Analytical Hierarchy Proccess (Ahp) : - Alternative Solution - Structuring - Alternative Selection

ANALYTICAL HIERARCHY PROCCESS (AHP)
- ALTERNATIVE SOLUTION
- STRUCTURING
- ALTERNATIVE SELECTION
Department of Industrial Engineering

Faculty of Engineering
University of Surabaya
Review week 2
Weighting Pairwise
Consistency
Method Comparison
TODAY’S TOPICS
1. Practice
2. Alternative Solution
3. Structuring Alternative-Criteria-Goal
4. Alternative Selection
5. Expert Choice
Practice
• Describe your own MCDM problem!
• Identify your goal and criteria!
• Using pair wise comparison, weight your criteria!
• Check your consistency in doing pair wise
comparison!
• If your pair wise comparison will be assessed not
consistent, then re-assess your preference of
criteria!
Alternative Solution
• Alternative solution is kind of choices to solve the
problem
• In our complex world system, we are forced to cope with
more problems than we have the resources to handle.
– What we need is not a more complicated way of thinking but
a framework that will enable us to think of complex problems
in a simple way.
 The AHP provides such a framework that enables us to make

effective decisions on complex issues by simplifying and
expediting our natural decision-making processes.
Alternative Solution
• Humans are not often logical creatures.
– Most of the time we base our judgments on
hazy impressions of reality and then use logic to
defend our conclusions.
The AHP organizes feelings, intuition, and logic

in a structured approach to decision making.
Analytical Hierarchy Process
• The analytic hierarchy process (AHP) was developed by
Thomas L. Saaty.
– Saaty, T.L., The Analytic Hierarchy Process, New York: McGraw-
Hill, 1980
• The AHP is designed to solve complex problems

involving multiple criteria.
• An advantage of the AHP is that it is designed to handle

situations in which the subjective judgments of
individuals constitute an important part of the decision
process.
• Basically the AHP is a method of (1) breaking down a
complex, unstructured situation into its component
parts; (2) arranging these parts, or variables into a
hierarchic order; (3) assigning numerical values to
subjective judgments on the relative importance of
each variable; and (4) synthesizing the judgments to
determine which variables have the highest priority
and should be acted upon to influence the outcome
of the situation.
Three key steps of the AHP:
1. Decomposing the problem into a hierarchy – one
overall goal on the top level, several decision
alternatives on the bottom level and several criteria
contributing to the goal
2. Comparing pairs of alternatives with respect to each

criterion and pairs of criteria with respect to the
achievement of the overall goal
3. Synthesising judgements and obtaining priority

rankings of the alternatives with respect to each
criterion and the overall priority ranking for the problem
Stucturing Alternative-Criteria-Goal
Structuring a hierarchy:
Selecting goal
best Location
Costs Market Transport criteria
inital costs of
costs energy subcriteria
Berlin Frankfurt alternatives

Pairwise Comparison Matrix
Pairwise comparisons:
to A1 A2 A3
Alternative 1 (A1) a11 a12 a13

Alternative 2 (A2) a21 a22 a32 Pairwise Comparison Matrix A = ( aij )
Alternative 3 (A3) a31 a32 a33
Values for aij :

Verbal judgement of
Numerical values
preferences
1 equally important
2,4,6,8 => intermediate
3 weakly more important values
5 strongly more important
7 very strongly more important
reciprocals => reverse
comparisons
9 absolutely more important
Pairwise Comparison Matrix
For all i and j it is necessary that:
(a) aii = 1 A comparison of criterion i with itself:

equally important
(b) aij = 1/ aji aji are reverse comparisons and must be the
reciprocals of aij
costs market transport

Pairwise
costs 1 1/2 1/3
comparisons of the
criteria: market 2 1 1/3
transport 3 3 1
Pairwise Comparisons Matrix
costs Berlin Frankfurt
Pairwise comparisons matrix with
Berlin 1 2
respect to criterion costs:
Frankfurt 1/2 1
market Berlin Frankfurt

respect to criterion market: Berlin 1 1/4
Frankfurt 4 1
transport Berlin Frankfurt

Berlin 1 1/2
respect to criterion transport:
Frankfurt 2 1
Alternative Selection
• The overall priority of an alternative is computed by mul-
tiplying its priorities w.r.t each criterion with the priority of the
corresponding criterion and summing up the numbers:
Priority Alternative i =
 (Priority Alternative i w.r.t. Criterion j)*
*(Priority Criterion j)
• Priority(Berlin)=0.67*0.16+0.20*0.25+0.33*0.59=0.35.
Priority(Frankfurt)=0.65, thus Frankfurt should be selected.
Criteria Overall
Costs Market Transport
0.16 0.25 0.59
Berlin 0.67 0.20 0.33 0.35
Frankfurt 0.33 0.80 0.67 0.65
THANK YOU…
0 0
C E 20
C H OI
P E RT
Y E X
TR
E T ’S
L

Analytical Hierarchy Proccess (Ahp) : - Alternative Solution - Structuring - Alternative Selection

Uploaded by

Copyright:

Available Formats

Analytical Hierarchy Proccess (Ahp) : - Alternative Solution - Structuring - Alternative Selection

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Analytical Hierarchy Proccess (Ahp) : - Alternative Solution - Structuring - Alternative Selection

Uploaded by

Copyright:

Available Formats

ANALYTICAL HIERARCHY PROCCESS (AHP)

Department of Industrial Engineering

 The AHP provides such a framework that enables us to make

The AHP organizes feelings, intuition, and logic

• The AHP is designed to solve complex problems

• An advantage of the AHP is that it is designed to handle

2. Comparing pairs of alternatives with respect to each

3. Synthesising judgements and obtaining priority

Costs Market Transport criteria

Berlin Frankfurt alternatives

Alternative 1 (A1) a11 a12 a13

Values for aij :

(a) aii = 1 A comparison of criterion i with itself:

costs market transport

market Berlin Frankfurt

transport Berlin Frankfurt

You might also like

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.