Analytical Hierarchical Process (AHP) for the selection of conveyance in a company that distributes cement blocks at a municipal level

Leonardo D. Bula,Boris Medina,Cesar Vergara Rodriguez

doi:10.17485/ijst/2018/v11i17/122390

Abstract

Objectives: This article shows the application of the Analytical Hierarchical Process to select conveyance in a company that distributes Cement Blocks. Methodology: The Analytical Hierarchical Process was applied taking into account the criteria, Variable Cost, Service, Capacity and Reliability, and conveyance that fit the characteristics of the municipality and the company. Findings: The Process, which allowed to evaluate these criteria and based on these determine the prioritization of the alternatives and the selection of the most efficient method according to the selected criteria. Application / Improvements: The Analytical Hierarchical Process (AHP) is a tool which allows supporting Decision Making, by analysing multiple criteria and depending on their relationship, obtaining a hierarchy in the alternatives, being the one with the greatest impact or hierarchy the decision to choose. Keywords: Alternatives, Analytical Hierarchical Analysis Process, Criteria, Hierarchy, Transportation MeansAHP

Highlights

Decision making is a fundamental part of the business world; in an increasingly competitive world, where strategic and tactical decisions in an organization can define its survival and positioning in a global market like today
When we face a process of decision making or alternatives selection, we must bear in mind that this decision is subject to various criteria or objectives; a feature that increases the complexity of the selection processes, generating tools that manage to involve each and every one of the evaluated criteria allowing selecting that alternative with the greatest impact on the organization
Method that consists in the realization of paired comparisons of previously established criteria being these, the dimensions that significantly affect the objectives, where the preferences of those involved in the decision making are indicated[12, 13, 14], these criteria must be Include quantitative and qualitative aspects

Summary

Introduction

Decision making is a fundamental part of the business world; in an increasingly competitive world, where strategic and tactical decisions in an organization can define its survival and positioning in a global market like today. The Analytical Hierarchical Process (AHP) is a tool, which allows decision making to be supported, by analysing multiple criteria and depending on their relationship, obtaining a hierarchy in the alternatives, with the decision having the highest impact or hierarchy to choose. This tool, due to its simplicity and clarity, allows it to be chosen as a methodology for decision making in small and medium-sized companies, achieving better strategic and tactical decisions. The present article describes the methodology used for the decision making of a conveyance for a concrete blockdistribution company at the municipal level, based on the Hierarchical Analysis Process, for its development an application was created in Excel allowing to automate the calculations and standardize the decision making process

Objectives

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Results

Conclusion