How to do AHP analysis in Excel.pdfVIP

How to do AHP analysis in Excel Khwanruthai BUNRUAMKAEW (D3) Division of Spatial Information Science Graduate School of Life and Environmental Sciences University of Tsukuba ( March 1st, 2012) The Analytical Hierarchy Process - AHP ? AHP is one of the multiple criteria decision-making method that was originally developed by Prof. Thomas L. Saaty (1977). ? provides measures of judgement consistency ? derives priorities among criteria and alternatives ? simplifies preference ratings among decision criteria 2 using pair wise comparisons Using AHP 1. Decompose the decision-making problem into a hierarchy 2. Make pair wise comparisons and establish priorities among the elements in the hierarchy 3. Synthesise judgments (to obtain the set of overall or weights for achieving your goal) 4. Evaluate and check the consistency of judgements 3 The basic procedure is as follows: 1. Develop the ratings for each decision alternative for each criterion by ? developing a pair wise comparison matrix for each criterion ? normalizing the resulting matrix ? averaging the values in each row to get the corresponding rating ? calculating and checking the consistency ratio 4 2. Develop the weights for the criteria by ? developing a pairwise comparison matrix for each criterion ? normalizing the resulting matrix ? averaging the values in each row to get the corresponding rating ? calculating and checking the consistency ratio 3. Calculate the weighted average rating for each decision alternative. Choose the one with the highest score. 5 Structure the Hierarchy Decompose the decision-making problem into a hierarchy of criteria and alternatives. GoalGOAL Subfactor 11 Subfactor 12 Subfactor 13 Factor 1 Subfactor 21 Subfactor 22 Factor 2 Subfactor 31 Subfactor 32 Subfactor 33 Factor 3Criteria 1 Criteria 3Criteria 2 Criteria 11 Criteria 12 Criteria 13 Criteria 21 Criteria 33Criteria 32Criteria 31Criteria 22 Alt 1 Alt 2 Alt 3 6 Level 1 is the goal of the analysis. Level 2 is multi-criter