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Designed to solve complex multicriteria decision problems Requires the decision maker to provide judgements about the relative importance of the criteria Specify a preference for each decision alternative using each criterion Process involves pairwise comparison among criteria and pairwise comparison among decision alternatives Output is prioritized ranking of the decision alternatives based on the overall preferences expressed by the decision maker. Can handle subjective assessment of individuals
Step 1 : Developing the Hierarchy Graphically represent the problem in terms of the overall goal, criteria used & the decision alternatives
The Process
Specify judgments about the relative importance of each of the four criteria in terms of its contribution to the overall goal At the next level, the decision maker indicates the preference for each alternative based on each criterion A mathematical process synthesizes the information on the relative importance of the criteria and preferences for the alternatives to provide an overall priority ranking of alternatives
Establishing priorities for the four criteria in terms of how each contributes to the overall goal of selecting the best car Requires the decision maker to state how important each criterion is relative to each other criterion when comparison is done pairwise. In each comparison, one has to select the more important criterion & state how much more important the criterion is.
Pairwise comparison
Verbal description of the relative importance between the two criteria are converted into a numerical rating
The column Most Important criterion indicate which row of the pairwise comparison matrix the numerical ratings must be placed in.
Synthesization
Priority of each criterion in terms of its contribution to the overall goal of selecting the best car.
Step 1
Step 2
Step 3