______________________________________________________________
8th International
Symposium of the AHP
Abstracts of theProceedings
8th International Symposium of the
Analytic Hierarchy Process
Sponsored by
Creative Decisions Foundation
Chairman:
Jason Levy,
Honorary ISAHP Chair and ISAHP Founder: Thomas L. Saaty,
Editor: Jason Levy,
Editor: Rozann Saaty, Creative Decisions Foundation, rozann@creativedecisions.net
__________________________________________________
FOUNDER’S SPEECH
Thomas L.
Saaty
saaty@katz.pitt.edu
Individuals, corporations and governments constantly
face the extremely complex problem of ordering and prioritizing their numerous
decisions according to urgency and importance. Such ordering may be necessary
to sequence and optimize how they are implemented over time and allocate scarce
resources. Prioritization requires general and diverse economic, social,
political, environmental, cultural and other criteria that reach beyond the
familiar process of deciding on the best alternative in making a single
decision. The decision about decisions is more difficult when the best choice for
each particular decision is unknown and needs investing a large amount of time
and resources to determine. There are three cases to consider. 1) The best
alternative in each decision is known, 2) The best alternative in each decision
is unknown, and 3) A combination of these two cases. What are the values and
criteria that we need to use to prioritize decisions as the alternatives of a
more general decision process? Decision-making often involves, among other
things generating alternatives, setting priorities, choosing a best
alternative, allocating resources, determining requirements, predicting
outcomes, designing systems, optimizing performance, insuring the stability of
a system, planning, and resolving conflicts. Corporations do not have the
heterogeneous issues governments have, nor do they involve as much politics.
However they are much more resource oriented than governments are.
_______________________________________________________
Keynote
Speech
kinoshit@urban.meijo-u.ac.jp
For Professor Thomas L. Saaty, with respect and admiration
This
paper treats human decision making from the perspective of rationality, and
defines a Utility Function and Utility Theory as an instrumentally rational
decision making theory and AHP as a procedurally rational decision making
theory. Then it is shown that, in practical decision making and the behavior of
human being, it is more effective to use the AHP. The paper presents a partial
interpretation of a lasting debate on the effectiveness of Utility Function and
the AHP, a debate that does not seem to be ending anytime soon.
______________________________________________________________
Featured
Speeches
Distinguished
Chair Professor
Rm.
710, 7th floor, Assembly Bldg 1,
No.
1001,
yupl@cc.nctu.edu.tw
Analytic Hierarchy Process (AHP and ANP) has provided efficient ways
for people to rank the priority of criteria and alternatives in terms of numerical
ordering. More importantly, it has been greatly accepted by exponentially
increasing number of scholars and practitioners. This phenomenon has not
occurred in traditional utility theory. Utilizing the concepts of habitual
domains, we will try to explain why can this phenomenon occur and how to
further empower AHP and ANP in theoretical and application arena as to solve
practical and complex decision problems more effectively.
(with Thomas L.
Saaty)
The
lgvargas@pitt.edu
To
achieve a decision with which the group is satisfied, the group members must
accept the judgments, and ultimately the priorities. This requires that (a) the
judgments be homogeneous, and (b) the priorities of the individual group
members be compatible with the group priorities. There are three levels in
which the homogeneity of group preference needs to be considered: (1) for a
single paired comparison (monogeneity), (2) for an entire matrix of paired
comparisons (multigeneity), and (3) for a hierarchy or network (omnigeneity).
In this paper we study monogeneity and the impact it has on group priorities.
Fulcrum Engineering Ltd.
Luis Thayer Ojeda 0180 Of.1004 –
claudiogaruti@fulcrum.cl ; mariosandoval@fulcrum.cl
The
Objective of this presentation, is to show a comparison of models and results
between two different but complementary methods applied to the real Shiftwork
problem. The first is an application of AHP in a very large problem (more than
400 terminal or cover criteria, and more than 500 overall criteria), this was a
18 months work with 22 different experts involved to build a Shiftwork Asset,
that may be applied to almost any kind of shift in different type of work and
enterprises. The second one is an extension, built after completeness of the
first model. This time we used ANP instead of AHP, with a very good knowledge
of the problem as an advantage, so we were able to synthesize the model,
capturing almost all the existing interrelations. At the end, this paper has as
a main objective to be able to compare the benefits and costs of both ways of
doing the modeling process as well as to compare the final results obtained in
both systems AHP & ANP.
Isabel Spencer
Fulcrum Engineering Ltd.
AHP is
a powerful method for decision making as many examples over the years show, for
different type of problems, for different areas; used by consultants,
university professors, business men and women.
But as
all methodologies, might not be the best approach AHP in every single decision
making
problem. Explicit axioms ask to validate if the real life problem fits these
conditions before an application should be started.
Other
side is how AHP is used. As many methodologies, it contains alternative approaches
for given steps, and it is important during the problem solving planning step,
to set this up. It might yield to unexpected results, that, with inappropriate
knowledge of AHP, could be read simply as wrong AHP results.
This
can be seen in several papers published with AHP “wrong results”.
This
presentation is oriented to identify some of these key elements, make open
questions and show alternate results. Questions related basic axioms are key ;
is the first axiom a must? Is the reciprocal an unrealistic or hard condition?
What about feedback handling? How can it be detected? What about comparing
elements of too different size? Can axioms 2,3,4 be avoided?
Examples
are built from real life experience as well as extracted form published papers.
Diederik J.D. Wijnmalen
TNO,
This paper shows
that the usual multiplicative synthesis of alternative priorities for benefits,
opportunities, costs and risks, obtained from separate Analytic Hierarchy or
Network models, can be ambiguous. The ratio of benefit and opportunity
priorities to cost and risk priorities can be misleading when assessing the
profitability of a project. The same holds for their additive synthesis,
although advocated by AHP/ANP. A quotient of these priorities with weights as
coefficients, not powers, will however produce sound results, provided that the
four separate models are properly related to each other by weights that make
the priorities on the four factors commensurate and are obtained from magnitude
comparisons.
William C. Wedley
Faculty of Business
Administration,
wedley@sfu.ca
Matrices of paired comparisons
can be used to derive priority vectors that are later synthesized through
hierarchical (AHP) or network (ANP) composition. In effect, these processes
weight the priority vectors to produce a single vector that links the influences
of all factors relevant to the decision. Rather than determining numerous
priority vectors, weighting and synthesizing, an alternative approach is to
chain the original comparison matrices into a much-enlarged matrix that creates
a spanning tree across all influences. This broadened matrix can then be solved
with Harker’s method for incomplete matrices. In this study, we compare the
results of chained comparison matrices versus linked network vectors. A priori,
we would expect the two methods to yield the same results.
______________________________________________________________
AHP Theory I:
Weights & Pairwise Comparisons (Session 1)
Session
Chair:
Masanori
Ozawa
Faculty
of Science & Technology
3-14-1
Hiyoshi, Kohoku-ku
ozawa@ae.keio.ac.jp
In this paper, we discuss the sensitivity analysis for
performance of estimation methods under incomplete information in a comparison
matrix. Since there are some no-information elements in the comparison matrix,
estimated weights lack some reliability because of incomplete information.
Harker's method and the least square method are known to be good methods to estimate
weights under incomplete information in general. We show some properties of the
estimated weights when no-information elements in a comparison matrix has a
specific structure.
1846, Kubo, Matsusaka,
Mie, 515-8511 Japan
ysatoh@mie-chukyo-u.ac.jp
In this paper, we propose
an application of the Analytic Hierarchy Process to survey
research to overcome the
deficiency of traditional questionnaire methods. The procedure of the AHP
results in not only the identification of the most important alternative but
also the preference of all alternatives for each respondent. Therefore, by
applying the AHP to survey questionnaire, eliciting respondent's opinion more
precisely than by traditional methods may be expected. This study showed that
the weights derived from the AHP improved R2 in regression analysis, which had
Feeling Scores as independent variables and respondent’s political slant as
dependent variable.
Masaaki
Shinohara
Nihon University, Izumi-chou,
m7sinoha@cit.nihon-u.ac.jp
Keikichi
Osawa
Nihon University, Izumi-chou,
Ken Shinohara
Institute of Information Systems,
Hikarigaoka, Nerima,
m7sinoha@cit.nihon-u.ac.jp
In the general theory of flow and potential, flow is induced by potential
difference, and it is shown that pairwise comparison flow is also induced by
priority weight potential difference in the logarithmic least squares
estimation(LLSE) of node priority weight of a
pairwise comparison design graph. While in the electrical circuit network,
Kirchhoff’s Current Law(KCL) holds on a cutset basis, Kirchhoff’s Voltage
Law(KVL) holds on a tieset basis, and Ohm’s Law holds on a link basis, but in
the LLSE of pairwise comparison design graph, the conservation law of pairwise
comparison flow(KCL-like plus Ohm-like law) holds on a cutset basis. Using this
law (or set of equations) systematically, topological formulae for the
expression of priority weight potential are given for some design graphs.
Kazutomo Nishizawa
Department of Mathematical Information
Engineering,
k7nisiza@cit.nihon-u.ac.jp
AHP (Analytic
Hierarchy Process) and ANP (Analytic Network Process) are useful tool for
decision makers. However, the amount of pairwise comparison becomes large with
increasing the number of alternatives and criteria. Therefore, it takes much
time and the loads of the decision maker increase. In AHP and ANP, it is
important to pairwise compare carefully but to need speedily. This paper
proposes a method to deal speedily with pairwise comparisons, and apply our
method to AHP and 2- cluster ANP. In our method, we introduce three-level
evaluation, scale values range from 0 to 2. At first, decision maker sets the
standard in each criterion, and next, we evaluate alternatives and construct
the matrix, called evaluation matrix. In AHP, based on evaluation matrix, we
construct comparison matrix automatically and have each weight of alternative.
In 2-cluster ANP, equivalent to AHP, we construct super matrix automatically
and have each weight. The usefulness of our method was confirmed through some
examples.
Taki Kanda
Sayama, Saitama 350-1336
311-1
The essence of AHP is paired comparison. There are many methods of paired
comparison which have been proposed - Thurstone’s method which was studied as
Psychophysical analysis and developed by Mosteller, Scheffe’s method and
Bradley’s method which are often used in sensory tests, Guttman’s method which
starts with paired comparison and end up solving eigenvalue problems as well as
AHP.. The values for paired comparison vary with method. Here it is studied that
order statistics are used for the values to give to the answers of paired comparison
with the aim of giving scales for evaluation of importance of criteria or alternatives
with respect to each criterion so that the units of the scales can be considered
standard deviations of the standard normal distribution ( sigma). The scales
obtained by using order statistics are convenient to compare the importance among
many alternative because the units are clear.
Economics and Planning I:
Technology and Industry (Session 2)
Session Chair: Isabel Spencer
Hsiao-Chi Chen
1001,
This paper argues
what the value position of cluster is. We address transaction cost and
network effect to
define the value of industrial cluster. There are six critical resources from
cluster, including venture capital, talent pool, universities and research
institutes, support infrastructure, lead users, and entrepreneurial spirit. Therefore,
ANP method is used to investigate the major value position of cluster for
solving the relation to criteria. The companies of
support
infrastructure and talent pool are also the major value positions of the
industrial cluster effect.
Amy Mei-Chen Lo, Chun-Yen Chang, Gwo-Hshiung
Tzeng, Fang-Mei Tseng
1001,
Kainan University, No. 1 Kainan Rd., Lu-jhu, Taoyuan 338,
Department of International Business, Yuan Ze University,
cyc@mail.nctu.edu.tw, ghtzeng@cc.nctu.edu.tw,
The semiconductor
dedicated foundry industry was first operated in 1987. The pure-play foundry in
real production, in turn, fostered the booming fabless IC segment, as well as
the burgeoning design services industry. This study adopted the empirical cases
to analyze the important attributes for operating an efficient wafer foundry
fabrication (Fab). The proposed approach uses an Analytic Hierarchy Process
(AHP) to assign weights, enabling internal employees, varied groups and the
leaders to identify generic process elements that are relevant to the current
business flow.
Osmangazi University Industrial Engineering Department,
mujgano@ogu.edu.tr
Most of us have concerns when
we make a decision about not having all the important factors included. Even if an alternative has a high priority relative
to other alternatives that priority is questionable because there may be other
criteria that need to be identified and used that can change the ranks obtained
for the alternatives. We offer a way to include the objects of these concerns
into decision problems. We compare the importance of the unknown with other
factors. Pairwise comparisons make it possible to tackle this idea explicitly
and rather simply. One condition is that the unknown does not have such a high
priority that it indicates total ignorance. The idea is to determine the
sensitivity of the outcome with respect to the unknown to see if it is stable.
Yu-Jing Chiu
Department of Business Administration,
200,
yujing@cycu.edu.tw
Yuh-Wen Chen
Department of Industrial Engineering,
profchen@mail.dyu.edu.tw
As the knowledge economics grows rapidly, the value of intangible
assets is more emphasized in business nowadays. Intangible assets include
intellectual capital and intellectual property. Intellectual property is often
protected by patents, which are the claims for intellectual property. Since the
enterprise is willing to pay the patent for the sustainable growth, we propose
an objective scoring system, which is implemented by AHP, for patent valuation
of enterprise.
The aim of this article is to determine how to select raw material
supply options for paper making factory. The decision-making is examined within
the framework of benefits, opportunities, costs, and risks (BOCR). A hierarchy
is used to prioritize the BOCR themselves are prioritized using the Analytic
Hierarchy Process (AHP) ratings approach. A control hierarchy is then created
and prioritized using the Analytic Network Process (ANP) to evaluate the
“control criteria” of the system. There are a total of 19 control criteria in
the system and each controls a decision network evaluated using the ANP. The
final synthesis of the system shows external procurement is the best choice.
Dept. Industrial Engineering,
yangcy98@mails.tsinghua.edu.cn
Beijing Eastar Technology Co, Ltd.
Technology
road-mapping is a tool for technology planning which has been caused more and
more attention in both academic and industrial fields. In this paper, firstly,
we summarize the technical problems emerging within technology road-mapping.
Then, we demonstrate a methodology based on the Analytic Hierarchy Process
(AHP) to address the decision making problems in evaluating technology
alternatives in technology roadmap. Finally, we present a process which is
easily implemental approach to technology road-mapping.
______________________________________________________________
Selection and Choice I:
Environment and Development (Session 3)
Session Chair:
Integrated Consultants
shashi@icon.com.np
Markus Starkl
University of Natural Resources and Applied Life Sciences,
Department for Water, Atmosphere and Environment
markus.starkl@boku.ac.at
The
appropriateness of the application of AHP in rural water supply and sanitation
(RWSS) projects in developing countries, with the growing need for, and
application of, Multi Criteria Analysis (MCA) techniques for integrated
approach is discussed.
Two application
scenarios are presented in the paper, taken from consulting assignments in
The processes of
social learning and decision-making increasingly demand an integrated approach
to handle the information, which is generated, perhaps for planning and
management of new projects, for sustainability assessment or for benchmarking
of completed projects. Among various tools assessed, the AHP-based MCA tool is
a promising one. The paper, with brief literature review, concludes with
recommendations on further research, study and action required on the
application of AHP for RWSS system analysis in developing countries.
Kirti Peniwati
Jl. Menteng Raya 9,
kirti@indo.net.id
Werner Brenner
The Indonesian Association of Water Companies (PERPAMSI)
wbrenner@dnet.net.id
Fresh
water is in abundance in
Industrial
Engineering Department
aoddersh@lauca.usach.cl
This paper presents a decision model based upon community
preferences to hierachise activities that support the development of a rural
area in
drsamari@yahoo.com
As far as scientific and managerial activities are
concerned, it has been always a major challenge to select one best among a
number of choices. This important trend has, over the course of time, resulted
in the emergence of a variety of effective techniques for selecting one item,
from among many choices, as the best of all. Regarding the need for selecting
the most appropriate approach to forestry extension in zagros area, we found it
inevitable in our study to employ some specific techniques that would help us
make the befitting decision. This article is, accordingly, an attempt to show
that how the analytical hierarchy process (AHP), as a multi-criteria
decision-making techniques, can be effectively helpful in selecting on
appropriate model for forestry extension.
Ryszard
Uberman
Anna
Ostręga
Department of Opencast Mining
Mickiewicza Avenue 30, pav. A4, office 218
30-059 Kraków
uberman@agh.edu.pl
ostrega@agh.edu.pl
An application of
the AHP in the methodology of designing the revitalization of post-mining
regions has been presented in this article. A hierarchy of factors and the best
ways for the regeneration of exploited region were established by experts.
There were two groups of experts: the first one included experts related to the
revitalized region, while the second one was made up of independent
representatives from scientific institutions. Separate results from both groups
of experts and the collective results of the judgments are shown in the paper.
____________________________________________________________________
AHP Application (Session 4)
Session Chair: Kirti Peniwati
(or alternate
K.
A. Nigim
Department of Electrical and Computer Engineering,
knigim@ece.uwaterloo.ca
K. W. Hipel
Department of Systems Design Engineering,
kwhipel@engmail.uwaterloo.ca
G. B. Smith
International Business Development,
gbsmithaz@cox.net
Various
infrastructure segments of numerous countries have been repeatedly subjected to
natural or human-induced disasters. International aid institutions and
financial institutions are trying to assist in the reconstruction of devastated
countries. The development institutions normally face the problem of selecting
and implementing relevant priority infrastructure projects that are needed in
various sectors. Additionally, there are several local key players in the
decision making process. In many cases, the decisions of these main decision
makers often have contradictory objectives that lead to conflict and thereby
hamper the reconstruction process. In response to this kind of problem, an
effective approach has been developed within the field of Multiple Criteria
Decision Analysis (MCDA), referred to as the Analytical Hierarchy Process
(AHP), to assist decision makers in prioritizing projects to meet specified
goals and objectives. Using the AHP approach, the problem of selecting
infrastructure projects is dealt with systematically when applying this flexible
MCDA technique. This approach takes into account possible uncertainties, social
discrepancies and the potential lack of technical or historical data necessary
to select effectively and prioritize projects. Decision makers from
international financing aid
institutions, donor agencies, local governmental planning and community
representatives can utilize this proposed approach.
Mei-Fang Chen
Department of Business
Management,
40,
mfchen@ttu.edu.tw
Past studies
pointed to the fact that consumers associate a higher level of risk with
non-store shopping than in-store shopping. However, with the advent of the
information technology and e-commerce, shoppers are now increasingly likely to
shop across multiple channels. Multi-channel integration continues to be a
focus and will be a key factor driving growth onward. This paper describes the
Fu
Department of Statistics,
P.O. Box 90046-15 Chungho Taipei 235,
hkchiou@ebtnet.net
No.1
wancc@mail.knu.edu.tw
Distinguished Chair Professor.
Department of Business Administration,
ghtzeng@cc.nctu.edu.tw
While
entering WTO,
Department of Business Administration,
No. 1 Kainan Rd., Lu-jhu,
Wen-Hwa Ko
Department of Business Tourism and Hospitality Management,
No. 1 Kainan Rd., Lu-jhu,
kowh@mail.knu.edu.tw
Recently,
a new method of optimizing the restaurant planning for the decision of
restaurant types, the locations and food service system. The multi-criteria
decision analysis is one of the evident areas of important points in integrated
planning of the restaurant service system. This research is concerned with the
development of a 3-step restaurant planning based on service level,
multi-criteria decision analysis, and stochastic set-covering method. Following
three researches are included;; 1) optimal decision of restaurant types using
analytic hierarchy process and fu
Department of International Trade,
Cheng-Few Lee
Department of Finance,
Gwo-Hshiung Tzeng
This paper
describes a fu
____________________________________________________________________
Economics and Planning II:
Financial Risk Management
Session 5
The K. Adamiecki
ul. 1 Maja 15, 40-287
Mei-Chen Lo
1001,
Rapid growth in
financial markets, increasing volatility and globalization are the main reasons
of growing importance of financial risk management (FRM) which nowadays becomes
a serious matter not only for financial institution. Several risks, possible
targets and measures of each dimension of risk, several types of tools and
techniques come together to form the FRM. This is the reason why this is a
complicated, multi-step and multidimensional process. This study aims at the
four aspects of FRM: measuring, monitoring, controlling and policy to determine
the participant cognition of relative importance (weight). The AHP approach is
proposed to determine the relative importance of different aspects of FRM and
to enhance the performance of the FRM.
Tihomir Hunjak, Marijan Cingula
Faculty of Organization and Informatics Varazdin
Pavlinska 2, 42000 Varazdin
tihomir.hunjak@foi.hr, marijan.cingula@foi.hr
Summary: The most
significant differences at emerging markets, according to the other types of
capital markets, include volatility, lack of regulation, and lack of liquidity.
Thus, portfolio building is usually not result of standard techniques and
procedures such as technical or fundamental analysis. Besides, the use of
insider’s information for trading at emerging markets is not always controlled
and sanctioned as it is expected in other democratic countries, which have
decades or even centuries of trading tradition. Corporate governance in
transition countries formally follows the OECD Principles, but the
implementation of ethical rules is still about starting point in many companies
listed on local stock exchanges. International investors, who are crucial for
economic development in countries with emerging markets, need more reliable
environment for their decisions, so they should welcome establishing the
multi-criteria model for building their portfolios.
Kazuyoshi Yonemoto
Management Planning Division, Kawamura Electoric.Inc.
3-86 Akatsuki-cho,Seto, Aichi 489-0071-Japan
ka-yonemoto@kawamura.co.jp
Toshimasa Ozaki
Faculty of Commerce,
1350 Kamishinano-chyo,Seto Aichi 480-1298-Japan
ozaki@ngu.ac.jp
It is difficult to
give a rational basis the "Aichi Exposition 2005". As one of the
methods which aim at people's agreement formation to the strategic event, a
multiple-purpose evaluation method seems to be possible to evaluate from the
viewpoint of corporate strategy. This paper describes the rationality of the
venues of the "Aichi Exposition 2005" by using the AHP from the theory
of corporate strategy. The criteria were extracted from the viewpoint of the
corporate strategy, alternative was each heartland region of eight an economic
block as for the Japanese whole country, and the priority was evaluated by the
absolute measurements method. Moreover the AHP was attempted to extend to the
ANP,
then the results
showed that eigenvalue method is superior to Super Matrix method in the
diagonal matrix to all one. At the end of the paper it was pointed out that
Aichi led to the best for the venue and the economic policy needed to change.
Sirindhorn International Institute of Technology
mongkutp@gmail.com
The planning of
highway alignment is a complex decision making that involves many
objectives and
stakeholders. Previous studies applied the Analytic Hierarchy Process (AHP) to
prioritize the alternatives of highway alignments. Standard AHP model could not
accommodate the variety of interactions, dependencies, and feedback. The
Analytic Network Process (ANP) is helpful to deal with interdependent
relationship within the multi-objectives and multi-stakeholders environment.
This paper demonstrates how to empirically prioritize a set of alternatives by
using ANP model. The paper first reviews the planning issues related to the
highway corridor planning. Then related characteristics were used to structure
the ANP model and scores were computed for prioritizing the potential highway
alignments. Engineering practitioners may adopt the weighted criteria for
alignment selection or apply the ANP method to prioritize their own set of
selection criteria.
Ozden Bayazit
Department of Business Administration,
Tel:+1-425-640 1574, Fax: +1-425-640 1488
bayazito@cwu.edu
Department of Management,
Tel:+1-330-941 1892, Fax: +1-330-941 1459
bkarpak@ysu.edu
Supplier selection is one
of the most crucial activities performed by the organizations because of its
strategic importance. A supplier selection problem is a multi-objective problem
involving both quantitative and qualitative criteria. Over the years a number
of quantitative approaches have been applied to supplier selection problems.
Although the Analytic Hierarchy Process (AHP) has previously been implemented in
supplier selection problems, in this paper for the first time a comprehensive
application of AHP for a real-world case is presented along with sensitivity
analysis to choose the best supplier. We proposed an AHP model to choose the
best supplier and place the order quantities among them for a construction
company.
______________________________________________________________
Selection and Choice II:
Management and Performance (Session 6)
Session Chair:
adamus@uj.edu.pl
In the management process each organization has human, financial, material, technological and information resources at its disposal. All of them are necessary for the rational functioning of the organization, but people are the most important capital of each company. They constitute its most precious potential on which the existence and development of each organization depends. Managers of companies carry out numerous activities aimed at achieving the best results thanks to using human intellectual potential. The basis for understanding another person involves getting acquainted with his/her system of values, the ability to awaken in the employees the readiness to undertake a particular action and provoking some additional intellectual and physical effort exceeding its currently displayed level, as well as the skills and abilities helping to achieve the aims of the organization. In the management process motivation is considered as the most important and most difficult function. No other functions in management, such as planning, decision taking, organization or supervision has been discussed so widely in literature as the motivation function (more than 5,000 publications).
For the purpose of this paper motivation has been defined as a human psychological mechanism, which consciously or unconsciously balances the set of different needs, aims, tasks and values directed at achieving, through various actions of man, objective or subjective satisfaction. The objective of this paper is a new approach to the motivation function aided by AHP, within the category of certain uniformity, in the form of one multi-criteria model consisting of various theories and approaches, motivation models and the author’s own considerations. This model differs considerably from the hither-to existing theories and models, since it has been constructed in the form of a hierarchical tree on top of which the main aim was set forth, namely the employees’ satisfaction with their work and the increase of effectiveness of their actions, while on the lower levels criteria, subcriteria and alternative motivating activities are placed. In this model, the importance of each motivating factor and motivating variant is determined through their mutual comparison according to T.L. Saaty’s fundamental scale and by ascribing priorities to them.
Asma
Bahurmoz
Department of Business Administration
International Islamic University
53100
rislam@iiu.edu.my
Shuib
bin Mohd Rasad
Inter System Maintenance Services S/B
shuib_ism@yahoo.com
Employee performance evaluation is designed to assess each
individual’s contribution to the organization. The performance of individuals
against organizational goals determines whether the organization meets its
goals. The basic objectives of performance evaluations are two-fold: firstly to
reward employees for meeting organizational objectives and secondly to identify
which objectives are not met and to develop action plans to ensure they are achieved
in future. The present paper uses analytic hierarchy process (AHP) to evaluate
employees performances based upon the criteria: quantity/quality of the work,
planning/organization, initiative/commitment, teamwork/cooperation,
communication and external factors. Each of these criteria has been divided
into 3 subcriteria. Two hundred and ninety-four employees of Inter System
Maintenance Services Sdn. Bhd. are evaluated on these subcriteria. Overall
ranking of the employees has been obtained using the absolute measurement
procedure of AHP.
Industrial Engineering Dept.
Osmangazi University,
Bademlik
Ekisehir, Turkey
n.ismail@ogu.edu.tr
Mujgan Sagi Ozdemir
Osmangazi University,
Bademlik
Ekisehir, Turkey
mujgano@ogu.edu.tr
Rafail N. Gasimov
Engineering and Architecture Faculty
gasimovr@ogu.edu.tr
A
faculty-course-time slot assignment problem is studied. The difficulty of such
problems lays on the fact that, the individuals taking part in the problem may
have different preferences related to the instructors, courses and time slots.
The 0-1 linear multiobjective model considering both the administration’s and
instructors’ preferences is developed for this problem. A real life application
is included. Analytic Hierarchy Process is used to weigh different and
conflicting objectives. These weights are used in different scalarization
approaches. The scalarized problems are solved using standard optimization
packages.
Faculty of Information Technology,
63100 Cyberjaya, Selangor
Using
Saaty’s original AHP, faculty member selection committee faces great challenges
when the number of candidates is large. Two methods, singular value decomposition
(SVD) in AHP and the duality approach to reduce the number of pairwise
comparisons are studied and compared in terms of time complexity and overall
rank result. Experiments showed that the SVD is preferred over the duality in
AHP.
______________________________________________________________
Socio-Economic Decision Making
Session 7
Session Chair: Asma Bahurmoz
Enrique Mu
Non-profit
organizations operate with more tight budgets and restrictions than their
private counterparts. There is always a risk that a wrong decision may have
catastrophic effects for the organization. Also, decisions made by non-profit
managers tend to be highly scrutinized by their constituents in terms of
consistency with the organizational mission, objectives, etc. This creates the
need for managers, to use a methodology that not only assists in their
decision-making process but that also allows them to explain the decision
criteria to the organizational stakeholders. This paper reports an on-going
application of the Analytic Network Process (ANP) in the context of one such
organization: The Latin American Studies Association (LASA). LASA organizes a
large international conference every eighteen months and need to estimate
conference attendance in advance (for logistic purposes) as well as selecting a
Latin American city where the combination of hotel infrastructure, conference
costs, and so on, makes it a sound financial choice.
In
this paper, ANP will be used to first, create a model to predict the relative
number of attendees to the forthcoming 2009 LASA international conference; and
second, to create a Benefit-Cost-Risk (BCR) model that will provide a framework
to select the most suitable Latin American city as the conference site. This
paper shows how the combination of these two ANP models, for prediction and
selection, can be used together for effective decision-making in the non-profit
sector. From a practical point of view, these two models will allow LASA top
managers, to select a conference site for their forthcoming March 2009
International LASA congress in a rational, consistent way, based on both the
expected number of attendees and organizational objectives. Also, using ANP
methodology, LASA managers will be able to explain to interested constituents,
the criteria used in the selection process.
Sedat Yüksel
Commerce and Tourism Education Faculty,
Gölbaşı,
It was aimed to
search to be able to forecast the crises which arise from demand
fluctuations, and
to able to generate a systematic and dynamic process in the hotel businesses.
In the quantitative period, forecasting was realized to 149 monthly series of a
five star hotel in
Environmental
FujitaS@mbox.pref.osaka.jp
Hiroyuki Tamura
Faculty of Engineering,
H.Tamura@kansai-u.ac.jp
In this paper, a
Life Cycle Management (LCM) for the residents for selecting the way of
disposing domestic kitchen garbage is proposed. The alternative ways to dispose
the kitchen garbage are evaluated based on the items related to the global
environmental problems, comfort of the life and cost. The model of descriptive
extension of Analytic Hierarchy Process is used for the multi-agent decision
making process in the case of reconstruction of a condominium. In this paper,
in order to adjust the preferences of multi-agent, a method based on the
M. Reza Abdi
Reconfigurable
Manufacturing Systems (RMSs) are designed to rapidly respond to changing market
requirements. RMSs operate on various products grouped into families according
to their operational requirements. Therefore, an RMS may require different
layout configurations while switching from one product to the other. This paper
investigates the criteria, which can influence on choosing layout
configurations. It then develops an AHP model to structure the criteria for the
selection of the most appropriate layout for each configuration stage. The
criteria are defined based on the layout reconfigurability, cost, quality and
reliability. The alternatives are identified based on the serial / parallel
configurations of the given machines.
Reza Banai
Compared to periodic literature surveys of applications of
AHP, there is a paucity of reviews of development applications of ANP. This
paper provides a survey of recent developments of ANP with reference to
applications in the realm of urban and regional planning.
______________________________________________________________
Economics and Planning III:
Session Chair: Tom Feglar
Oyku Alanbay
Kurtulusderesi Cad No:47
oykua@cs.bilgi.edu.tr
Usage of
enterprise applications is becoming widespread every day and Enterprise
Resource Planning (ERP) systems are among these applications. ERPs are
preferred because of their organization-wide information sharing capability,
component-based structure and capability to be integrated with other systems.
Choosing which ERP to use is a complex decision that has significant economic
consequences, thus it requires a multi-criterion approach. Analytic hierarchy
process (AHP) is a method widely used for this kind of complex decision-making
problems. In this paper, a multi-attribute ERP selection decision model is introduced,
based on the AHP methodology. The model is illustrated with an example and
managerial implications are discussed. Based on the AHP, Expert Choice (EC) is
a decision support software that reduces complex decisions to a series of pair
wise comparisons and then synthesizing the results. In this study, EC is used
to perform the ERP selection procedure, provided the objectives and criteria.
Department of Engineering and Technology Management
nathasitg@etm.pdx.edu, kocaoglu@etm.pdx.edu
The
development of a new concept called Technology Development Envelope (TDE) is presented
in this paper. The TDE is developed to transform the technology roadmapping
approach to the level in which it is dynamic, flexible, and operationalizable.
This new approach provides an effective way to help organizations to overcome
the challenge of keeping a roadmap alive. The paper emphasizes how the AHP is
applied as a part of the TDE framework.
Min-Suk Yoon
San 96-1
msyoon@yosu.ac.kr
Ho-Won Jung
5-1 Anam-dong Sungbuk-gu
hwjung@korea.ac.kr
This
study intends to extend the applicability of the Analytic Hierarchy Process
(AHP) to software process assessments. Recently an AHP approach has been
successfully applied to software process assessments especially with regard to
boundary problems, ambiguities between two adjacent ratings. Boundary problems
may cause a problem in the process of inter-rater agreement for a process
attribute rating among assessors. However, the approach assumes that the
assessors reach a consensus for priorities of the associated practices. When
assessors cannot reach a priority consensus, a more systematic method is
required to make a consensus among those assessors having different sets of
priorities. In order to solve this problem, this study proposes a consolidating
method among conflicting assessors using compatibility metric of the AHP, and
shows its application steps.
Department of Econometrics,
Praha, 130 67
jablon@vse.cz, URL: http://nb.vse.cz/~jablon/
The
paper deals with models and methods for evaluation of efficiency of production
units. The standard modeling approach for evaluation of efficiency is data
envelopment analysis (DEA) based on the definition of efficiency as the ratio
of outputs produced by the unit and inputs spent in the production process.
Standard data envelopment analysis models divide the units into inefficient and
efficient ones. The efficient units receive the efficiency score 100% by
standard DEA models and can be further classified by so called super-efficiency
DEA models. The paper discusses the possibility of using the AHP model with
interval pairwise comparisons for evaluation and classification of efficient
units and compares given1results with super-efficiency DEA scores. The proposed
approach is applied in assessing the efficiency of pension funds in the
Department of Econometrics,
Praha, 130 67,
pfiala@vse.cz
The
network economy is a term for today’s global relationship among economic
subjects characterized by massive connectivity. The central act of the new era
is to connect everything to everything in deep web networks at many levels of
mutually interdependent relations, where resources and activities are shared,
markets are enlarged and costs and risk are reduced. Network systems contain
both positive and negative feedbacks. A variety of feedback processes create
complex system behavior. For the whole network seems to be very appropriate
Analytic Network Process (ANP) approach. The ANP method makes possible to deal
systematically with all kinds of dependence and feedback in the system. Dynamic
models try to reflect changes in real or simulated time and take into account
that the network model components are constantly evolving. Dynamic models use
concepts of state variables, flows, and feedback processes. Dynamic Network
process (DNP) as an extension of ANP can deal with time dependent priorities in
network economy.
______________________________________________________________
AHP Case Studies (Session 9)
Session Chair:
Seiji Usui, Fusachika Miyasaka, Takeshi Kanao, Satoru Shibamoto
Yamatake Building Systems Co., Ltd.
4-3-4, Shibaura, Minato-ku,
{usui-seiji, miyasaka-fusachika, kanao-takeshi,
shibamoto-satoru}@ybs.yamatake.co.jp
Faculty of Urban Science,
kinoshit@urban.meijo-u.ac.jp
Generally, there
are hot and chilled water generators, heat pumps, boilers and cogeneration
machines, etc as energy facilities for building air conditioning systems. In
this paper, we use air conditioning loads, energy cost and carbon emission as
operational criteria of these facilities. And, this paper proposes AHP method
for the choice of the optimum on-off states of energy facilities in each time
step.
Jesuk Ko
Dept. of Industrial & Information
Gwangju
University, Korea
This paper deals with an
integrated decision model for determining the location of the distribution
facilities. As aids in making distribution location decisions, use of decision
factor analysis and the analytic hierarchy process is proposed. The location
decision model includes a structured criterion set having 20 criteria
represented by a two-level hierarchical structure. For this study, a
questionnaire was developed with regard to location criteria and given to 180
managers in the distribution arena asking their opinions about the locations of
the distribution facilities. The survey results were analyzed based on the
location selection criteria. This application of the location decision model to
real-world cases, including the recommendation of new distribution facility
locations, demonstrates the practical applicability of the research findings.
Sebnem Burnaz,
ITU Isletme Fakultesi,
Macka 34367,
ilker.topcu@itu.edu.tr
This research is
based on quantifying consumer preference in soft drink industry for a cola
brand by using an integrated multi-criteria decision aid approach. The analytic
network process model is used to conduct a comprehensive evaluation of the
problem on hand. In accordance with the sequence of decision making process,
after structuring the problem and constructing the decision model, a quantitative
analysis is conducted in order to assess the importance of the related factors
and predict the market shares of the key players in the industry. Predicted
values are compared with actual ones for validation of the whole process. The
assessed importance of the factors, in a valid model, would be a potential
competitive advantage for the key players in the industry.
Nilgun Turan Y.
Arama Participatory Management Consulting,
Kanlıca 34610,
Ilker Topcu
Macka 34367,
ilker.topcu@itu.edu.tr
Vocational
education system in
Petroleum Engineering Department
Faculty of Mineral Technology
asri_nugrahanti@yahoo.com
hanti@trisakti.ac.id
Gasoline pricing
in
The supply and
distribution of petrofuel (BBM) aims at gaining the maximal profit for the
prosperity of the people and the development of the nation, sufficing domestic
needs and providing domestic crude oil. The supply and distribution go through
along and complex process. Petrofuel deals with many people’s life, industrial
stimulus, foundational factor of national development, and budget. The number
of factors considered by decision makers reflects the complexity of petrofuel
pricing that can meet many different views. Gasoline pricing is one of
petrofuel pricing. Gasoline can be a “price leader” or “effect multiplier ” for
the prices of other products. Not only does the gasoline price depend on supply
and demand, but it also depends on many influencing factors, both internal such
as politics and social and external such as the international market price of
crude oil. The determination is really impacted by complicated price structure,
tangible and intangible. In determining gasoline pricing which is not easy to
be solved, it’s worth considering taking account of alternatives with dominant
weight. Each criterion of respective Benefit (B), Cost (C), Opportunity (O),
Risk (R), which relates to alternative is applied to find out the best
priority. The primary data are from decision makers.
Out of several
prioritized alternatives, there will be gained 3 outcomes: Standard Condition
(B/C), Pessimistic B/(CxR) and Realistic (BxO)/(CxR). The best alternative to
choose is the one having the greatest Realistic Price and this chosen
alternative is considered as a decision of many existing alternatives.
______________________________________________________________
Additional Abstracts
(not
presented during the conference)
Ami Arbel
Tel
ami@eng.tau.ac.il
lgvargas@pitt.edu
We formulated the
problem of finding a priority vector from an interval reciprocal matrix as an
Euclidean center problem. The interesting result is that this formulation
always has a solution and provides knowledge about the feasible region. The
sign of the objective function of the Euclidean center formulation predicts the
existence of a feasible solution that satisfies the constraints given by the
interval reciprocal matrix. We showed that, if the Euclidean center objective
function is positive, there are multiple plausible solutions, if it is
negative, there no feasible solutions, and if it is equal zero, the feasible
region consists of a single point.
Yen-Ni Chang, Chih-Young Huang, Julie Chih-Li Sun
Taiwan Institute of Economic Research,
Following in the
wake of medical biotechnology, agricultural biotechnology (AgBio) is
slated to become a
key area of development in the biotechnology industry. Because agricultural
biotechnology is closely connected with food, health, and resource technology
industries, many countries are investing heavily in terms of both funding and
talent to enhance their international competitiveness in this field. This
research study was designed using the fu
Farideh Delavari-Edalat, M. Reza Abdi
r.abdi@ bradford.ac.uk
Biophilia is the
idea that insists on the dependency of human identity on the relationship with
nature. The idea has been developed in recent years and consists of nine
tendencies. Aim of this research is to identify the significant popular
attitudes towards trees in an urban area based on biophilia tendencies. This
research employs the Analytical Hierarchical Process (AHP) to consider basic
human instincts and human preferences about their surrounding areas along with
environmental factors. Accordingly, the model facilitates the analysis of the
results with respect to biophilia tendencies as criteria. Consequently a link
between human feeling about urban trees and environmental factors can be found
in monitoring the performance analysis.
Mirosław Dytczak, Grzegorz Ginda
Municipal economy
problems are of complex nature and they require because of various factors.
Thus to include them effectively, multicriteria analysis should be applied.
Problems of heat production and delivery systems belong to group of such
multidisciplinary problems. They were usually resolved in the past using
classical numerical methodology that took into account only technical and economical
merits. But to obtain more realistic results, that would allow making more
effective decisions, special multicriteria tool is required. The Analytical
Hierarchy Process seems to be good alternative to fill the existing gap between
realms of decision-making and traditionally utilized methodology for resolving
problems of heat production and delivery systems. Thanks to simplicity and
effectiveness of AHP methodology it is possible to efficiently prioritize
quality of applicable alternatives of heat source for the system delivering
heat energy to houses in medium sized city located in
Tom Feglar
International Consultant in Information Systems Research and
Architecture
Jason K. Levy
Information and Computer Science Department,
Pearl Citv.HI.
jlevy@hawaii.edu
Tatiana Feglar, Tomas Feglar, jn.
Benefit –
Business Rules
Motivation Model (BRMM) was developed by BR Group to simplify Enterprise
Architects modeling business owner motivation associated primarily with a
vision and desired results.
Original BRMM uses
for assessment SWOT (Strength, Weakness,
To overcome these
limitations we developed new approach that allows replacement of the original
SWOT assessment with BOCR.
In our paper we
describe modified BRMM and the way how it can be realized using CAF (Component
Architecture Framework).
Tom Feglar
Jason K. Levy
jlevy@hawaii.edu
Information and
Communication Technology (ICT) becomes very important driven force that could
have significant impact to the enterprise. It cannot be ignored thanks to
competition. Massive ICT innovation could be too risky thanks unpredictable and
complex impact. We focus our attention to the classification of various ICT
based innovations that will allow us development of AHP/ANP/DNP class of models
suitable for ICT driven innovation management.
AHP/ANP/DNP
methods are very powerful. At the same time it is difficult – especially in
complex problems – design of appropriate hierarchical structure (AHP), the
control structure (ANP) and decision horizon (DNP). Application of these
methods to the ICT driven decisions could be significantly simplified if we
integrate decision models to the enterprise architecture framework.
In our paper we
describe a set of classification criteria (derived from enterprise architecture
perspective) and apply them to the classification of various papers dealing with
ICT based innovation.
Fulcrum Engineering
fulcrum@fulcrum.cl
The
aim of this work is to show the parallelisms and analogies that exist in
modeling and measuring of dependence and feedback processes, in physical and in
decision making processes, this is, to compare among the scales of measurement
of the physical world (geometry) and the scales of measurement of the human being
internal decision process, in other words, the brain’s internal generation of
relative measure scale.
Widodo Harahap
Indonesia Port Company,
PT Pelindo II, Tanjung
Priok, Jakarta-Indonesia
Idwan Santoso
Bandung Institute of
Technology
Jl. Ganesa No. 10
Tel./Fax.62-22-2503147
Kadarsah Suryadi
Bandung Institute of
Technology
Tel./Fax.62-22-2508141, 2507880
kadarsah@bdg.centrin.net.id
Pressure towards privatization about seaport
infrastructure management in
This research was done with questionnaire survey which are
distributed to respondents. The laters are stakeholders and decision makers
related to PT (Persero) Pelabuhan Indonesia II. The proposed research consists
of Analytic Hierarchy Process with four criteria’s, they are: financial,
service, market condition and local situation, and three alternative solutions,
they are: management contract, leasing and build operate transfer. The result
showed that the build operate transfer alternative is the most suitable model
of privatization to manage seaport’s terminal at
Mean while, according to a specific criterium, that is
readiness for privatizion, the most suitable alternative is leasing. So there
is a conflict between AHP result and non AHP result. The solution is a
compromized step, through
Yuan-Huei Huang, Chih-Young Hung, Kuei-Ing
Wang
Department of Pediatric Surgery, Chang
Gung Children’s Hospital,
No.7,
pyjchang@ms34.hinet.net
King-Jen
Chang
Department
of Surgery,
No.7.Chung
kingjen@ha.mc.ntu.edu.tw
Many countries
with health insurance systems conduct periodic payment standards reform. How to
reach consensus in setting payment standards among different specialties with
different agendas become critical issue. The purpose of this study is to
construct an analytic hierarchy process (AHP) model for forming experts’
consensus on the issue of “factors related to establishing payment standards in
the national health insurance program”. Under this goal, the first-tier
contains four evaluation aspects, and the second-tier evaluation criteria
include sixteen items in four groups. The AHP model was then used to condense
the opinions of the experts through an empirical study. The results of our
study strongly support that the AHP model constructed is effective in forming a
consensus among surgical specialists.
Chih-Young Hung,
Kuei-Ing Wang, Yuan-Huei Huang
Tel: 886-3-5712121 ext: 57514
Pei-Yeh Chang
Department of Pediatric Surgery, Chang Gung Children’s Hospital,
No.7,
Tel: 886-3-3281200 ext: 8001
pyjchang@ms34.hinet.net:
The
purposes of this study are employed analytic hierarchy process (AHP) to
investigate the important factors that
Heung Suk Hwang
Department of
Business Administration,
No. 1 Kainan Rd.,
Lu-jhu, Taoyuan, 338,
Tel:
+886-3-341-2500 ext. 6088, Fax : +886-3-341-2176
This
paper is concerned with the make-or-buy decision model for manufacturing and
procurement problems. We develop a web-based two-step approach such as: 1) the
first step, we used the multi-attribute analysis method using AHP (analytic
hierarchy process) and 2) second step we used fu
Heung Suk Hwang
Department of Business Administration,
No. 1 Kainan Rd., Lu-jhu,
Chun-Ling Chuang, Meng-Jong
Department of Information Management,
No. 1 Kainan Rd., Lu-jhu,
clchuang@mail.knu.edu.tw,
Supplier
selection is a multi-criteria decision making problem which includes evaluation
factors. In order to select the best suppliers it is crucial to considering the
both qualitative and quantitative factors simultaneously. In the supplier
selection process, manager also has to consider multi- criteria factors
related. Thus the integration of all the multi-criteria analysis and those
analysis results by multi-analysis teams has an important meaning in supply
chain design. In this paper we suggest a supplier selection analysis problem
considering both by AHP method and integration method of analysis results. The
proposed first analysis model using AHP which is a three-step decision analysis
model which converts the qualitative factors of suppliers transferred into the
quantitative measure reliability. Then, the integration model integrates the
results of multi-analysis and selects the best supplier. We develop a computer
program for both the AHP model and for integration model.
Taki
Kanda
311-1
Kashiwabarashinden
Sayama,
Saitama 350-1336,
kanda@bunri-c.ac.jp
Summary: This paper is concerned with human meal preference. For evaluating human meal Kansei (Kansei means human feelings in Japanese.) a method has been proposed to give the scales for human meal feelings as subjective characteristics of food in which the units of the scales are the standard deviations of the standard normal distribution. Here in addition to the method to evaluate human meal feelings a method is discussed to evaluate individuals’ meal intentions by paired comparisons, which is modified AHP(Analytic Hierarchy Process) in judging the consistency of subjects’ answers and giving the scales for the answers. Combining the methods to evaluate human meal feelings and individuals’ meal intentions a method is studied to evaluate individuals’ meal preference. In this paper the methods to evaluate individuals’ meal intentions and also individuals’ meal preference are described and numerical results of the experiment on Kansei evaluation are shown.
Jason
Levy
Department
of Information and Computer Science,
Mathematics
and Science Division,
96-045
jlevy@hawaii.edu
Keith
W. Hipel
Univeristy
of
200
University West,
Ali
Asgary
Department
of Applied Disaster and Emergency Studies
Time-dependent
priorities is a timely and important ANP development which has the potential to
greatly improve urban water resources planning and management. In order to
efficiently manage urban water systems, dynamic ANP is used to develop a
framework for quantify and measure system performance. To this end, urban water
system indicators are developed to capture either system serviceability or
environmental impacts. A fu
Stefan Lang
Christian Lerch
Technische Universität
Institute for Applied Geosciences
Geo-Resources and Geo-Hazards
D-64287
marinoni@geo.tu-darmstadt.de
Sand and gravel
are important raw materials which are needed for many civil engineering
projects. Due to economic reasons, sand and gravel pits are frequently located
in the periphery of metropolitan areas which are often subject to competing
land-use interests. As a contribution to land-use conflict solving, the
Analytic Hierarchy Process (AHP) is applied within a Geo-Information-System
(GIS) environment. Two AHP preference matrix scenario constellations are
evaluated and their results are used to create a land-use conflict map.
James A.W. Mulebeke, Li Zheng
Department of Industrial
Engineering
100084
Software
developers continuously enhance their offerings, often forcing an overhaul of
computer systems in order to properly work the improved versions. Entrepreneurs
find they have no choice but to update or replace their software. Knowing this
and actually making the decision is not easy. This specific qualitative
decision problem calls for a strategic solution. This paper focuses on
application of the Analytic Network Process to harness the software selection
problem for a small-medium sized manufacturing enterprise through objective
situation analysis, a structured approach to the solution, and forward
planning. Results indicate that trends are towards full blown business software
solutions especially for enterprises in areas of market growth due to rapid
changes in technology and competitive pressures. Application of a well defined
software evaluation and management process helps provide a roadmap with the
necessary information to aid management teams make sound decisions that are
timely and result in financial savings.
Masaaki
Shinohara
Nihon University, Izumi-chou,
m7sinoha@cit.nihon-u.ac.jp
Keikichi
Osawa
Nihon University, Izumi-chou,
Ken Shinohara
Institute of Information Systems,
Hikarigaoka, Nerima,
m7sinoha@cit.nihon-u.ac.jp
Hierarchical decomposition is applied to the payoff matrix of a 2-player zero-sum noncooperative game. Relationship between the strategy vector of the integrated payoff matrix and the strategy vector of each decomposed payoff matrix is studied. For the case of 2×2 zero-sum noncooperative game with purely mixed strategies, a simple formula which relates the strategy vector of the integrated payoff matrix and the strategy vector of each decomposed payoff matrix is established; the strategy vector of the integrated payoff matrix is obtained as a weighted combination of the strategy vector of each decomposed payoff matrix with the weight considering both the priority weight of each decomposed payoff matrix (or payoff matrix for each criterion) and the magnitude of each decomposed payoff matrix. The higher layer integrated game corresponds to the strategic decision making and the lower layer decomposed games correspond to the tactical decision making.
A Solution for Multi-Evaluator AHP
Masaaki Shinohara, Keikichi Osawa,
Izumi-chou,
M7sinoha@cit.nihon-u.ac.jp,
We often encounter the large
scale AHP where there are many kinds of alternatives (or objects to be
evaluated) and one evaluator cannot cover whole objects , so several separate
evaluators are needed, further each evaluator has the specific ability to
evaluate a specific group of objects. Let such type of AHP be called
multi-evaluator AHP. To solve the multi-evaluator AHP, we propose a
logarithmic linear pairwise comparison error model, taking evaluator's specific
characteristic in consideration, and then, the least square principle is
applied to obtain estimates of object weight and evaluator weight. The physical
meaning of weights of evaluators is clarified by the specific formula obtained
in our analysis. Further the so called group decision making in AHP is a
special case of multi-evaluator AHP, by which we can evaluate the reliabilities
of evaluators.
Ryszard
Uberman, Anna Ostręga
Faculty of Mining and Geo-engineering
Department of Opencast Mining
Mickiewicza Avenue 30, pav. A4, office 218
30-059 Kraków
uberman@agh.edu.pl, ostrega@agh.edu.pl
An application of the AHP in
the methodology of designing the re-vitalization of post-mining regions has
been presented in this article. A hierarchy of factors and the best ways for
the regeneration of exploited region were established by experts. There were
two groups of experts: the first one included experts related to the re-vitalized
region, while the second one was made up of independent representatives from
scientific institutions. Separate results from both groups of experts and the
collective results of the judgments are shown in the paper.
Kadarsah
Suryadi
Laboratory
of Information System and Decision Making
Industrial
Engineering Department
Bandung
Institute of Technology
Tel./fax: 62-22-2508141, 62-22-2507880
Email:kadarsah@bdg.centrin.net.id
As the increasing
of the organization’s complexities, fewer decisions are made by one individual
only. Facilities to support the process of decision-making are needed, and
Group Decision Support System (GDSS) as a new face of Decision Support System
can be used as an alternative. As an information media that might reduce the
problem of time and space, internet can be used as a base of the GDSS
development in order to create GDSS with ability in reducing the problem of
time and space in decision-making process. This developed web based GDSS is
specifically designed for project-oriented company, considering this kind of
company is undoubtedly facing various problems that need input from more than
one individual. Analytic Hierarchy Process is used as engine in this GDSS,
where the geometric mean method is utilized in grouping the judgments from all
decision makers.
Ferry Malvinas, Kadarsah Suryadi
Industrial Engineering Department - Bandung Institute of Technology
Jl. Ganesa No. 10,
ferry@mail.ti.itb.ac.id, kadarsah@bdg.centrin.net.id
Kuntoro Mangkoesubroto
Jl. Ganesa No. 10,
mkuntoro2002@yahoo.com
Titah Yudhistira
titah@mail.ti.itb.ac.id
Business
competition becomes progressively severe in the era of globalization. Changes
become faster and faster. Customer’s wants and needs keep changing
continuously. It is a challenge for companies to improve their existing
products and develop the new ones. Therefore, a company has to be able to
develop new products conforming customer preferences in a relatively short
time. Customer requirements
cannot be expressed in an explicit way since they are influenced by customer’s
perceptions and preferences of a certain product. Some methods have been
developed to measure customer’s preferences. Two methods that are commonly used
are conjoint analysis and Analytic Hierarchy Process (AHP). AHP is generally
used by decision makers to maximize subjective utility in decision analysis,
while conjoint analysis is generally used to maximize customer preferences in
marketing, especially for the product development. Each of those methods has
strengths and weaknesses, compared to each other, that are: (i) Conjoint analysis
has an ability to predict the score of product concepts which are not evaluated
directly, while AHP can predict only those which are evaluated directly; (ii)
AHP can be used to evaluate product concepts with sub-attribute, while conjoint
analysis cannot evaluate product concepts with sub-attribute; (iii) Scores of
alternatives produced by AHP are more dispersed compared to conjoint analysis.
In addition, AHP and conjoint analysis can only facilitate problems with finite
alternatives, while product development demands method which can facilitate
problems with infinite alternatives (i.e. attribute’s level with continuous
value).
This research
has developed derivative model of AHP in order to improve AHP so that it has
the ability of conjoint analysis (conjoint-analysis-like AHP) and to facilitate
the representation of alternatives with continuous attribute value. The
examination of the results indicates that the developed model is more sensitive
than AHP and has a better predictive ability than conjoint analysis. This
research has also indicated that further research can be conducted, for example
by considering uncertainty factor and by involving statistical analysis.