Analytical Hierarchy Process (AHP)

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:

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. 2. Generating input data consisting of comparative judgement by pairwise comparisons of decision elements. 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. 4. Determination of the aggregate relative weights of the decision elements to arrive at a set of rating for the decision alternatives.

Further references:

• International Journal of the Analytic Hierarchy Process An online journal about MCDM applications using the AHP