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AHP Decision-Making Exercises

The board of directors needs to choose a new leader to implement a consultant's plan. They are considering Tom, Dick, and Harry based on their experience, education, charisma, and age. The AHP method is used to evaluate the candidates. Dick is chosen as the optimal decision. An individual is choosing between car models M1, M2, and M3 based on purchase price, maintenance cost, and city and rural driving costs. The AHP method is again used, and M3 is selected as the optimum choice.

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Vashti Sanchez
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137 views10 pages

AHP Decision-Making Exercises

The board of directors needs to choose a new leader to implement a consultant's plan. They are considering Tom, Dick, and Harry based on their experience, education, charisma, and age. The AHP method is used to evaluate the candidates. Dick is chosen as the optimal decision. An individual is choosing between car models M1, M2, and M3 based on purchase price, maintenance cost, and city and rural driving costs. The AHP method is again used, and M3 is selected as the optimum choice.

Uploaded by

Vashti Sanchez
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

SANCHEZ, VASHTI JAN P.

4IE-ORA
AHP PROBLEMS

PROBLEM 1:
REFERENCE: Wikipedia contributors. (2021, March 19). Analytic hierarchy process – leader example.
Wikipedia. Retrieved October 20, 2022, from
https://en.wikipedia.org/wiki/Analytic_hierarchy_process_%E2%80%93_leader_example

The board of directors needs to choose someone to lead the company through the change and upheaval
that implementing the consultant's plan will involve. The board of directors has chosen the following
attributes to be used in choosing the right leader namely: experience, education, charisma, and age. After
extensive research, they have selected three candidates for the position: Tom, Dick, and Harry. Help the
company to choose the right leader by solving the problem through AHP.

SOLUTION:

DECISION HIERARCHY
STEP 2: DERIVE THE PRIORITIES FOR THE CRITERIA/ATTRIBUTES
STEP 3: CHECKING THE CONSISTENCY OF JUDGEMENTS
STEP 4: DERIVE LOCAL PRIORITIES FOR THE ALTERNATIVES

STEP 5: DERIVE ALL PROPERTIES


Opt. Decision: Choose Dick as the new leader

STEP 6: SENSITIVITY ANALYSIS


PROBLEM 2:
REFERENCE: Taha, H. A. (2017). Operations Research: An Introduction. Pearson.
An individual is in the process of buying a car and has narrowed the choices to three models: M1, M2, and
M3. The deciding factors include purchase price (PP), maintenance cost (MC), cost of city driving (CD), and
cost of rural driving (RD). The following table provides the relevant data for 3 years of operation:

Use the cost data to develop the comparison matrices. Assess the consistency of the matrices, and
determine the choice of model.

SOLUTION:

DECISION HIERARCHY:
STEP 2: DERIVE THE PRIORITIES FOR THE CRITERIA/ATTRIBUTES
STEP 3: CHECKING THE CONSISTENCY OF JUDGEMENTS

STEP 4: DERIVE LOCAL PRIORITIES FOR THE ALTERNATIVES


STEP 5: DERIVE ALL PROPERTIES

Optimum Decision: M3 shall be chosen.

STEP 6: SENSITIVITY ANALYSIS

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