1. The AHP Method Multi Criteria Decision Making Most popular method
AHP: Analytic Hierarchy Process
Saaty 1975
See
Has been used in Iceland for ranking power plant alternatives by profitability and environmental impact

2. AHP
1. Define all relevant criteria and do pairwise comparison for importance => weights Wi
2. Define all relevant alternatives and do pairwise comparison against each criteria => scores Sij of each alternative for each criteria
3. Check for consistency, revise if necessary
4. Calculate weighted final score Fi = sum(i: Wi*Sij)

3. The AHP comparison 1 Equal 3 Minor difference 5 Certain difference
7 Great difference
9 Very great difference

4. AHP Example: Locating an Aluminium Smelter in Iceland
Criteria:
Labour, community and service
Harbour, roads and infrastructure
Power, closeness to a power plant
Alternatives:
Keilisnes
Eyjafjörður
Reyðarfjörður
See Excel-document