Analytic Hierarchy

Process
Submitted by:- Group 1
Ashish M Verma
Deepankar
Kuldeep Singh
Srirangam Nipun
Tuhami Amim
INTRODUCTION
 Developed by Thomas L. Saaty in 1970s
 AHP is a structured technique in organizing and analysing
complex descions.
 Best known and widely used for Multi Criteria Analysis
(MCA) approach
 Used for comparison of different alternatives.
 Tool for final decision making.
Applications
 Used in the Integrated manufacturing (Putrus, 1990)
 inthe evaluation of technology investment decisions
(Boucher and McStravic, 1991
 in flexible manufacturing systems(Wabalickis, 1988)
 layout design (Cambron and Evans, 1991)
 Various engineering problems (Wang and Raz,1991)
Analytical Hierarchy Process
 Step 1:- Define Objective
 Step 2:- structure elements in criteria, sub- criteria,
alternatives etc.
 step 3:- make a pairwise comparison of elements in each group
 Step 4:- Calculate weighting and consistency ratio
 Step 5:- Evaluate alternatives according weightings
 Step 6:- Get ranking
Structure of decision problem under
consideration
 Objective :- Buy a gadget( smartphone or Mp3 player etc)
 Criteria Color Pink, blue, green , red

memory 8MB, 16MB, 32MB, 64MB

Delivery Immediate, 5 days, 4 week

 Models (alternatives) 1. pink, 32MB, immediate, 120$

2. BLUE, 16MB, immediate, 120$

3. Black, 32MB, 1Week, 150$

4. red, 64 MB, 4 WEEK, 150$

Evaluate Alternatives
Gadgets to buy

color
Memory Delivery
17%
43% 40%

Pink 19% 2.2%

8MB 6% 2% IMMEDIATE 46% 18%

blue 12% 2%
16MB 7% 3% 0NE WEEK 43% 17%

green 5% 0.9%
32MB 43% 19% 4 WEEK 12% 5%
red 49% 8.9%

64MB 44% 19%

Black 22% 3.7%
 ALTERNATIVES BENEFITS
Model1- pink 32MB immediate 39%
Model2- Blue 16MB immediate 23%
Model3- Black 32MB 1week 40%
Model4- Red 64MB 4week 32%

Hence, the AHP gives the result made between the alternatives on the basis of
eigen vector and consistency index.