What is Analytic Hierarchy Process (AHP)?
Analytic Hierarchy Process (AHP) is a structured technique for decision-making. It is used to analyze and compare complex decisions with multiple criteria. The process is based on the decision maker’s judgment of the relative importance of each criterion. AHP helps to prioritize and compare alternatives and make informed decisions.
How does AHP work?
AHP works by breaking down a complex decision into multiple criteria and sub-criteria. These criteria are then compared and prioritized using a pairwise comparison process. The pairwise comparison process is based on the decision maker’s judgment of the relative importance of each criterion.
Examples of AHP
AHP can be used in a variety of situations, such as:
- Choosing a vacation destination
- Deciding between job offers
- Evaluating an investment opportunity
- Selecting a new car
For example, when selecting a new car, the decision maker could use AHP to identify and prioritize the criteria for the decision. The criteria could include reliability, fuel economy, safety, price, and aesthetics. The decision maker would then use the pairwise comparison process to compare and prioritize each criterion.
AHP and Multi-criteria Decision Making
AHP is an effective tool for multi-criteria decision-making. It is based on the decision maker’s judgments and helps to evaluate complex decisions with multiple criteria. AHP is a valuable tool for making informed decisions and should be considered when making complex decisions.