Analytic Hierarchy Process

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The Analytic Hierarchy Process (AHP) is a problem solving framework used in decision making. Developed in the 1970s, it is a systematic process for representing the elements of a problem, for relating those elements to overall goals, and for choosing among alternative solutions. It has the proven ability to resolve or assist in resolving a wide range of important decision problems in business, government, transportation, and other fields.

While AHP can be used by individuals working on straightforward problems, it is best suited to situations where teams of people are working on problems that are highly complex.

Uses of AHP

AHP has found wide use where decisions are important and complex, and where many different factors need to be considered. Examples include deciding how best to manage watersheds,[1] deciding how best to reduce the impact of climate change,[2] deciding where to locate offshore manufacturing plants,[3] and assessing the risk in different ways of operating cross-country petroleum pipelines.[4] It was recently applied to a project that uses video footage to assess the condition of highways in the Commonwealth of Virginia. AHP was used to determine the optimum scope of the project, and to justify its budget to lawmakers.

AHP is widely used in countries around the world. AHP's methods are highly compatible with the traditional Chinese decision making framework, and both research and applications of AHP have made remarkable progress there since it was introduced in 1982. Nearly 100 Chinese schools offer courses in AHP, and many doctoral students choose AHP as the subject of their research and dissertations. Over 900 papers have been published on the subject, and there is at least one Chinese journal devoted exclusively to AHP. The process has been used for many decisions in the fields of economics, energy, management, environment, traffic, agriculture, industry, and military applications.[5]

Aspects of AHP have been used in designing highly specific procedures for particular situations, such as the rating of buildings by historic significance.[6]

Teaching AHP

Though the use of AHP requires no specialized academic training, AHP is considered an important subject in several fields, including schools of engineering [7] and graduate schools of business. [8]



References

  1. de Steiguer, J.E. (October 27-30, 2003), The Analytic Hierarchy Process as a Means for Integrated Watershed Management, in Renard, Kenneth G., First Interagency Conference on Research on the Watersheds, Benson, Arizona: U.S. Department of Agriculture, Agricultural Research Service, at 736-740
  2. Berrittella, M., An Analytic Hierarchy Process for the Evaluation of Transport Policies to Reduce Climate Change Impacts, Fondazione Eni Enrico Mattei (Milano)
  3. Atthirawong, Walailak, An Application of the Analytical Hierarchy Process to International Location Decision-Making, in Gregory, Mike, Proceedings of The 7th Annual Cambridge International Manufacturing Symposium: Restructuring Global Manufacturing, Cambridge, England: University of Cambridge, at 1-18
  4. Dey, Prasanta Kumar (November, 2003). "Analytic Hierarchy Process Analyzes Risk of Operating Cross-Country Petroleum Pipelines in India". Natural Hazards Review 4 (4): 213-221. Retrieved on 2007-08-20.
  5. Sun, Hongkai (July, 2005), AHP in China, in Levy, Jason, Proceedings of the 8th International Symposium on the Analytic Hierarchy Process, Honolulu, Hawaii
  6. Lippert, Barbara C.; Stephen F. Weber (October 1995). "HIST 1.0; Decision Support Software for Rating Buildings by Historic Significance". National Institute of Standards and Technology, NISTIR 5683. Retrieved on 2007-08-20.
  7. Drake, P.R. (1998). "Using the Analytic Hierarchy Process in Engineering Education". International Journal of Engineering Education 14 (3): 191-196. Retrieved on 2007-08-20.
  8. Bodin, Lawrence; Saul I. Gass (January, 2004). "Exercises for Teaching the Analytic Hierarchy Process". INFORMS Transactions on Education 4 (2). Retrieved on 2007-08-20.

Rough References