Executive Manager Decision Making and Policy Planning, typically with many goals Sometimes even > 1 decision maker (Game Theory, Group Decisions) Linear.

Slides:

Advertisements

Similar presentations

Multicriteria Decision-Making Models

Advertisements

DECISION MODELING WITH Multi-Objective Decision Making

Lisa White Ph.D. Candidate School of Environment and Sustainability University of Saskatchewan May 30 th, 2012.

Multi‑Criteria Decision Making

Analytical Hierarchy Process (AHP) - by Saaty

Suitability and Optimality in the Asset Allocation Process Conflict and Resolution Paul Bolster, Northeastern University Sandy Warrick, S&S Software.

MIS 463 Analytic Hierarchy Process. 2 The Analytic Hierarchy Process (AHP) It is popular and widely used method for multi-criteria decision making. Allows.

Lecture 08 Analytic Hierarchy Process (Module 1)

Introduction to Management Science

Copyright © 2006 Pearson Education Canada Inc Course Arrangement !!! Nov. 22,Tuesday Last Class Nov. 23,WednesdayQuiz 5 Nov. 25, FridayTutorial 5.

Approximation and Visualization of Interactive Decision Maps Short course of lectures Alexander V. Lotov Dorodnicyn Computing Center of Russian Academy.

Operations Management For Competitive Advantage © The McGraw-Hill Companies, Inc., 2001 C HASE A QUILANO J ACOBS ninth edition 1 The AHP Method  Multi.

Multi Criteria Decision Modeling Preference Ranking The Analytical Hierarchy Process.

THE ANALYTIC HIERARCHY PROCESS. Analytic Hierarchy Process ► Analytic Hierarchy Process (AHP) is a multicriteria decision-making system. ► AHP was developed.

1 The Analytic Hierarchy Process. 2 Overview of the AHP 1.Set up decision hierarchy 2.Make pairwise comparisons of attributes and alternatives 3.Transform.

Introduction to Management Science

1 EXAM SCHEDULING PROBLEM: AN AHP MODEL FOR PARAMETER ESTIMATION Zehra KAMIŞLI ÖZTÜRK Anadolu University, Open Education Faculty Eskisehir/TURKEY

A semantic learning for content- based image retrieval using analytical hierarchy process Speaker ： Kun Hsiang.

Strategic Project Alignment With Team Expert Choice

9-1 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Multicriteria Decision Making Chapter 9.

Multicriteria Decision Making

9-1 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall Multicriteria Decision Making Chapter 9.

«Enhance of ship safety based on maintenance strategies by applying of Analytic Hierarchy Process» DAGKINIS IOANNIS, Dr. NIKITAKOS NIKITAS University of.

Presented by Johanna Lind and Anna Schurba Facility Location Planning using the Analytic Hierarchy Process Specialisation Seminar „Facility Location Planning“

THE ANALYTIC HIERARCHY PROCESS INTRODUCTION. The Analytic Hierarchy Process (AHP) is an alternate approach to expected utility. AHP successfully addresses.

Jason Chen, Ph.D. Professor of MIS School of Business

Quantitative Analysis for Management Multifactor Evaluation Process and Analytic Hierarchy Process Dr. Mohammad T. Isaai Graduate School of Management.

1 1 Slide © 2004 Thomson/South-Western Chapter 17 Multicriteria Decisions n Goal Programming n Goal Programming: Formulation and Graphical Solution and.

The Decision Making Process with EC2000-Keypad and Internet Versions.

Spreadsheet Modeling and Decision Analysis, 3e, by Cliff Ragsdale. © 2001 South-Western/Thomson Learning Multicriteria Decision Making u Decision.

The Analytic Hierarchy Process (AHP) is a mathematical theory for measurement and decision making that was developed by Dr. Thomas L. Saaty during the.

1 Chapter 16 The Analytic Hierarchy Process. 2 The analytic hierarchy process (AHP), which was developed by Thomas Saaty when he was acting as an adviser.

Recap: How the Process Works (1) Determine the weights. The weights can be absolute or relative. Weights encompass two parts -- the quantitative weight.

Chapter 9 - Multicriteria Decision Making 1 Chapter 9 Multicriteria Decision Making Introduction to Management Science 8th Edition by Bernard W. Taylor.

Multi Criteria Decision Making

A Decision Support System for Supplier Evaluation and Order Allocation M.A. Thesis By Emir Göçen Supervised by Aslı Sencer Department of MIS November 2008.

BestChoice: A Decision Support System for Supplier Selection in e-Marketplaces June 26, 2006 Dongjoo Lee, Tahee Lee, Sue-kyung Lee, Ok-ran Jeong, Hyeonsang.

MAINTENANCE STRATEGY SELECTION BASED ON HYBRID AHP-GP MODEL SUZANA SAVIĆ GORAN JANAĆKOVIĆ MIOMIR STANKOVIĆ University of Niš, Faculty of Occupational Safety.

Agenda for This Week Wednesday, April 27 AHP Friday, April 29 AHP Monday, May 2 Exam 2.

Analytic Hierarchy Process. 2 The Analytic Hierarchy Process (AHP) Founded by Saaty in It is a popular and widely used method for multi-criteria.

Multi-Criteria Analysis - preference weighting. Defining weights for criteria Purpose: to express the importance of each criterion relative to other criteria.

To accompany Quantitative Analysis for Management, 9e \by Render/Stair/Hanna M1-1 © 2006 by Prentice Hall, Inc. Upper Saddle River, NJ Analytic Hierarchy.

1 Chap 2 Organization Strategy and Project Selection.

BUSINESS PERFORMANCE MANAGEMENT

Analytic Hierarchy Process (AHP)

« Investment scenarios and regional factors in the solar energy sector » Dr. Nikolaos Apostolopoulos The Macrojournals /MacroTrends Conference: New York.

S ystems Analysis Laboratory Helsinki University of Technology 1 Decision Analysis Raimo P. Hämäläinen Systems Analysis Laboratory Helsinki University.

Resource Allocation Process Using Pareto Optimality Tools: GroupSystems/Expert Choice /Equity Bob BeardMark MacDonaldPeter Beck Decision Support Services.

Analytic Hierarchy Process Do your decision conferences turn out like this?

Constructing the PAHP-based Decision Support System by Considering the Ambiguity in Decision Making Norihiro Saikawa Department of Computer and Information.

ESTIMATING WEIGHT Course: Special Topics in Remote Sensing & GIS Mirza Muhammad Waqar Contact: EXT:2257 RG712.

Analytic Hierarchy Process Multiple-criteria decision-making Real world decision problems –multiple, diverse criteria –qualitative as well as quantitative.

Analysis of climate change mitigation tools in Ukraine

Reality of Highway Construction Equipment in Palestine

MULTI CRITERIA DECISION MAKING - APPLICATIONS IN PROJECT MANAGEMENT

Analytic Hierarchy Process (AHP)

The AHP Method Multi Criteria Decision Making Most popular method

A Scoring Model for Job Selection

Optimal marketing strategy: A decision-making with ANP and TOPSIS

ANALYTIC HIERARCHY PROCESS (AHP)

The Decision Making Process with EC2000-Keypad and Internet Versions

Analytic Hierarchy Process Prepared by Lee Revere and John Large

رويكردهاي MCDM (مطالعه موردي در مهندسی عمران)

Slides by John Loucks St. Edward’s University.

Agenda for This Week Monday, April 25 AHP Wednesday, April 27

Multicriteria Decision Making

IME634: Management Decision Analysis

Chapter 12 Analyzing Semistructured Decision Support Systems

AHP (Analytic Hierarchy process)

ANALYZING SUPPLIER SELECTION BY USING AN ANALYTICAL HIERARCHY PROCESS (AHP) AT AJ CONFECTIONARY SDN. BHD. Che Syahada Bt Che Azeman, Bachelor Degree Industrial.

Presentation transcript:

Executive Manager Decision Making and Policy Planning, typically with many goals Sometimes even > 1 decision maker (Game Theory, Group Decisions) Linear Programming with many goals -> Goal Programming Also decision problems that are not LP -> MCDM methods

Multi Criteria Examples Facility Location Supplier Selection Equipment Purchasing Prioritizing Projects Job Applicants Evaluation Environmental Assessment

EQI for Icelandic Power Plants Versatility, Uniqueness, Size, International Importance, Informational Value: Cultural Ecosystems Animal & Plant Species Earth & Water systems Geology, waste untouched areas Outdoor activities, tourism, farming, …

Multi Criteria Decision Making Goal Programming Pareto optimality MAUT, Multi Attribute Utility Theory, Keeney & Raiffa Europe: Electra (Roy et al.) USA : AHP (Saaty)

Goal Programming, GP LP model with many objective functions See AdGoals.xls in chapter 9 in W&A Soft vs Hard Constraints Deviation Variables Priorities, Preemptive Optimization Weights on Criteria

Pareto Optimality Not possible to improve one criteria while maintaining all others Trade-off curves, efficient frontier See Chemcon.xls and AdTradeoff.xls

Analytic Hierarchy Process Thomas Saaty 1975 Expert Choice Software ( >1500 books and papers on AHP Case Studies Collection See Solver3.xls (Facility Location) and AHPJobs.xls in chapter 9

AHP, Pros & Cons Pros: Doable Pairwise Comparison Consistency Index Cons: AHP scale (1-9) Difficult if very many alternatives

AHP method 1. Pairwise Comparison of Criteria => Weights of Criteria. Check Consistency. 2. Pairwise Comparison of Alternatives against each criteria => grading. Check Consistency. 3. Final grade calculated from weights and grading for each criteria. Sensitivity Analysis

AHP Scale 1Equal 3Slightly more important 5Strongly more important 7Very strongly more important 9Absolutely more important

Pairwise Comparison Wi = Weight of Criteria nr. i W1/W1W1/W2W1/Wn W2/W1W2/W2W2/Wn A = Wn/W1Wn/W2Wn/Wn

Consistency Check 1. Calculate A*w’ 2. M = (1/n)*  i (A*w’) i /w’ i 3. CI = (M – n)/(n – 1) 4. CI/RI > 0,1 => Inconsistency Where: n = => RI = 0 0,58 0,90 1,12 1,24 1,32 1,41

Pareto Efficient Frontier Grade for other Cost Alt 1 Alt 2 Alt 3 Alt 4 Alt 5