Application of Analytical Hierarchy Process (AHP) in the Selection of a Flexible Production System

Abstract

The Analytic Hierarchy Process (AHP) is a structured technique for organizing and analyzing complex decisions, based on mathematics and psychology. It has application in group decision-making and is used worldwide in a wide variety of decision-making situations. Rather than prescribing a ""correct"" decision, AHP helps decision-makers choose the decision that best fits their goal and their understanding of the problem. The technique provides a comprehensive and rational framework for structuring a decision problem, representing and quantifying its elements, relating those elements to general objectives, and evaluating alternative solutions. Given each specific situation, making the right decisions is probably one of the most difficult challenges for managers. The obtained results allow the manager to evaluate the employees in an objective way and make an objective decision for their promotion. This tool not only supports and qualifies decisions, but also allows managers to justify their choices as well as simulate possible outcomes.