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Analytic Hierarchy Process - AHP

Analytic Hierarchy Process - AHP. AHP is comprehensive, logical and structured framework. Support do decision making. Allows to improve understanding of complex decisions by decomposing the problem. AHP Procedure. IDENTIFICATION of decision problem Form a HIERARCHY

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Analytic Hierarchy Process - AHP

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  1. Analytic Hierarchy Process - AHP • AHP is comprehensive, logical and structured framework • Support do decision making • Allows to improve understanding of complex decisions by decomposing the problem

  2. AHP Procedure • IDENTIFICATION of decision problem • Form a HIERARCHY • GOAL ON THE TOP (Fundamental Objective) • DECOMPOSE into sub-goals • FURTHER DECOMPOSITION as necessary • IDENTIFY CRITERIA (attributes) to measure achievement of goals • EVALUATION • CALCULATING overall PRIORITY

  3. Example

  4. AHP Procedure – Judgments and Comparisons • Numerical Representation • Relationship between two elements that share a common parent in the hierarchy • Comparisons ask 2 questions: – Which is more important with respect to the criterion? – How strongly? • Matrix shows results of all such comparisons • Typically uses a 1-9 scale

  5. 1 -9 Scale Equal Importance Moderate Importance Strong Importance Very Strong Importance Extreme Importance For compromises between the above Reciprocals of above In comparing elements i and j - if i is 3 compared to j - then j is 1/3 compared to i

  6. A1 A2 ... An A1 t1/t1 t1/t2 ... t1/tn A2 t2/t1 t2/t2 ... t2/tn ... ... ... ... ... An tn/t1 tn/t2 ... tn/tn Example

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