Analytic Hierarchy Process (AHP)
The Analytic Hierarchy Process (AHP) is a multi-criteria decision-making approach and was introduced by Saaty (1977 and 1994). The AHP has attracted the interest of many researchers mainly due to the nice mathematical properties of the method and the fact that the required input data are rather easy to obtain. The AHP is a decision support tool which can be used to solve complex decision problems. It uses a multi-level hierarchical structure of objectives, criteria, subcriteria, and alternatives. The pertinent data are derived by using a set of pairwise comparisons. These comparisons are used to obtain the weights of importance of the decision criteria, and the relative performance measures of the alternatives in terms of each individual decision criterion. If the comparisons are not perfectly consistent, then it provides a mechanism for improving consistency. Some of the industrial engineering applications of the AHP include its use in integrated manufacturing (Putrus, 1990), in the evaluation of technology investment decisions (Boucher and McStravic, 1991), in flexible manufacturing systems (Wabalickis, 1988), layout design (Cambron and Evans, 1991), and also in other engineering problems (Wang and Raz,1991).
CIO Desk Reference
(Relevant content on this topic in the CIO Toolkit on CIO Index)