The Analytic Hierarchy and Analytic Network Processes for the Measurement of Intangible Criteria and for Decision-Making
The Analytic Hierarchy Process (AHP) and its generalization to dependence and feedback, the Analytic Network Process (ANP), are theories of relative measurement of intangible criteria. With this approach to relative measurement, a scale of priorities is derived from pairwise comparison measurements only after the elements to be measured are known. The ability to do pairwise comparisons is our biological heritage and we need it to cope with a world where everything is relative and constantly changing. In traditional measurement one has a scale that one applies to measure any element that comes along that has the property the scale is for, and elements are measured one by one, not by comparing them with each other. In the AHP paired comparisons are made with judgments using numerical values taken from the AHP absolute fundamental scale of 1-9. A scale of relative values is derived from all these paired comparisons and it also belongs to an absolute scale that is invariant under the identity transformation like the system of real numbers. The AHP/ANP is useful for making multicriteria decisions involving benefits, opportunities, costs and risks. The ideas are developed in stages and illustrated with examples of real life decisions. The subject is transparent and despite some mathematics, it is easy to understand why it is done the way it is along the lines discussed here.
KeywordsAnalytic Hierarchy Process decision-making prioritization negative priorities rating benefits opportunities costs risks
Unable to display preview. Download preview PDF.
- R.W. Saaty. Decision Making in Complex Environments: The Analytic Network Process (ANP) for Dependence and Feedback; A Manual for the ANP Software SuperDecisions. Creative Decisions Foundation, 4922 Ellsworth Avenue, Pittsburgh, PA 15213, 2002.Google Scholar
- T.L. Saaty. Fundamentals of the Analytic Hierarchy Process. RWS Publications, 4922 Ellsworth Avenue, Pittsburgh, PA 15413, 2000.Google Scholar
- T.L. Saaty. The Analytic Network Process. RWS Publications, 4922 Ellsworth Avenue, Pittsburgh, PA 15213, 2001.Google Scholar
- T.L. Saaty and Y. Cho. The decision by the US Congress on China’s trade status: A multicriteria analysis. Socio-Economic Planning Sciences, 35(6):243–252, 2001.Google Scholar
- T.L. Saaty and L.G. Vargas. The possibility of group choice: Pairwise comparisons and merging functions. To appear, 2004.Google Scholar