How to make a decision: The analytic hierarchy process
TL;DR: The Analytic Hierarchy Process (AHP) as discussed by the authors is a multicriteria decision-making approach in which factors are arranged in a hierarchic structure, and the principles and philosophy of the theory are summarized giving general background information of the type of measurement utilized, its properties and applications.
About: This article is published in European Journal of Operational Research.The article was published on 1990-09-05. It has received 7202 citations till now. The article focuses on the topics: Analytic network process & Analytic hierarchy process.
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TL;DR: In this article, a new method, called best-worst method (BWM) is proposed to solve multi-criteria decision-making (MCDM) problems, in which a number of alternatives are evaluated with respect to different criteria in order to select the best alternative(s).
Abstract: In this paper, a new method, called best-worst method (BWM) is proposed to solve multi-criteria decision-making (MCDM) problems. In an MCDM problem, a number of alternatives are evaluated with respect to a number of criteria in order to select the best alternative(s). According to BWM, the best (e.g. most desirable, most important) and the worst (e.g. least desirable, least important) criteria are identified first by the decision-maker. Pairwise comparisons are then conducted between each of these two criteria (best and worst) and the other criteria. A maximin problem is then formulated and solved to determine the weights of different criteria. The weights of the alternatives with respect to different criteria are obtained using the same process. The final scores of the alternatives are derived by aggregating the weights from different sets of criteria and alternatives, based on which the best alternative is selected. A consistency ratio is proposed for the BWM to check the reliability of the comparisons. To illustrate the proposed method and evaluate its performance, we used some numerical examples and a real-word decision-making problem (mobile phone selection). For the purpose of comparison, we chose AHP (analytic hierarchy process), which is also a pairwise comparison-based method. Statistical results show that BWM performs significantly better than AHP with respect to the consistency ratio, and the other evaluation criteria: minimum violation, total deviation, and conformity. The salient features of the proposed method, compared to the existing MCDM methods, are: (1) it requires less comparison data; (2) it leads to more consistent comparisons, which means that it produces more reliable results.
2,214 citations
TL;DR: This study illustrates the use of the Analytical Hierarchy Process (AHP) as a decision support model to help managers understand the trade-offs between environmental dimensions and examines how AHP can be incorporated into a comprehensive information system supporting Environmentally Conscious Purchasing (ECP).
1,034 citations
TL;DR: The Analytical Hierarchy Process (AHP) as mentioned in this paper is a potential decision-making method for use in project management, which is used as an example for the contractor prequalification problem.
981 citations
01 Mar 2013
TL;DR: The paper summarizes research on quantitative models for forward supply chains and thereby contributes to the further substantiation of the field and ends with suggestions for future research.
Abstract: More than 300 papers have been published in the last 15years on the topic of green or sustainable (forward) supply chains Looking at the research methodologies employed, only 36 papers apply quantitative models This is in contrast to, for example, the neighboring field of reverse or closed-loop supply chains where several reviews on respective quantitative models have already been provided The paper summarizes research on quantitative models for forward supply chains and thereby contributes to the further substantiation of the field While different kinds of models are applied, it is evident that the social side of sustainability is not taken into account On the environmental side, life-cycle assessment based approaches and impact criteria clearly dominate On the modeling side there are three dominant approaches: equilibrium models, multi-criteria decision making and analytical hierarchy process There has been only limited empirical research so far The paper ends with suggestions for future research
856 citations
TL;DR: An application of the Analytic Hierarchy Process (AHP) for selecting the best maintenance strategy for an important Italian oil refinery (an Integrated Gasification and Combined Cycle plant) is described.
669 citations
References
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Journal Article•
TL;DR: The theory of information as discussed by the authors provides a yardstick for calibrating our stimulus materials and for measuring the performance of our subjects and provides a quantitative way of getting at some of these questions.
Abstract: First, the span of absolute judgment and the span of immediate memory impose severe limitations on the amount of information that we are able to receive, process, and remember. By organizing the stimulus input simultaneously into several dimensions and successively into a sequence or chunks, we manage to break (or at least stretch) this informational bottleneck. Second, the process of recoding is a very important one in human psychology and deserves much more explicit attention than it has received. In particular, the kind of linguistic recoding that people do seems to me to be the very lifeblood of the thought processes. Recoding procedures are a constant concern to clinicians, social psychologists, linguists, and anthropologists and yet, probably because recoding is less accessible to experimental manipulation than nonsense syllables or T mazes, the traditional experimental psychologist has contributed little or nothing to their analysis. Nevertheless, experimental techniques can be used, methods of recoding can be specified, behavioral indicants can be found. And I anticipate that we will find a very orderly set of relations describing what now seems an uncharted wilderness of individual differences. Third, the concepts and measures provided by the theory of information provide a quantitative way of getting at some of these questions. The theory provides us with a yardstick for calibrating our stimulus materials and for measuring the performance of our subjects. In the interests of communication I have suppressed the technical details of information measurement and have tried to express the ideas in more familiar terms; I hope this paraphrase will not lead you to think they are not useful in research. Informational concepts have already proved valuable in the study of discrimination and of language; they promise a great deal in the study of learning and memory; and it has even been proposed that they can be useful in the study of concept formation. A lot of questions that seemed fruitless twenty or thirty years ago may now be worth another look. In fact, I feel that my story here must stop just as it begins to get really interesting. And finally, what about the magical number seven? What about the seven wonders of the world, the seven seas, the seven deadly sins, the seven daughters of Atlas in the Pleiades, the seven ages of man, the seven levels of hell, the seven primary colors, the seven notes of the musical scale, and the seven days of the week? What about the seven-point rating scale, the seven categories for absolute judgment, the seven objects in the span of attention, and the seven digits in the span of immediate memory? For the present I propose to withhold judgment. Perhaps there is something deep and profound behind all these sevens, something just calling out for us to discover it. But I suspect that it is only a pernicious, Pythagorean coincidence.
19,835 citations
Book•
01 Jan 1956
TL;DR: The theory provides us with a yardstick for calibrating the authors' stimulus materials and for measuring the performance of their subjects, and the concepts and measures provided by the theory provide a quantitative way of getting at some of these questions.
Abstract: First, the span of absolute judgment and the span of immediate memory impose severe limitations on the amount of information that we are able to receive, process, and remember. By organizing the stimulus input simultaneously into several dimensions and successively into a sequence or chunks, we manage to break (or at least stretch) this informational bottleneck. Second, the process of recoding is a very important one in human psychology and deserves much more explicit attention than it has received. In particular, the kind of linguistic recoding that people do seems to me to be the very lifeblood of the thought processes. Recoding procedures are a constant concern to clinicians, social psychologists, linguists, and anthropologists and yet, probably because recoding is less accessible to experimental manipulation than nonsense syllables or T mazes, the traditional experimental psychologist has contributed little or nothing to their analysis. Nevertheless, experimental techniques can be used, methods of recoding can be specified, behavioral indicants can be found. And I anticipate that we will find a very orderly set of relations describing what now seems an uncharted wilderness of individual differences. Third, the concepts and measures provided by the theory of information provide a quantitative way of getting at some of these questions. The theory provides us with a yardstick for calibrating our stimulus materials and for measuring the performance of our subjects. In the interests of communication I have suppressed the technical details of information measurement and have tried to express the ideas in more familiar terms; I hope this paraphrase will not lead you to think they are not useful in research. Informational concepts have already proved valuable in the study of discrimination and of language; they promise a great deal in the study of learning and memory; and it has even been proposed that they can be useful in the study of concept formation. A lot of questions that seemed fruitless twenty or thirty years ago may now be worth another look. In fact, I feel that my story here must stop just as it begins to get really interesting. And finally, what about the magical number seven? What about the seven wonders of the world, the seven seas, the seven deadly sins, the seven daughters of Atlas in the Pleiades, the seven ages of man, the seven levels of hell, the seven primary colors, the seven notes of the musical scale, and the seven days of the week? What about the seven-point rating scale, the seven categories for absolute judgment, the seven objects in the span of attention, and the seven digits in the span of immediate memory? For the present I propose to withhold judgment. Perhaps there is something deep and profound behind all these sevens, something just calling out for us to discover it. But I suspect that it is only a pernicious, Pythagorean coincidence.
16,902 citations
"How to make a decision: The analyti..." refers background in this paper
...The reader may know about the experimental findings of the psychologist George Miller in the 1950's [4]....
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TL;DR: A method of scaling ratios using the principal eigenvector of a positive pairwise comparison matrix is investigated, showing that λmax = n is a necessary and sufficient condition for consistency.
8,117 citations
"How to make a decision: The analyti..." refers background in this paper
...The judgments are given in the form of paired comparisons [6,7, 8 ]• One of the uses of a hierarchy is that it allows us to focus judgment separately on each of several properties essential for making a sound decision• The most effective way to concentrate judgement is to take a pair of elements and compare them on a single property without concern for other properties or other elements....
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...The reader interested in pursuing the subject further should consult references [3,7, 8 ,13,15]....
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Book•
01 Jan 1965
TL;DR: Theoretical background Perturbation theory Error analysis Solution of linear algebraic equations Hermitian matrices Reduction of a general matrix to condensed form Eigenvalues of matrices of condensed forms The LR and QR algorithms Iterative methods Bibliography.
Abstract: Theoretical background Perturbation theory Error analysis Solution of linear algebraic equations Hermitian matrices Reduction of a general matrix to condensed form Eigenvalues of matrices of condensed forms The LR and QR algorithms Iterative methods Bibliography Index.
7,422 citations
Book•
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01 Jan 1957
3,909 citations
"How to make a decision: The analyti..." refers background in this paper
...particularly "irrelevant" ones, should not cause rank reversal [ Luce and Raiffa 1957 ]....
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