Difference between revisions of "Analytical Hierarchy Process (AHP)"
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− | 1. Setting up a decision hierarchy by decomposing the decision problem into a hierarchy of interrelated elements. Each level must be linked to the next-higher level and adjacent elements within one level must not be too disparate. | + | 1. Setting up a decision hierarchy by decomposing the decision problem into a hierarchy of interrelated elements. Each level must be linked to the next-higher level and adjacent elements within one level must not be too disparate. |
− | <li>2. Generating input data consisting of comparative judgement by pairwise comparisons of decision elements. | + | <li>2. Generating input data consisting of comparative judgement by pairwise comparisons of decision elements. |
− | <li>3. Synthesizing the judgments and estimate the relative weights by using the "eigenvalue" method to generate a derived ratio scale that reflects the local priorities of the elements in the hierarchy. | + | <li>3. Synthesizing the judgments and estimate the relative weights by using the "eigenvalue" method to generate a derived ratio scale that reflects the local priorities of the elements in the hierarchy. |
<li>4. Determination of the aggregate relative weights of the decision elements to arrive at a set of rating for the decision alternatives. | <li>4. Determination of the aggregate relative weights of the decision elements to arrive at a set of rating for the decision alternatives. | ||
</li> | </li> |
Revision as of 17:05, 22 September 2014
The Analytic Hierarchy Process (AHP) developed by Saaty (1977, 1980) is a robust and flexible multi-criteria decision analysis technique based on the prior articulation of preferences by the decision maker. It allows to analyze multi-criteria decision problems with both qualitative and quantitative aspects.
The AHP can be summarized as a four-step procedure:
Further references:
- International Journal of the Analytic Hierarchy Process An online journal about MCDM applications using the AHP