Analytic Hierarchy Process Essay

ntroduction
Usually several alternative possibilities will be encountered in daily like. The selection (or called decision making) has become a kind of psychology. By the decision making process we will get a final choice. There are a lot different decision-making methods published and widely used, such as weighted-point method, matrix approach, vendor performance matrix approach, vendor profile analysis (VPA), analytic hierarchy process (AHP), and multiple objective programming (MOP) Here followed is a short introduction of two different decision-making methods: the Analytic Hierarchy Process and the Multi-Attribute Utility theory.

When the decision-maker facing a complex problem with multiple conflicting and subjective criteria (for example location or investment selection, projects ranking and so forth), the decision-making method based on multi-criteria is so called the Analytic Hierarchy Process (AHP). AHP is originally proposed by Saaty in 1980[1]. It is based on four steps: problem modeling, weights valuation, weights aggregation and sensitivity analysis. To analysis the problem for the decision making process, it can be divided into three parts: goal, criteria and alternatives. First of all, AHP shows an advantage that it permits a hierarchical structure of the criteria, which provides users with a better focus on specific criteria and sub-criteria when allocating the weights. [1] Secondly, The AHP method uses a ratio scale, so it doesn’t require units in the comparison, and the decision make doesn’t need to make a numerical
Hokey Min report the study of AMUT used for the international supplier selection. Based on his study, MAUT can systematically measure both qualitative and quantitative factors and structure complex problems with a large number of criteria, attributes and