Mini-course 1 Decision Analysis (Dr. Mariya Sodenkamp) / Class 5 / ITB_L5_ 2015_04_27
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Step 5: Synthesize local priorities in order to obtain global priorities and the overall outcome
Goal
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w12 |
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w311 |
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w31 |
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Global priority of any object in a hierarchy (e.g., decision maker, criterion, alternative or ADO) is its local priority multiplied by the global priority of ist parent element. E.g.,
w12global = w1 w12local
w121global = w12global w121local
goal
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w12 |
w13 |
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w31 |
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If an element has several parents, ist global priority on each path and sum them:
w121global = w1 w11 w12111 + w1 w12 w12112 , where
w12111 - weight of object w121 with respect to quality w11 w12112 - weight of object w121 with respect to quality w12
Car selection
GOAL
CRITERIA |
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Fuel Consumption |
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0.23 |
ALTERNATIVES |
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Car A: |
0.20 |
0.07 |
0.75 |
0.71 |
0.08 |
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Car B: |
0.25 |
0.24 |
0.18 |
0.21 |
0.26 |
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Car C: |
0.55 |
0.69 |
0.07 |
0.08 |
0.66 |
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synthesized priorities |
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C is the best family car |
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Exercise: Outsourcing Partner Selection
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Vendor A |
Vendor B |
Vendor C |
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Supplier's |
130 |
150 |
110 |
suggested price, |
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euro |
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Distance, km |
12,000 |
3,500 |
10,000 |
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Organizational |
good |
excellent |
satisfactory |
behavior |
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Adaption with |
complete |
partial |
complete |
the purchaser‘s |
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procedures |
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Based on the information above, which vendor is the most preferred (using the AHP)?
Step 5: Synthesize global priorities…
Valida3on Exercise: Rela3ve sizes of areas
Relative sizes of areas (cont’d)
0.05
0.47
0.10
0.15 |
0.24 |
Thank you very much!
IT in Business: Decision Analysis| © Sodenkamp