Using AHP for resource allocation problems

Analytic hierarchy process : An overview of applications

Abstract: This article presents a literature review of the applications of Analytic Hierarchy Process (AHP). AHP is a multiple criteria decision-making tool that has been used in almost all the applications related with decision-making. Out of many different applications of AHP, this article covers a select few, which could be of wide interest to the researchers and practitioners. The article critically analyses some of the papers published in international journals of high repute, and gives a brief idea about many of the referred publications. Papers are categorized according to the identified themes, and on the basis of the areas of applications. The references have also been grouped region-wise and year-wise in order to track the growth of AHP applications. To help readers extract quick and meaningful information, the references are summarized in various tabular formats and charts. A total of 150 application papers are referred to in this paper, 27 of them are critically analyzed. It is hoped that this work will provide a ready reference on AHP, and act as an informative summary kit for the researchers and practitioners for their future work.

A review of applications of Analytic Hierarchy Process in operations management

Abstract: The purpose of this paper is to review the literature on the applications of the Analytic Hierarchy Process (AHP) in operations management and suggest possible gaps from the point of view of researchers and practitioners. This paper systematically categorises the published literature from 1990 to 2009 in 291 peer reviewed journals articles (searched via Emerald, Ingenta, MetaPress, ProQuest, and ScienceDirect) and then reviews and analyses them methodologically. Our analysis has revealed that a significant number of AHP applications are found when problems require considerations of both quantitative and qualitative factors (e.g., socioeconomic operations decisions). AHP has been largely applied to macro (complex and real) and people (managerial–subjective) oriented problems. The most addressed decision themes are product and process design and, managing the supply chain. A majority of AHP applications are application or case study oriented and only a few papers aimed at contributing to AHP modelling before applying to practical problems. Our review has found that significant research gap exists in the application of AHP in the areas of forecasting, layout of facilities and managing stocks. This paper presents a comprehensive listing of AHP applications in operations management and develops a framework for identifying the decision areas that have better research gaps to be studied by future researchers.

A Competitive Analysis of Chinese Container Ports Using the Analytic Hierarchy Process

Abstract: Over 20% of the world's container traffic occurs from Asian ports. China's entry into the market has significantly stimulated this process. Since China adopted its liberalised economic policy in the 1970s, its economy has grown at an average rate of 10% or more per annum. In particular, the efforts and investments that have been poured into its container ports are conspicuous, since approximately 90% of the country's international trade (in volume terms) is handled through maritime transport. Chinese ports (especially container ports), however, have a number of problems, such as bureaucratic administration, insufficient facilities, the lack of service and commercial orientation and inefficient operations. This paper aims to identify the competitiveness of container ports in China including Hong Kong from the outsiders’ perspective, using the framework of the Analytic Hierarchy Process, and to provide managerial and strategic implications. As expected, the findings reveal that, in terms of competitiveness, Hong Kong, Shanghai and Yantian rank first, second and third, respectively.

DS/AHP method: A mathematical analysis, including an understanding of uncertainty

Abstract: The analytic hierarchy process (AHP) was developed to aid decision makers to rank or sort information based on a number of criteria. A recent advance is the DS/AHP method which incorporates the Dempster–Shafer theory of evidence with AHP. This method allows judgements on groups of decision alternatives (DA) to be made, it also offers a measure of uncertainty in the final results. In this paper a mathematical analysis of DS/AHP is included, constructing the functional form of the preference weightings given to groups of DA. These functions allow an understanding of the appropriateness of the rating scale values used in the DS/AHP method, through evaluating the range of uncertainty able to be expressed by the decision maker.

Energy resource allocation incorporating qualitative and quantitative criteria: An integrated model using goal programming and AHP

Abstract: Energy resource allocation presents a multi-criteria decision making problem with the criteria being quantitative and/or qualitative. Solving such a problem requires an integrated approach. In this paper, an integrated model using goal programming and the Analytic Hierarchy Process (AHP) has been developed for energy resource allocation. It incorporates nine quantitative and three qualitative criteria. The model has been applied to the household sector of Madras, India. A detailed sensitivity analysis has also been carried out. Three additional scenarios have been developed. Use of the model suggested: natural gas, fuelwood and solar thermal for cooking; biogas and electricity generated from fuelwood for water pumping; and all decentralized electricity generation technologies for lighting and operating household appliances. Grid electricity was perferred only for lighting.

The Analytic Hierarchy Process

Abstract: This chapter provides an overview of Analytic Hierarchy Process (AHP), which is a systematic procedure for representing the elements of any problem hierarchically. It organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pair-wise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy. These judgments are then translated to numbers. The AHP includes procedures and principles used to synthesize the many judgments to derive priorities among criteria and subsequently for alternative solutions. It is useful to note that the numbers thus obtained are ratio scale estimates and correspond to so-called hard numbers. Problem solving is a process of setting priorities in steps. One step decides on the most important elements of a problem, another on how best to repair, replace, test, and evaluate the elements, and another on how to implement the solution and measure performance.

Decisions with Multiple Objectives: Preferences and Value Trade-Offs

Abstract: Many of the complex problems faced by decision makers involve multiple conflicting objectives. This book describes how a confused decision maker, who wishes to make a reasonable and responsible choice among alternatives, can systematically probe his true feelings in order to make those critically important, vexing trade-offs between incommensurable objectives. The theory is illustrated by many real concrete examples taken from a host of disciplinary settings. The standard approach in decision theory or decision analysis specifies a simplified single objective like monetary return to maximise. By generalising from the single objective case to the multiple objective case, this book considerably widens the range of applicability of decision analysis.

Multi-Objective Decision Analysis with Engineering and Business Applications

Abstract: Keywords: Decision-Making ; multiobjective analysis Reference Record created on 2005-06-20, modified on 2016-08-08

An extension of the analytic hierarchy process for industrial R&D project selection and resource allocation

Abstract: The research and development project selection decision is concerned with the allocation of resources to a set of proposals for scientific and engineering activities. The project selection and resource allocation process can be viewed as a multiple-criteria decision-making problem, within the context of the long-range and strategic planning process of the firm. The purpose of this paper is explore the applicability of an extension of the Analytic Hierarchy Process (AHP) for priority setting and resource allocation in the industrial R&D environment. In this paper, an AHP modeling framework for the R&D project selection decision is developed, and is linked to a spreadsheet model to assist in the ranking of a large number of project alternatives. Next, cost-benefit analysis and integer programming are used to assist in the resource allocation decision. The paper concludes with an evaluation of the suitability of this approach as an expert support system, and directions for future research and testing.