The analytical network process (ANP) is a further development of AHP. The problem is then evaluated using the simple formula (B*O)/(C*R) (multiplicative) or (B+O)-(C-R) (additive). 1 AHP hierarchy for solving a decision problem Complex decision problems and networksįor complex decision problems a two-layer model can be introduced, in which hierarchies are examined separately by the criteria Benefits (B), Opportunities (O), Costs (C) and Risks (R). In the solution process itself each element is compared by pairs in each category and sub-category, and the criteria are weighted.įig. We can structure the problem hierarchically as shown in Fig. Model D – red, 64 Gbyte, 1 month wait, USD 150.Model C – black, 32 Gbyte, 1 week wait, USD 150.Model B – blue, 16 Gbyte, immediate availability, USD 120.Model A – pink, 32 Gbyte, immediate availability, USD 120.I have the choice of colors (pink, blue, green, black, red), storage (8, 16, 32, 64 Gbyte), and availability (immediate, 1 week, 1 month). To demonstrate how the method works, let us take a simple example. Initial studies show that this increases the reliability of identification from 55 % to 83 % and reduces the false identification rate from 20 % to 17 %, and that the consistency index is a good measure of the reliability of statements by witnesses. AHP is then used to evaluate the results. One of the most interesting fields and a very current application of AHP is the identification of suspects by witnesses in criminal cases, where the candidates for identification are not shown all together or sequentially, but in pairs. Validation of the method in practical testing shows surprisingly good agreement with actual measured values.
#Ahp decision making central models free#
assigning points) or the free assignment of priorities. The core of AHP is the comparison of pairs instead of sorting (ranking), voting (e.g. Sometimes alternatives are already implicitly defined by the problem and it is sufficient merely to define the priorities. Evaluate alternatives according to the priorities identified – what alternative optimum solution is there to the decision problem?.Calculate the priorities and a consistency index – were my comparisons logical and consistent?.blue or green? Which do I prefer, and by how much do I prefer one or the other color? Pair comparison of criteria in each category – e.g.Structure the decision problem in a hierarchy – what are the categories and criteria that figure into my decision?.Define the goal of the decision – what do I want to decide, for what purpose, and what are my alternatives?.The basic steps in the solution of a decision problem using AHP are quite simple: Mathematically, the method is based on the solution of an “eigenvalue problem” – but this is mentioned here only tangentially and is not meant to dissuade anyone. In AHP, values like price, weight, or area, or even subjective opinions such as feelings, preferences, or satisfaction, can be translated into measurable numeric relations. AHP stands for analytic hierarchy process, and belongs to the multi-criteria decision making methods (MCDM) group. Called AHP, it is now used around the world in many different fields. Saaty, in which he describes his method for the mathematical treatment of decision problems, which he developed in the 70s. Or “Mathematical Principles of Decision Making” is the title of a book by Prof. Read my simple write-up about AHP for people, who have not heared about the method. AHP stands for analytic hierarchy process, and belongs to the multi-criteria decision making methods (MCDM).
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