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Ahp decision making example
Ahp decision making example






ahp decision making example

The value of the method is not only in finding the optimal result, but intermediate steps are clearly distinguishable, as well as the elements that contribute to the result the most. This preference-based method shows the best option. Why not you?ĪHP - Analytic Hierarchy Process (or Analytical Hierarchy Process) is a mathematical method.Ĭompared to other decision making methods and techniques AHP enables you, as the decision maker, to compare the significance of each alternative in relation to another one individually and within a criterion you find relevant. Numerous institutions and companies use it in decision making process. The method is still one of the most appreciated and widely used methods. Thomas Saaty in the 1970ies while he was a professor at the Wharton School of Business. Created in a way to reflect the way people think, AHP was developed by Dr. By reducing complex decision making to comparisons between pairs of alternatives and by synthesizing results AHP helps not only in decision making but leads to a rational decision. In the same way, you compare criteria according to your own preferences and their intensity.ĪHP is a strong and flexible decision making technique which helps in setting priorities and reaching optimal decisions in situations when quantitative and qualitative aspects have already been taken into consideration. It is based on the comparison of pairs of alternative solutions during which all alternatives are compared to one another and you, as a decision maker, express intensity and the level of preference towards one alternative in relation to the other according to the criteria you find important.

ahp decision making example

The method is called Analytic Hierarchy Process (or Analytical Hierarchy Process) - AHP The problem appears when one has to choose only one alternative which satisfies the entire set of our personal criteria.ĭid you know that there is one simple method that can help people make that choice and which takes into consideration things like your perception, intuition, rational and irrational, and the inconsistency of choosing among several options?

ahp decision making example

Have you ever been in a situation when A is much better than B, B is slightly better than CĪnd C is better than A on the one hand, but on the other hand the situation is opposite? Or A is two times better then B, B is three times better than C, and A and C are equally good? If not, than this is not a web site for you.ĭecision making is an evaluation process including alternatives which are all satisfying a certain set of criteria. Moreover, what about those criteria depending on our own belief, taste or standards?

ahp decision making example

What about the criteria that can not be expressed in such way? For example, quality, design, reliability, suitableness, pleasure etc. For example, price, weight, height and many other values can be expressed in units of measurement. For some decisions comparative process is simple and it can be expressed in units of measurement. In the decision making process we have our own criteria. There are many decisions we make every day which are not very important, but about some of them we think more thoroughly because they are more important than others. We have to make decisions on a daily basis.








Ahp decision making example