Probabilistic composition in quality management in the retail trade sector

Purpose – The purpose of this paper is to discuss the application of a method for combining multiple criteria based on the transformation of numerical evaluations into probabilities of preference. It is applied to compare failure risks and to measure efficiency in the retail trade sector. Design/methodology/approach – The main conceptual aspect of the method employed is taking into account uncertainty. Its other important feature is allowing for the combination of evaluations in terms of joint probabilities. This avoids the need of assigning weights to the criteria. In the context of failure modes and effects analysis (FMEA) it provides a probabilistic derivation for priority scores. An application of FMEA to the sector of services is discussed. Another area of application investigated is the assessment of efficiency. Findings – Details of the application of the probabilistic composition in the evaluation of modes of failure and in the comparison of operational efficiencies of retail stores are evidenced. Research limitations/implications – The study is limited to the retail market. Other factors might be considered in the reliability analysis and other inputs and outputs might be added to the productivity evaluation. The extension of the study to other cases and sectors is straightforward. Practical implications – Features of the evaluation of modes of failure and of productivity in the retail sector are revealed. Originality/value – The main contribution of this paper is showing how to use a probabilistic framework to measure efficiency in services management.