4.1.2: Event score obtained by traditional method

Moreover, if five contestants attending decathlon competition, the following procedure


indicates how the top of three can be determined.

4.1.1. Implementation with evaluation matrix

P.E.S. College Of Engineering


12 Aurangabad
Grey relational analysis

Generate an evaluation matrix by arranging game event as attribute column,


and contestants as comparative sequence. In the analysis, the record for the five
contestants is used to form evaluation matrix as shown in Table 4.1.1.

4.1.2. Data rationalizing

Expected goal can be rationalized according to each attribute. A group of assumptions


are made for the following:

1. 100 meters, 400 meters, 1500 meters, and 110 meters high hurdles: In
this category, it is obviously that the expectancy is shorter-the-better for the
time, which can be determined by:

In which Xij represents the score both at attribute i and comparative series j.

2. Long Jump, Shot Put, and High Jump: The expectancy in this category is
longer-the-better for the distance, which can be determined by

Based on the expectancy of each individual event, the scoring points for each attribute
are normalized to obtain the matrix table of comparative series as shown in Table 4.4.

P.E.S. College Of Engineering


13 Aurangabad
Grey relational analysis

4.1.3. Establishing standard series

In accordance with our expected goal for each individual contest event, an ideal
standard series (X0 = 1) is established in the last line in Table 4.1.3.

Event
Lon Hig 110 M Discu Javeli
Comparati Pole
100 g Shot h 400 High s n 1500
ve Vaul
M Jum Put Jum M Hurdl Thro Thro M
Series t
p p es w w

0.80 0.90 1.00 0.91 0.45 1.00 0.68


X1 0.528 0.472 0.904
0 3 0 2 2 0 1
0.84 0.48 0.55 1.00 0.89 0.53 0.50
X2 0.880 0.644 0.286
6 4 9 0 4 6 0
0.00 0.00 0.00 0.20 1.00 0.00 0.00
X3 1.000 0.084 0.862
0 0 0 8 0 0 0
0.61 1.00 0.85 1.00 0.29 0.20 1.00
X4 0.000 1.000 1.000
5 0 3 0 3 0 0
1.00 0.78 0.25 0.00 0.00 0.04 0.03
X5 0.157 0.000 0.000
0 5 8 0 0 0 2

Standard
1 1 1 1 1 1 1 1 1 1
series (X0)

P.E.S. College Of Engineering


14 Aurangabad
Grey relational analysis

Table 4.1.3: Data rationalizing

4.1.4. Determination of Grey relational coefficient for each contestant

1. Calculate the maximum and minimum difference by:

The resulting maximum difference is one;

The resulting minimum difference is zero.

2. Calculate the Grey relational coefficient by:

By substituting the value of maximum and minimum difference into above


equations, the Grey relational coefficient for each contestant (individual contest
event) is shown in Table 4.1.4.

P.E.S. College Of Engineering


15 Aurangabad
Grey relational analysis

110 M
Event 100 High 400 Discus Pole Javelin 1500
High
Comparative M Shot Jump M Throw Vault Throw M
Hurdles
series Put

X1 0.833 1.000 0.919 0.646 0.679 0.654 1.000 0.912 0.758

X2 0.866 0.693 1.000 0.904 0.893 0.737 0.683 0.583 0.667

X3 0.500 0.500 0.558 1.000 1.000 0.522 0.500 0.879 0.500

X4 0.722 0.871 1.000 0.585 0.500 1.000 0.556 1.000 1.000

X5 1.000 0.574 0.500 0.500 0.543 0.500 0.510 0.500 0.508

Table 4.1.4: The Grey relational coefficient

4.1.5. Determination of the relational grade for each contestant

The relation grade for each comparative series is determined by averaging the
Grey relation coefficient of each individual contest event. The Grey relation grade can
be expressed by:

P.E.S. College Of Engineering


16 Aurangabad
Grey relational analysis

Where n = 10

Substituting the coefficient of Grey relation into above equation, we can get each
contestant’s Grey relation grade, which are

Γ01= 0.832; Γ02= 0.769; Γ03= 0.646;

Γ04= 0.823; Γ05= 0.596.

This Grey relation grade is the overall performance for the decathlon.

4.1.6. Obtaining the ranking

Since we get Γ01 >Γ04 >Γ02 >Γ03 >

Γ05, the ranking order for these five contestants is A, D, B, C and E. Although Grey
relational analysis does agree well with the traditional method, it possesses an
overwhelming advantage to solve the problems that traditional method could not
overcome such as tie score dispute.

P.E.S. College Of Engineering


17 Aurangabad
Grey relational analysis

4.2. Applying Grey Relational Analysis to the Vendor Evaluation Model

This section will concentrate on an example to illustrate how to apply the Grey
multiple attributes to the vendor evaluation. Since variations of managerial conditions
among vendors must be accounted, and the requirements for their manufacturing
process are quite different, it is not our intention to develop an evaluation model with
considering all variations as mentioned above. Therefore, this paper will only provide
a feasibility study on the new model for vendor evaluation.

4.2.1. Implementation with evaluation factors and measure parameters

Since the evaluation factors are much dependent on the enterprise environment,
the top management of the enterprise may invite the members of the department of
purchasing, production control, and quality control to meet together, and decide the
appropriate evaluation factors and measure parameters for vendor evaluation.
Traditionally, quality, price, delivery date, quantity, and services are chosen to be
typical evaluation factors. The measure parameters for these five evaluation factors are
shown in Table 4.2.0.

Evaluation Quality Price Delivery date Quantity Services


factors
Measure Defects Quotation Delay rate Shortage Score

P.E.S. College Of Engineering


18 Aurangabad
Grey relational analysis

parameters rate
rejects/(gross no of delays/gross no of Five
Quantify
no of Unit price no of ships short./gross classification
criteria
batches) no of ships levels

Table 4.2.0: Evaluation factors and measure parameters for vendor evaluation

Regarding the services of evaluation factors, the corresponding measure


parameter can be determined by

1. Operated as better methods for defects elimination, and active involvement


with vendors and customers;

2. Delivery speed;

3 service condition. A qualitative ranking will be given by a review committee,


then convert these qualitative ranking into a rating scale of 1 to 5 (larger-the-better). A
more subjective overall fuzzy evaluation method may be used to get fuzzy number.

4.2.2. The corresponding weighting value for evaluation factors

Once the evaluation factor has been determined, we are in a position to find the
corresponding weighting value for each individual evaluation factor. The weighting
value determination can be done by Delphi Method or Eigenvector [14]. Table4. 2.1
show the corresponding weighting value for each evaluation factor.

4.2.3. Implementation with evaluation matrix

It is assumed that five vendors are able to supply certain raw materials. The
delivery record is rearranged by purchasing staff as shown in Table4.2.2. Using the

P.E.S. College Of Engineering


19 Aurangabad
Grey relational analysis

data from Table 4.2.2 an evaluation matrix can be formed. It is noted that evaluation
factor is indicated in attribute column, each vendor is comparative series.

4.2.4. Data rationalizing

The expected goal can be rationalized according to each attribute. A group of


assumptions are made for the following:

1. Quality: the quantifying value for reject (smaller-the-better) is 0;

2. Price: the quantifying value for unit price (smaller-the-better) is 0;

3. Delivery date: the quantifying value for delay (smaller-the-better) is 0;

4. Quantities: the quantifying value for shortage (smaller-the-better) is 0;

5. Services: the quantifying value for the service score (larger-the-better) is 5.

The measure value of each attribute is further standardized based on above-


mentioned expected goal [9]. The matrix for comparative series is obtained as shown
in Table 4.2.3.

4.2.5. Establishing standard series

According to our expected goal for each evaluation factor, an ideal standard
series (X0 = 1) is established in the last line in Table 4.

P.E.S. College Of Engineering


20 Aurangabad
Grey relational analysis

Evaluation Quality Price Delivery Quantity Services


factors date
Measure 0.30 0.20 0.15 0.15 0.20
parameter

Table4. 2.1: The corresponding weighting value for each evaluation factor

Measure Quality Price (Unit Delivery Quantity Services


Vendors (Defects) price) date (Delay (Shortage (Score)
rate) rate)
0.15 0.15 0.05 2
A 12
0.22 0.25 0.08 4
B 10
0.15 0.15 0.05 5
C 8
0.08 0.30 0.15 4
D 13
0.12 0.05 0.20 3
E 9

Table 4.2.2: Measurement value for each evaluation attributes


(Delivery data for a period of two years)

Item Quality Price Delivery date Quantity Services


Comparative series
X1 0.500 0.200 0.600 1.000 0.000

X2 0.000 0.600 0.200 0.800 0.667

P.E.S. College Of Engineering


21 Aurangabad
Grey relational analysis

X3 0.500 1.000 0.600 1.000 1.000

X4 1.000 0.000 0.000 0.383 0.667

X5 0.714 0.800 1.000 0.000 0.333

Standard series (X0) 1 1 1 1 1

Table 4.2.3: Data rationalizing

4.2.6 Determination of Grey relational coefficient for each evaluation factor

1. Calculate the maximum and minimum difference by:

The resulting maximum difference is one;

The resulting minimum difference is zero.

2. Calculate the Grey relational coefficient by:

By substituting the value of maximum and minimum difference into above


equations, the Grey relational coefficient for each candidate vendor is shown in Table
4.2.4.

P.E.S. College Of Engineering


22 Aurangabad
Grey relational analysis

Item
Comparative Delivery
Quality Price Quantity Quantity
series date

0.667
X1 0.555 0.714 1.000 1.000

0.500
X2 0.714 0.555 0.833 0.833

0.667
X3 1.000 0.714 1.000 1.000
1.000
X4 0.500 0.500 0.618 0.618

0.777
X5 0.833 1.000 0.500 0.500

Table4.2.4: The Grey relational coefficient

4.2.7. Determination of the relational grade for each candidate vendor


Using the corresponding weighting value for each evaluation factor (see
Table4.2.2), we can calculate the relational grade of each candidate vendor by:

P.E.S. College Of Engineering


23 Aurangabad
Grey relational analysis

Where β κ is the corresponding weighting value for each evaluation factor.


Substituting the relational coefficient from Table 5 into above equation 6, the Grey
relational coefficient can be obtained
Γ01 = 0.602; Γ02 = 0.601; Γ03 = 0.791;
Γ04 = 0.618; Γ05 = 0.659
This value of Grey relation is the overall performance that the enterprise requires.

4.2.8. Obtaining the ranking


Because of Γ03 >Γ05 >Γ04 >Γ01 > Γ02, the ranking order for all candidate vendors
is: (1) C; (2) E; (3) D; (4) A; (5) B. It is noted that the ranking order will change while
we change the weighting value for each evaluation factor. In other words, the owner of
an enterprise may select a suitable vendor based on his own requirements.

P.E.S. College Of Engineering


24 Aurangabad
Grey relational analysis

5. APPLICATION
Grey relational analysis in Grey theory had been largely applied to project
selection, prediction analysis, and performance evaluation. Hence grey relational
analysis is used in following application:
1. A Novel Prediction for Stock Index.
2. A Novel Prediction for Stock Index.
3. Airline Network Optimization.
4. In gas breakdown and var compensator finding.
5. Artificial Neural Network (ANN) to measure the impacts of key elements
on the forecasting performance of real estate investment trust.
6. Grey relational analysis has mainly applied to decision-making in
economics, medicine, computer science, social science, geometry,
chemistry, Management.
7. Empirical modeling of EDM parameters.
8. Supplier selection.
9. Sheet metal forming for multi-response quality characteristics.
10. For ranking material options.
11. Fault type identification on power transmission line.

P.E.S. College Of Engineering


25 Aurangabad
Grey relational analysis

6. ADVANTAGES

1. The major advantage of Grey theory is that it can handle both incomplete
information and unclear problems very precisely.
2. It serves as an analysis tool especially in cases when there is no enough
data.
3. Grey multiple attributes decision method is very accurate.
4. It can overcome the uncertainty arising from the measured parameters of
each attribute.
5. For new vendor evaluation, it is very convenient to perform overall
measurement based on each enterprise’s requirements. The overall
performance can determine the order for selecting the suitable vendors.
6. Grey relational analysis requires less data and can analyze many factors
that can overcome the disadvantages of statistics method.

P.E.S. College Of Engineering


26 Aurangabad
Grey relational analysis

7. DISADVANTAGES
1. It must have plenty of data.

2. Data distribution must be typical.

3. A few factors are allowed and can be expressed functionally.

P.E.S. College Of Engineering


27 Aurangabad
Grey relational analysis

8. CONCLUSION
Based on our study in this paper, the Grey relational analysis can be applied
project selection, prediction analysis, and performance evaluation. Through
quantitative analysis of Grey relation, it provides more accurate and subjective data.
Grey theory handles both incomplete information and unclear problems very precisely.

P.E.S. College Of Engineering


28 Aurangabad
Grey relational analysis

9. REFERENCES
 www.google.com
 http://search.yahoo.com/
 http://en.wikipedia.org/wiki/Special:Search
 http://www.journal.au.edu/ijcim/2003/sep03/ijcimv11n3_art5.
pdf
 http://knol.google.com
 http://www.ijcim.th.org/past_editions/2003V11N3/ijcimv11n3
_art4.pdf
 http://www.m-hikari.com/imf-password2007/13-16-
2007/chienhowuIMF13-16-2007.pdf

P.E.S. College Of Engineering


29 Aurangabad

You might also like