Y. Shi et al. (Eds.): MCDM 2009, CCIS 35, pp. 761–768, 2009. © Springer-Verlag Berlin Heidelberg 2009 A Revised VIKOR Model for Multiple Criteria Decision Making - The Perspective of Regret Theory Jih-Jeng Huang 1 , Gwo-Hshiung Tzeng 1 , and Hsiang-Hsi Liu 2 1 Department of Business and Entrepreneurial Administration, Kainan University, Taoyuan, Taiwan jjhuang@mail.knu.edu.tw, ghtzeng@mail.knu.edu.tw 2 Graduate Institute of international Business, National Taipei University, Sansia, Taiwan hsiang@mail.ntpu.edu.tw Abstract. VIKOR is one of the multiple criteria decision making (MCDM) models to determine the preference ranking from a set of alternatives in the presence of conflicting criteria. The justification of VIKOR is to use the con- cept of the compromise programming to determine the preference ranking by the results of the individual and group regrets. However, VIKOR has a critical problem in deriving the preference ranking of alternative and this issue will be discussed later. In this paper, the perspective of regret theory is applied to ex- plain the content of VIKOR and one revised model of VIKOR is proposed base on the concept of regret theory. Then, two examples are given to justify the proposed model and compare it with VIKOR and the regret model. Keywords: multiple criteria decision making (MCDM); VIKOR; compromise programming; regret model; preference ranking. 1 Introduction Decision-making process involves a series of identifying the problems, constructing the preferences, evaluating the alternatives, and determining the best alternative [1-3]. Decision making is extremely intuitive while considering the single criterion prob- lems, since we only need to choose the alternative with the highest preference rating. However, when decision makers evaluate the alternatives with the multiple criteria, many problems, such as weights of criteria, preference dependence, and conflicts among criteria, seem to complicate the decision problems and should be overcome by more sophisticate methods. The field of multiple criteria decision making (MCDM) concerns the problems that how decision makers should ideally do when facing multiple conflicting criteria. There are considerable methods and models have been proposed for various MCDM problems with respect to different perspectives and theories. In this paper, we focus on the VIKOR method which was proposed by [4,5] to determine the ranking and select from a set of alternatives in the presence of conflicting criteria. The major char- acteristic of VIKOR is it introduces the multiple criteria ranking index based on the