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1.7 The Analytic Hierarchy Process (AHP)
1.7 The Analytic Hierarchy Process (AHP)
LEVEL 2
HOUSE SIZE
NEIGHBORHOOD
HOUSE AGE
SIZE OF YARD
MODERN FACILITIES
FINANCING AVAILABLE
CONDITION OF HOUSE
LEVEL 3
HOUSE A
HOUSE B
HOUSE C
NE IGHBORHOOD
HOUS ES IZE
CONDITION
HOUS EAGE
6 3 3
FINANCING
YARD S IZE
FACILITIE S
BUS S TOP
Criteria Matrix
NUMBERS ARE
HOUS EAGE 1/7 1/5 1/6 1 1/3 1/4 1/7 1/8 YARD S IZE 1/6 1/3 1/3 3 FACILITIE S 1/6 1/3 1/4 4 FINANCING 3 5 1/6 7 CONDITION
4 7 5 8 1 1/2 1/5 1/6 2 5 6 1 1/5 1/6 5 6 1 1/2 2 1
Alternative Matrix
Location to Bus
1 7 1/ 5
Neighborhood
1 8 6
Age of House
1 1 1 1 1 1 1 1 1
1/ 6 1
1/ 7 1 1/ 8 5 8 1
1/ 8 1 1/ 4 1/ 6 4 1
1/ 8 1/ 4 1
Yard Space
1 5 4
Modern Facilities
1 8 6
General Condition
1 1/ 2 1/ 2 2 2 1 1 1 1
Financing
1 1/ 7 1/ 5 7 1 3
1/ 5 1 1/ 3 1/ 4 3 1
1/ 8 1 1/ 5 1/ 6 5 1
5 1/ 3 1
Step 4:
Compute composite priorities of the alternatives by linearly adding the priority weights.
Step 5:
Calculate a consistency ratio which will determine the consistency of the decision and reveal possible need of revisions to the judgments.
A sound analytical method of making decisions between alternatives. Eliminates some of the chance in making management decisions. Considers both tangible and intangible factors. Utilizes thought and intuition in a logical fashion.