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"Analytical Hierarchy Process (AHP) is an approach to decision making that involves structuring multiple choice criteria into a hierarchy, assessing the relative importance of these criteria, comparing alternatives for each criterion, and determining an overall ranking of the alternatives", as defined by DSS Resources.
The concept of AHP was developed, amongst other theories, by Thomas Saaty, an American mathematician working at the University of Pittsburgh.
By organizing and assessing alternatives against a hierarchy of multifaceted objectives, AHP provides a proven, effective means to deal with complex decision making. Indeed, AHP allows a better, easier, and more efficient identification of selection criteria, their weighting and analysis. Thus, AHP reduces drastically the decision cycle.
AHP helps capture both subjective and objective evaluation measures, providing a useful mechanism for checking the consistency of the evaluation measures and alternatives suggested by the team thus reducing bias in decision making.
AHP allows organizations to minimize common pitfalls of decision making process, such as lack of focus, planning, participation or ownership, which ultimately are costly distractions that can prevent teams from making the right choice.
AHP is very useful when the decision-making process is complex, for instance, by being unstructured. Indeed, when the decision cycle involves taking into account a variety of multiple criteria which rating is based on a multiple-value choice, AHP splits the overall problem to solve into as many evaluations of lesser importance, while keeping at the same time their part in the global decision.
To do so, iterating from top (the more general) to bottom (the more specific), split the problem, which is unstructured at this step, into sub-modules that will become sub-hierarchies. Navigating through the hierarchy from top to bottom, the AHP structure comprises goals (systematic branches and nodes), criteria (evaluation parameters) and alternative ratings (measuring the adequacy of the solution for the criterion).
Each branch is then further divided into an appropriate level of detail. At the end, the iteration process transforms the unstructured problem into a manageable problem organized both vertically and horizontally under the form of a hierarchy of weighted criteria.
By increasing the number of criteria, the importance of each criterion is thus diluted, which is compensated by assigning a weight to each criterion.
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Request for Proposal Cover Letter ![]()
Hendrix-Barnhill Company, Inc.![]()
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STONEY RUN SANITARY SEWER SYSTEM-Sanitary sewer extension including gravity & pressure mains, manholes, grinder pump station, house connections, traffic control, erosion & sediment control, site restoration... Get more info @ ftp://ftp.thebeltgroup.com.
Chemonics International, acting on behalf of the Zambia Threshold Project, is soliciting offers for the supply and installation of file compactors in Zambia. Contact rkeating@zambiathreshold.org for copy of the RFP and information..
Last Modified: Monday, August 17, 2009 12:27:17 PM