HOW TO OBTAIN A GLOBAL REFERENCE THRESHOLD IN AHP/ANP

Abstract

This paper has two main objectives. The first objective is to provide a mathematically grounded technique to construct local and global thresholds using the well-known rate of change method. The next objective, which is secondary, is to show the relevance and possibilities of applying the AHP/ANP in absolute measurement (AM) compared to the relative measurement (RM) mode, which is currently widely used in the AHP/ANP community. The ability to construct a global threshold would help increase the use of AHP/ANP in the AM mode (rating mode) in the AHP/ANP community. Therefore, if the first specific objective is achieved, it would facilitate reaching the second, more general objective. For this purpose, a real-life example based on the construction of a multi-criteria index and threshold will be described. The index measures the degree of lag of a neighborhood through the Urban and Social Deterioration Index (USDI) based on an AHP risks model. The global threshold represents the tolerable lag value for the specific neighborhood. The difference or gap between the neighborhood’s current status (actual USDI value) and this threshold represents the level of neighborhood deterioration that must be addressed to close the gap from a social and urban standpoint. The global threshold value is a composition of 45 terminal criteria with their own local threshold that must be evaluated for the specific neighborhood. This example is the most recent in a large list of AHP applications in AM mode in vastly different decision making fields, such as risk disaster assessment, environmental assessment, the problem of medical diagnoses, social responsibility problems, BOCR analysis for the evolution of nuclear energy in Chile in the next 20 years and many others. (See list of projects in Appendix).