EXPERT CHOICE SOFTWARE AHP FREE DOWNLOAD SOFTWARE

Expert Choice a company that specializes in AHP design software and performs services with it.5314 1.0000 Based on the scored Location C should be chosen for Jilley Bean Co. 0612 Location Price Distance Labor Wages A. Clearly the price of the land is #1, followed by distance to suppliers, labor pool quality, and last cost of wages.ДЇINAL CALCULATIONS Take the criteria matrix and multiple it by the preference vector CRITERIA Price.Row average= preference vector for the criteria CRITERIA Price. You should arrive at the following : Criteria Price Distance Labor Wage Row Average Price. Repeat steps 1-4 with the new matrices.Criteria Price Distance Labor Wages Price 1 1/5 3 4 Distance 5 1 9 7 Labor 1/31/9 1 2 Wages 1/41/7 1/2 1 How it is done ~ STEP FIVE Rank the criteria in order of importance ~use the same method used in ranking each criterion. Arriving at the following Location Price Distance Labor Wages A. How it is done ~ STEP FOUR Find the average for all the criterion by doing steps 1-3 on all the criteria. Next convert fractions to decimals and find the average of each row.NOTICE: the values in each column sum to 1. Next the values in each column are divided by the corresponding column sums.First sum (add up) all the values in each column.

Showing that in preference in price A and C are the equally preferred but are preferred over B.

Matrices given criteria and preferences PRICE A B C A 1 3 2 B 1/3 1 1/5 C 1/2 5 1 PRICE A B C A 1 3 2 B 1/3 1 1/5 C 1/2 5 1 DISTANCE A B C A 1 6 1/3 B 1/6 1 1/9 C 3 9 1 LABOR A B C A 1 1/3 1 B 3 1 7 C 1 1/7 1 They have three locations to decide from. has four criteria they will base their decision on these are the following: property price, distance from suppliers, the quality of the labor pool, and the cost of labor. The company want to use AHP to help it decide which location to build its new plant. is selecting a new location to expand its operations. The score of B to B is 7 and A to B is the reciprocal or inverse of 1/7 Matrices of A and B COST A B A 1 7 B 1/7 1 COST A B A 1 7 B 1/7 1 QUALITY A B A 1 1/3 B 3 1 Since price B is very strongly preferred to the price of A.

The matrices of these preferences would look like. Which do you choose? By making a matrix the price of B is very strongly preferred to A and A is only moderately preferred to B. The cost for B=$15 and the quality is right at average. The cost for A= $60 and the quality is above average.

Because the standard preference table has been determined by experienced researchers in AHP to be a reasonable basis for comparing two alternatives.

Why not make up your own preference table ? Standard Preference Table PREFERENCE LEVEL Equally preferred Equally to moderately preferred Moderately preferred Moderately to strongly preferred Strongly preferred Strongly to very strongly preferred Very strongly preferred Very strongly to extremely preferred Extremely preferred NUMERICAL VALUE 1 2 3 4 5 6 7 8 9

The question вЂњWhich one do we choose?вЂќ or вЂњWhich one is best ?вЂќ by selecting the best alternative that matches all of the decision makerвЂ™s criteria.

AHP is a process for developing a numerical score to rank each decision alternative based on how well each alternative meets the decision makerвЂ™s criteria.

According to Operations Management 4th Edition by Russell and Taylor III it is a quantitative method for ranking decision alternatives and selection the one given multiple criteria.

Analytical Hierarchy Process ( AHP ) By Jennifer McBride Operations Management May 6, 2003

Expert Choice Software Ahp Free Download