Abstract
In today’s world, there are many decisions to be made at every level of management. Learning to closely examine all benefits, opportunities, costs, and risk factors that will affect the decision to launch a project are important skills for decision-makers.
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Notes
- 1.
For completeness purpose, we should indicate that another proposed formula by Saaty (2012) to integrate BO/CR is the additive/reciprocal: B + O + 1/C + 1/R. However, the use of reciprocals has been strongly questioned by Millet and Schoner (2005), who have argued that taking cost and risk reciprocals actually distorts their originally common scale, thereby producing confounding results. In any case, this formula is rarely used in practice and for this reason is not further discussed in this book.
References
Millet, I., & Schoner, B. (2005). Incorporating negative values into the analytic hierarchy process. Computers and Operations Research, 32, 3163–3173.
Mu, E. (2016). Using AHP BOCR analysis for experiential business education and prioritization of international opportunities. International Journal of Business and Systems Research, 10(2/3/4), 364–393.
Saaty, T. L. (2012). Decision making for leaders: The analytic hierarchy process for decisions in a complex world (3rd revised ed.). Pittsburgh: RWS Publications.
Saaty, T. L., & Ozdemir, M. S. (2004). The encyclicon: A dictionary of decisions with dependence and feedback based on the analytic network process. Pittsburgh, PA: RWS Publications.
Wijnmalen, D. J. D. (2007). Analysis of benefits, opportunities, costs, and risks (BOCR) with the AHP–ANP: A critical validation. Mathematical and Computer Modeling, 46(7/8), 892–905.
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Mu, E., Pereyra-Rojas, M. (2018). Benefit/Cost Analysis Using AHP. In: Practical Decision Making using Super Decisions v3. SpringerBriefs in Operations Research. Springer, Cham. https://doi.org/10.1007/978-3-319-68369-0_7
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