Journal of the Operational Research Society

, Volume 58, Issue 1, pp 29–38 | Cite as

Application of stochastic analytic hierarchy process within a domestic appliance manufacturer

Case-Oriented Paper

Abstract

The stochastic analytic hierarchy process (SAHP) provides a mechanism for achieving more effective selection of alternatives in the form of considering multi and conflicting criteria using quantitative and qualitative information under uncertainty. In contrast to the traditional analytic hierarchy process, the SAHP uses probabilistic distributions to incorporate uncertainty that people have in converging their judgements of preferences into a Likert scale. The vector of priorities is calculated using Monte Carlo simulation, the final rankings are analysed for rank reversal using statistical analysis, and managerial aspects are introduced systematically. The present paper demonstrates an application of the SAHP in a world-class domestic appliance manufacturer. The case study was carried out by strictly following a disciplined and organized methodology for applying the SAHP developed by the authors. The results of this study were encouraging to key personnel within the company, establishing a greater opportunity to explore the applications of the SAHP in other core business processes.

Keywords

SAHP AHP case study decision theory Monte Carlo simulation 

Notes

Acknowledgements

This research has been funded by the Mexican Council of Science and Technology, CONACYT. Special thanks to Nick Shubotham, Alwyn Hines and Phil Rowe. We thank the referees and two additional reviewers whose constructive suggestions helped in the improvement of the final version of the manuscript.

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Copyright information

© Palgrave Macmillan Ltd 2006

Authors and Affiliations

  1. 1.University of WarwickCoventryUK
  2. 2.Glasgow Caledonian UniversityGlasgowUK

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