Analytic Hierarchy Process(AHP)

1

The Analytic Hierarchy Process (AHP) is a structured technique for organizing and analyzing complex

decisions, based on mathematics and psychology. It was developed by Thomas L. Saaty in the 1970s and has been extensively studied and refined since then.

Analytic Hierarchy Process4 Major Steps of AHP:

2

Analytic Hierarchy Process

3

Saati Scale

4

Analytic Network Process(ANP)

5

The Analytic Network Process (ANP) is a more general form of the analytic hierarchy process (AHP) used in multi-criteria decision analysis.

AHP structures a decision problem into a hierarchy with a goal, decision criteria, and alternatives, while the ANP structures it as a

network. Both then use a system of pairwise comparisons to measure the weights of the components of the structure, and finally to rank the

alternatives in the decision.

Analytic Network Process

6

In a hierarchy, alternatives affect (depend on) the criteria, criteria affect goal. It is assumed that:– Criteria do not affect alternatives– Criteria do not depend on each other– Alternatives do not depend on each otherIn complex decisions there may be dependence and feedback.Network model with dependence and feedback improves the priorities derived from judgments and makes prediction much more accurate

Analytic Network Process4 Major Steps of ANP:

7

Step1: Model Construction and Problem Structuring

Step2: Pairwise Comparison Matrices and Priority Vectors

Step3: Supermatrix Formation

Step4: Selection of The Best Alternatives

Analytic Network Process

8

Step1: Model Construction and Problem Structuring

The problem should be stated clearly and be decomposed into a rational system, like a network. This network structure can be obtained by decision-makers through brainstorming or other appropriate methods.

Analytic Network Process

9

Step2: Pairwise Comparison Matrices and Priority Vectors

Similar to the comparisons performed in AHP, pairsof decision elements at each cluster are compared with

respect to their importance towards their controlcriteria. The clusters themselves are also compared

pairwise with respect to their contribution to theobjective. Decision-makers are asked to respond to a

series of pairwise comparisons of two elementsor two clusters to be evaluated in terms of their

contribution to their particular upper level criteria.

Analytic Network Process

10

Step2: Pairwise Comparison Matrices and Priority Vectors

In addition, interdependencies among elements of a cluster must also be examined pairwise;

the influence of each element on other elements can be represented by an eigenvector. The relative

importance values are determined with Saaty’s 1–9 scale ,where a score of 1 represents equal

importance between the two elements and a score of 9 indicates the extreme importance of one element

(row cluster in the matrix) compared to the other one (column cluster in the matrix).

Analytic Network Process

11

Step2: Pairwise Comparison Matrices and Priority Vectors

A reciprocal like with AHP, pairwise comparison in ANP is performed in the framework of a matrix, and a local

priority vector can be derived as an estimate of the relative importance associated with the elements (or clusters)

being compared by solving the following equation:

Where A is the matrix of pairwise comparison, w is the eigenvector, and λ max is the largest eigenvalue of A.

Saaty proposes several algorithms to approximate w. In this paper, Expert Choice is used to compute the eigenvectors from the pairwise

comparison matrices and to determine the consistency ratios.

Analytic Network Process

12

Step3: Supermatrix Formation

The Supermatrix concept is similar to the Markov chain process.To obtain global priorities in a system with interdependent influences, the local priority vectors are entered in the appropriate columns of a matrix. As a result, a supermatrix is actually a partitioned matrix, where each matrix segment represents a relationship between two clusters in a system.The local priority vectors obtained in Step 2 are grouped and placed in the appropriate positions in a supermatrix based on the flow of influence from one cluster to another, or from a cluster to itself, as in the loop.

Analytic Network Process

13

Step4: Selection of The Best Alternatives

If the supermatrix formed in Step 3 covers the whole network, the priority weights of the alternatives can be found in the column of

alternatives in the normalized supermatrix. On the other hand, if a supermatrix only comprises clusters that are interrelated, additional calculations must be made to obtain the overall

priorities of the alternatives. The alternative with the largest overall priority should be selected, as it is the best alternative as determined by the calculations made using matrix operations.

Case Study

14

لیل به کارگیری تکنیک فرآیند تحلیل شبکه ای در تح

نقاط قوت، ضعف، فرصت و تهدید

(مطالعه موردی شرکت سهامی بیمه ایران)

Case Study

15

AHP ANP

Case Study

16

Case Study

17

Case Study

18

Case Study

19

Case Study

20

ماتریس مقایسه زوجی گروه SWOTهای

Case Study

21

وابستگی های درونی گروه SWOTهای

Case Study

22

Case Study

23

Case Study

24

.

.

.

Case Study

25

ماتریس درجه اهمیت استراتژی های جایگزین

Case Study

26

اولویت های نهایی گزینه های استراتژی

SO>WO>ST>WT