March 19, 2011

AHP —–analytical hierarchy process

AHP refers to Analytical Hierarchy Process , and it is a multicriteria decision making approach which arranges factors in hierarchy structure. Moreover , there are some factors need to be taken into account when we apply this method .

1. How to structure a decision problem ---in AHP  method ,the most important thin is to choose factors which actually related to decision making in hierarchic structure , for example , it starts from the overall goal  to criteria and sub-criteria .

2. Scale of measurement -- avoiding only number crunching: As we know that numbers take a significant parts in AHP method , however , we also need to be aware of that numbers should be judegeable and not fall into such situation which try to please one group of people and result in merely number crunching .

3. paired comparison as ratios--in AHP method , the basic contribution is how to derive relative scales using data from a standard scale and how to perform the following operation without number crunching . Therefore , paired comparison is initial at this part.

4.Theoretical consideration--it refers to when applying the AHP, we should be aware of the continuity and ensure that after transforming a variable , originally nearby value go over nearby value .

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