Analytical Hierarchy Process

AHP is especially suitable for complex decisions which involve the comparison of decision elements which are difficult to quantify. It is based on the assumption that when faced with a complex decision the natural human reaction is to cluster the decision elements according to their common characteristics.

 

It involves building a hierarchy (Ranking) of decision elements and then making comparisons between each possible pair in each cluster (as a matrix). This gives a weighting for each element within a cluster (or level of the hierarchy) and also a consistency ratio (useful for checking the consistency of the data).

 

The Analytical Hierarchy Process Model was designed by TL Saaty as a decision making aid.

  • Saaty TL, 1980, The Analytic Hierarchy Process, NY, McGraw Hill.

Dr Thomas Saaty, has recently completed a next-generation version of the software called Decision Lens. For more information see the websitewww.decisionlens.com

Expert Choice Inc. another company originally founded by Thomas Saaty (www.expertchoice.com) has been the leader in AHP/Decision Analysis for the past 23 years and currently have over 100 universities worldwide using/teaching AHP.

 

References

  • Saaty TL, 1980, The Analytic Hierarchy Process, NY, McGraw Hill.

 

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