Section [1]

Analytic Hierarchy Process (AHP)

 Ahp is a multicriteria decision-making system (MCDM that helps in making decisions by

comparing various alternatives based on multiple criteria.
 It is widely used in situations where decisions need to be made based on both
quantitative and qualitative factors.

Methodology of AHP

1- Define the Goal

Clearly state the primary objective of the decision-making process. This forms the top of the hierarchy.

2- Structure the Decision Hierarchy

Organize the decision problem into three levels:

Level 1: Goal (e.g., Select the best supplier).

Level 2: Criteria and Sub-Criteria (e.g., Cost, Quality, Delivery Time).

Level 3: Alternatives (e.g., Supplier A, Supplier B, Supplier C).

3- Perform Pairwise Comparisons

Value Meaning
1 Equal importance
3 Moderate importance of one over the other
5 Strong importance of one over the other
7 Very strong importance of one over the other
9 Extreme importance of one over the other
2, 4, 6, 8 Intermediate values between the above scale values
 Sheet [1]

► Example1 : A group of educators wants to determine which school(Alternatives: School A, school

B, and school C) provides the highest level of satisfaction for its students. To make an informed
decision, they decide to use the Analytic Hierarchy Process (AHP) based on several key criteria (
learning, friends, school life, vocational training, college prep. and music classes).

The comparison matrix for pair wise Criteria is given below

Learning Friends School life Vocational College Music classes
trng prep
Learning 1 4 3 1 3 4
Friends 1/4 1 7 3 1/5 1
School life 1/3 1/7 1 1/5 1/5 1/6
Vocational trng 1 1/3 5 1 1 1/3
College prep 1/3 5 5 1 1 3
Music classes 1/4 1 6 3 1/3 1

Also, the Relative criteria for alternatives is

Learning A B C Vocational A B C
A 1 1/3 1/2 trng
B 3 1 3 A 1 9 7
C 2 1/3 1 B 1/9 1 1/5
C 1/7 5 1

Friends A B C College A B C
A 1 1 1 prep
B 1 1 1 A 1 1/2 1
C 1 1 1 B 2 1 2
C 1 1/2 1

School A B C Music A B C
life classes
A 1 5 1 A 1 6 4
B 1/5 1 1/5 B 1/6 1 1/3
C 1 5 1 C 1/4 3 1
Solution :-

 Goal: To select the most satisfied school.

 the Decision Hierarchy
 Compare the Alternatives for Each Criterion (Alternative Vs Alternative)
 Pairwise Comparison for Learning
1- calc the geo mean

Geometric Mean For each row, multiply all the elements in that row and then take the n-th root
of the product, where n is the number of elements in the row (i.e., the number of criteria).

Learning A B C geo mean

A 1 1/3 1/2 3 1 1
√1 ∗ ∗
3 2
= 0.55
B 3 1 3 2.08
C 2 1/3 1 0.87

2- calc the priority

priority vector Once you calculate the geometric mean for each row, normalize the values by
dividing each GM by the sum of all the GM values. This will give you the priority vector
(weights).
𝐺𝑚𝑖
𝑊𝑖 =
∑ 𝐺𝑀𝑖

Learning A B C geo mean priority

A 1 1/3 1/2 0.55
3 1 1 = 0.16
√1 ∗ ∗ 3.5
3 2
= 0.55
B 3 1 3 2.08 0.59
C 2 1/3 1 0.87 0.25
Sum 6 5/3 9/2 7/2 1

3- calc λ max
5 9
λ max = 6 ∗ 0.16 + ∗ 0.59 + ∗ 0.25 = 3.07
3 2

4- calc consistency index [cI]

λ max −𝑛 3.07−3
cI = 𝑛−1
= 3−1
= 0.03

5- calc consistency Ratio [CR]

CI
CR = 𝑅𝐼 - Random Index (RI) depends on n (the number of criteria).
0.03
CR = 0.58
= 0.05 < 0.1 is considered acceptable
Pairwise Comparisons
Friends A B C geo mean priority
A 1 1 1 1 1/3
B 1 1 1 1 1/3
C 1 1 1 1 1/3
Sum 3 3 3 3 1
𝟏 𝟏 𝟏
𝛌 𝐦𝐚𝐱 = ∗ 𝟑 + ∗ 𝟑 + ∗ 𝟑 = 𝟑
𝟑 𝟑 𝟑
𝛌 𝐦𝐚𝐱 −𝒏 𝟑−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎
𝟎
CR = = 0 < 0.1 is Perfectly consistent
𝟎.𝟓𝟖

School life A B C geo mean priority

A 1 5 1 1.71 0.45
B 1/5 1 1/5 0.34 0.09
C 1 5 1 1.71 0.45
Sum 11/5 11 11/5 3.76 1
𝟏𝟏 𝟏𝟏
𝛌 𝐦𝐚𝐱 = ∗ 𝟎. 𝟒𝟓 + 𝟏𝟏 ∗ 𝟎. 𝟎𝟗 + ∗ 0.45 = 2.97 = 3
𝟓 𝟓
𝛌 𝐦𝐚𝐱 −𝒏 𝟑−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎
𝟎
CR = = 0 < 0.1 is Perfectly consistent
𝟎.𝟓𝟖

Vocational A B C geo mean priority

trng
A 1 9 7 3.98 0.77
B 1/9 1 1/5 0.28 0.054
C 1/7 5 1 0.89 0.17
Sum 1.25 15 8.2 5.15 1
𝛌 𝐦𝐚𝐱 = 𝟏. 𝟐𝟓 ∗ 𝟎. 𝟕𝟕 + 𝟏𝟓 ∗ 𝟎. 𝟎𝟓𝟒 + 𝟖. 𝟐 ∗ 𝟎. 𝟏𝟕 = 𝟑. 𝟏𝟔
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟏𝟔−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟖
𝟎.𝟎𝟖
CR = = 0.13 < 0.1 is considered acceptable
𝟎.𝟓𝟖

College A B C geo mean priority

prep
A 1 1/2 1 0.79 1/4
B 2 1 2 1.58 1/2
C 1 1/2 1 0.79 1/4
Sum 4 2 4 3.16 1
𝟏 1 𝟏
𝛌 𝐦𝐚𝐱 = 𝟒 ∗ + 2 ∗ + 𝟒 ∗ = 3
𝟒 2 𝟒
𝛌 𝐦𝐚𝐱 −𝒏 𝟑−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎
𝟎
CR = 𝟎.𝟓𝟖= 0 < 0.1 is Perfectly consistent
 Music A B C geo mean priority
classes
A 1 6 4 2.88 0.69
B 1/6 1 1/3 0.38 0.091
C 1/4 3 1 0.91 0.218
Sum 1.42 10 5.33 4.16 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟎𝟓𝟐
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟎𝟓𝟐−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟐𝟔
𝟎.𝟎𝟐𝟔
CR = = 0.04 < 0.1 is considered acceptable
𝟎.𝟓𝟖

Pairwise Comparison Matrix for Criteria

Learning Friends School Vocational College Music Geo mean priority
life trng prep classes
√1 ∗ 4 ∗ 3 ∗ 1 ∗ 3 ∗ 4 2.29 = 0.32
6
Learning 1 4 3 1 3 4
= 2.29 7.23
Friends 1/4 1 7 3 1/5 1 1.01 0.14

School life 1/3 1/7 1 1/5 1/5 1/6 0.26 0.036

Vocational 1 1/3 5 1 1 1/3 0.90 0.124

trng
College 1/3 5 5 1 1 3 1.70 0.24
prep
Music 1/4 1 6 3 1/3 1 1.07 0.147
classes
sum 3.17 11.47 27 9.2 5.73 9.5 7.23 1
Compute the Final Score

Now, we multiply each alternative’s priority by the criterion priority:

Learning Friends School Vocational College Music Final score

life trng prep classes
0.32 0.14 0.036 0.124 0.24 0.147
1
A 0.16 1/3 0.45 0.77 1/4 0.69 0.16 ∗ 0.32 + ∗ 0.14 + 0.45 ∗
3
1
0.036 + 0.77 ∗ 0.124 + ∗
4
0.24 + 0.69 ∗ 0.147 =0.37
B 0.59 1/3 0.09 0.054 1/2 0.091 0.38

C 0.25 1/3 0.45 0.17 1/4 0.218 0.25

School B is the best school with an overall priority of 0.38, followed by school
Example 2:-

Peter is offered 3 jobs from Acme Manufacturing (A), Bankers Bank (B), and
Creative Consulting (C). He bases his evaluation on the criteria such as location,
salary, job content, and long-term prospects. the following tables represents the
pairwise comparision matrices for choosing a job. Complete the missing data of
each of the following tables then calculate the global priorities of the job A.
 Compare the Alternatives for Each Criterion (Alternative Vs Alternative)
Location A B C geo mean priority
A 1 1/2 1/3 0.5503 0.1634
B 2 1 1/2 1 0.2970
C 3 2 1 1.817 0.5396
Sum 3 3.5 11/6 3.397 1
𝟏𝟏
𝛌 𝐦𝐚𝐱 = 𝟑 ∗ 𝟎. 𝟏𝟔𝟑𝟒 + 𝟑. 𝟓 ∗ 𝟎. 𝟐𝟗𝟕𝟎 + ∗ 𝟎. 𝟓𝟑𝟗𝟔 = 𝟑. 𝟎𝟎𝟗𝟏
𝟔
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟎𝟎𝟗𝟏−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟎𝟒𝟓
𝟎.𝟎𝟎𝟒𝟓
CR = = 0 0.0079< 0.1 is considered consistent
𝟎.𝟓𝟖

Salary A B C geo mean priority

A 1 1/4 1/2 1/2 0.1365
B 4 1 3 2.289 0.625
C 2 1/3 1 0.874 0.2388
Sum 7 1/3 9/2 3.66 1
𝛌 𝐦𝐚𝐱 = 3.019
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟎𝟏𝟗−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟎𝟗𝟓
𝟎.𝟎𝟎𝟗𝟓
CR = 𝟎.𝟓𝟖
= 0.016 < 0.1 is considered consistent

Job A B C geo mean priority

Content
A 1 1/4 1/5 0.3684 0.0974
B 4 1 1/2 1.2599 0.3331
C 5 2 1 2.1544 0.5696
Sum 10 13/4 17/10 3.782 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟎𝟐
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟎𝟐−𝟑
cI = = = 𝟎. 𝟎𝟏𝟐𝟒
𝒏−𝟏 𝟑−𝟏
𝟎.𝟎𝟏𝟐𝟒
CR = 𝟎.𝟓𝟖
= 0.0214 < 0.1 is considered acceptable

Long- A B C geo mean priority

Term
A 1 7 9 3.979 0.7720
B 1/7 1 5 0.8939 0.1734
C 1/9 1/5 1 0.2811 0.0545
Sum 79/63 41/5 15 5.154 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟐𝟎𝟕𝟒
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟐𝟎𝟕𝟒−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟏𝟎𝟑
𝟎.𝟏𝟎𝟑
CR = 𝟎.𝟓𝟖
= 0.178 < 0.1 is considered acceptable
  Compute the Final Score

Now, we multiply each alternative’s priority by the criterion priority

Location Salary Job Long-Term Final score

Content
0.08482 0.499222 0.289122 0.126836
A 0.1634 0.1365 0.0974 0.7720 0.2080
B 0.2970 0.625 0.3331 0.1734 0.4555
C 0.5396 0.2388 0.5696 0.0545 0.3365

Job B (Bankers Bank) is the best job with an overall priority of 0.4555
 Compare the Alternatives for Each Criterion (Alternative Vs Alternative)
price A B C geo mean priority
A 1 3 2 1.8171 0.5076
B 1/3 1 1/5 0.4054 0.1133
C 1/2 5 1 1.357 0.3791
Sum 11/6 9 16/5 3.5795 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟏𝟔𝟑𝟒
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟏𝟔𝟑𝟒−𝟑
cI = = = 𝟎. 𝟎𝟖𝟏𝟕
𝒏−𝟏 𝟑−𝟏
𝟎.𝟎𝟖𝟏𝟕
CR = 𝟎.𝟓𝟖
= 0.14 < 0.1 is considered consistent

Distance A B C geo mean priority

A 1 6 1/3 1.2599 0.2785
B 1/6 1 1/9 0.2645 0.0584
C 3 9 1 3 0.6631
Sum 25/6 16 13/9 4.5244 1
𝛌 𝐦𝐚𝐱 = 3.0526
𝛌 𝐦𝐚𝐱 −𝒏 3.0526−𝟑
cI = = = 𝟎. 𝟎𝟐𝟔𝟑
𝒏−𝟏 𝟑−𝟏
𝟎.𝟎𝟐𝟔𝟑
CR = 𝟎.𝟓𝟖
= 0.0453 < 0.1 is considered consistent

Labor A B C geo mean priority

A 1 1/3 1 0.6934 0.1744
B 3 1 7 2.7589 0.6940
C 1 1/7 1 0.5228 0.1315
Sum 5 31/21 9 3.9751 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟎𝟕𝟗𝟗
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟎𝟕𝟗𝟗−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟑𝟗𝟗𝟓
𝟎.𝟎𝟑𝟗𝟗𝟓
CR = 𝟎.𝟓𝟖
= 0.0689 < 0.1 is considered acceptable

Wages A B C geo mean priority

A 1 1/3 1/2 0.5503 0.1515
B 3 1 4 2.2894 0.6301
C 2 1/4 1 0.7937 0.2184
Sum 6 19/12 11/2 3.6334 1
𝛌 𝐦𝐚𝐱 = 𝟑. 𝟏𝟎𝟕
𝛌 𝐦𝐚𝐱 −𝒏 𝟑.𝟏𝟎𝟕−𝟑
cI = 𝒏−𝟏 = 𝟑−𝟏 = 𝟎. 𝟎𝟓𝟑𝟗
𝟎.𝟎𝟓𝟑𝟗
CR = = 0.0929 < 0.1 is considered acceptable
𝟎.𝟓𝟖
  Compute the Final Score

Now, we multiply each alternative’s priority by the criterion priority

price Distance Labor Wages Final score

0.1993 0.6535 0.0860 0.0612

A 0.5076 0.2785 0.1744 0.1515 0.3074
B 0.1133 0.0584 0.6940 0.6301 0.1589
C 0.3791 0.6631 0.1315 0.2184 0.5335
Jilley Bean Co. should select Location C as it has the highest overall priority