Hierarchical Representation of Decision-Making in Chartering a Vessel on a Voyage Charter

Abstract

This paper presents a decision-making method (analytic hierarchy process) for choosing a charter option by means of a subjective preference vector. Analytic hierarchy process (AHP) is a rather general methodology for solving a broad range of weakly structured decision-making problems that combines a fairly simple mathematical method with the manager’s knowledge, experience, and imagination. This paper investigates AHP application by a manager who is not an expert in chartering. To describe the method, the paper presents a case study of chartering a vessel to freight bulky, heavy cargo.