1. Problem Definition
In this blog, I would like to analyze the same case study as in my previous blog, choosing a car, using Analytic Hierarchy Process, and comparing the result.
2. Identify the Feasible of Alternatives
Based on previous research, I found top four candidates that will be select using Analytic Hierarchy Process.
Information Summary for Choice of Cars
3. Development of the Outcome for Alternative
The information above is arranged in a hierarchical tree as below:
In complex decision, costs (price) should be set aside until the benefits of the alternatives are evaluated.
4. Selection of Criteria
Perform pairwise comparison.
Pairwise comparison matrix
Normalized matrix of paired comparisons and calculation of priority weights (eigenvalue).
The consistency ratio (C.R.) for the comparison above is calculated to determine the acceptance of the priority weighting.
Based on Saaty’s empirical suggestion that a C.R. = 0.10 is acceptable.
To do that, we need Principal Eigen value that obtained from the summation of products between each element of Eigen value and the sum of columns of the reciprocal matrix.
5. Analysis and Comparison of the Alternatives
We do the same procedures for alternatives and the results are below:
The alternative ranking is the product between alternative ranking matrix and criteria ranking.
Alternative that having highest weights will be selected. Car C is the highest ranked Car.
6. Selection of the Preferred Alternative
After alternative ranking has been defined, we have to compare between benefits and costs (price) using benefit – cost ratio.
Benefit – Cost Analysis
Based on benefit – cost analysis, Car C has highest ratio.
7. Performance Monitoring and the Post Evaluation of Result
The result is same with the result of the non-compensatory models. In order to have more accurate result, pairwise comparison matrix can be done by surveying the experts or anyone who has good understanding of the problems.
1. Saaty, T. L. (2008). Decision making with the analytic hierarchy process. Int. J. Services Sciences.
2. Triantaphyllou, E., Mann, S. H. (1995). Using The Analytic Hierarchy Process for Decision Making in Engineering Applications: Some Challenges, International Journal of Industrial Engineering: Applications and Practice.
3. Haas, R. (2014). An Illustrated Guide to the Analytic Hierarchy Process. Retrieved from: https://mi.boku.ac.at/ahp/ahptutorial.pdf
4. Laksono, A. (2014). Vendor Evaluation. Retrieved from: https://kristalaace2014.wordpress.com/2014/05/14/w12_al_vendor-evaluation/
5. Auto Bild Magazine (2014). 289 edition, 44 – 49.
6. Wijanarka, W. (2015). W3_WW_ Choosing a Car Using Non-Compensatory Model | GARUDA AACE 2015. Retrieved from: https://garudaaace2015.wordpress.com/2015/03/19/w3_ww_-choosing-a-car-using-non-compensatory-model/