Integration Of Analytic Hierarchy Process Research Articles

ANALİTİK HİYERARŞİ SÜRECİ İLE AĞIRLIKLANDIRILMIŞ DİNAMİK PROGRAMLAMA MODELİNİN SATIN ALMA SÜRECİNE UYGULANMASI

Decision making is a significant and complex process for businesses. Increase in the number of alternatives and criteria, complicates the decision maker’s role in this process who will make a choice among the conflicting criteria. In this study it is aimed to determine the purchasing and inventory plan in accordance with multiple criteria. This plan is derived by the integration of Analytic Hierarchy Process (AHP), one of the multi criteria decision making methods used for the solution of problems involving quantitative and qualitative multiple criteria, with the Dynamic Programming (DP) model. By using the weights calculated through AHP the optimal result can be obtained with DP for the dynamic inventory and purchasing problem.

Integration of AHP-QFD for selecting facility location

Purpose – The purpose of this paper is to describe and implements an analytic hierarchy process (AHP)-QFD model for selecting the best location from an organization point of view which picks the site with the best opportunity requirements. Integration of AHP-QFD process gives us a new approach to assist organizations through observing various factors and selecting the best location among different alternatives. This approach uses AHP method to match the preferences required by decision makers and these preferences are applied to the characteristics of QFD. The model fundamental requirement are perfect potential locales and the areas are contrasted and both quantitative and qualitative elements to permit directors to join managerial experience and judgment in the answer process. The AHP-QFD model is also applied on a case study to illustrate the solution process. Design/methodology/approach – The integration of AHP and QFD is used to analyze available options and select the best alternative. This can be done by ranking each criterion through a pairwise comparison. Given collected data, the QFD approach is used to find the capability of each criterion. Findings – Integration of AHP-QFD is used to select the best alternative in facility location. This integrated approach can be best used in dealing with facility location problems. Originality/value – The developed AHP-QFD model in facility location problems, facilitates the inclusion of market criteria and decision maker opinion into the traditional cost function, which has been mainly distance base in the literature.

Mark-up Size Estimation in Railway Projects using the Integration of AHP and Regression Analysis Techniques

The construction industry is commonly characterized by high level of competition. Since the large majority of the contractors win jobs through the bidding process and the owners predominantly select the contractors, who offer the lowest bid price, estimating the bid price accurately is critical for winning the contract and achieving business continuity. The bid price mainly consists of two components, which are: the base estimate and the bid mark-up. In general, the bid mark-up is estimated as the percentage of the base estimate based on the estimators’ intuitions and past experiences. While the base estimate is found to be more or less same by competitor contractors, the offered bid prices greatly differ due to the variations in the bid mark-up size estimations. The bid mark-up size is affected by several factors. Therefore, determining the appropriate bid mark-up size is a complex decision problem. The main objective of this study is to propose an integrated approach, which may assist contractors in estimating the bid mark-up size more accurately and systematically. The main steps in the proposed approach include: 1) identifying the factors that may affect the bid mark-up size and categorization of these factors and developing a decision hierarchy of the mark-up size estimation problem (i.e., identifying the main criteria and sub-criteria), 2) determining the weights of the main criteria and sub-criteria in the mark-up size estimation problem using the Analytic Hierarchy Process (AHP) approach by top managers considering the long-term strategies of the company, 3) identifying the importance levels of the main criteria and sub-criteria for the projects for which the company management is willing to offer bids, 4) determining the overall risk score of the projects in question by incorporating the weights and importance levels of the main criteria and sub-criteria, 5) estimating the bid mark-up size using the regression analysis, and 6) measuring the performance of the developed regression model. The proposed approach was applied in a contracting company, which is specialized in railway projects. Actual data of 10 railway projects completed in foreign countries within the last five years were collected from the top managers and estimators of the studied company. It was found that the bid mark-up size can be accurately estimated by the proposed approach.

Environmental hazard mapping using GIS and AHP – A case study of Dong Trieu District in Quang Ninh Province, Vietnam

In recent years, Vietnamese economy has been growing up rapidly and caused serious environmental quality plunging, especially in industrial and mining areas. It brings an enormous threat to a socially sustainable development and the health of human beings. Environmental quality assessment and protection are complex and dynamic processes, since it involves spatial information from multi-sector, multi-region and multi-field sources and needs complicated data processing. Therefore, an effective environmental protection information system is needed, in which considerable factors hidden in the complex relationships will become clear and visible. In this paper, the authors present the methodology which was used to generate environmental hazard maps which are applied to the integration of Analytic Hierarchy Process (AHP) and Geographical Information system (GIS). We demonstrate the results that were obtained from the study area in Dong Trieu district. This research study has contributed an overall perspective of environmental quality and identified the devastated areas where the administration urgently needs to establish an appropriate policy to improve and protect the environment.

Multiproduct vendor selection with volume discounts as the fuzzy multi-objective programming problem

Vendor selection in supply chain is a multi-criteria problem that involves a number of quantitative and qualitative factors. This paper deals with a concrete problem of flour purchase by a company that manufactures bakery products. The selection process is driven by the price, reliability and quality objectives of the buyer and is subject to the capacity constraints of the vendors in the situation where all suppliers offer several kinds of flour (multiproduct situation). Vendors often offer quantity discounts, i.e. the purchasing price of flour depends on the quantity ordered. The multiproduct situation complicates the mathematical formulation of the problem and in this context it is much more convenient to consider the discounts of the money volume of business with every vendor. This problem has been solved using an integration of analytic hierarchy process (AHP), weighted sum model (WSM) and fuzzy multi-objective mixed-integer programming to define the optimum quantities among the selected suppliers.

Integration of analytic hierarchy process and Dempster-Shafer theory for supplier performance measurement considering risk

Purpose – The purpose of this paper is to provide proactive supply chain performance method considering risk which can be used during the supplier selection/assessment process. Design/methodology/approach – In this paper, the effort is to present a model for evaluating the supply-related risk, which is based on the analytic hierarchy process (AHP) method and the Dempster-Shafer theory (DST). The proactive risk management methods used in this research is: seeking risk sources and identifying the variables to be used in the model, preprocessing the variables data to get the directions of the variables and the risk bounds, assigning variables weights via AHP method and finally evaluating the supply risk via DST method and determine the final risk degree. Findings – The paper contributes to research in risk assessment in the specific field of supplier performance measurement. In this paper, a hybrid model using AHP and DST for risk assessment of supplier based on performance measurement is presented. An empirical analysis is conducted to illustrate the use of the model for the risk assessment in supply chain. Research limitations/implications – This methodology can be adopted by supply chain managers to evaluate the level of risk associated with current suppliers, and to assist them in making outsourcing decisions. Originality/value – The proposed method makes a contribution by including risk as a performance measure in supply chain. The generated proactive supply risk assessment process uses a hybrid model of AHP and DST providing a novel approach for performance measurement which will be valuable both to academics and practitioners in this field.

Integration of analytic hierarchy process and weighted goal programming for land use optimization at the watershed scale

In recent decades, the Hulu Langat Basin in Malaysia has been exposed to extensive changes in land use pattern and consequently hydrological conditions. Maintaining a reasonable balance between environmental currents and governmental/population demands is a difficult task. In this work, 3 land use scenarios were defined, which are the present (baseline), future, and water conservation plans. Weighted goal programming (WGP), integrated with the analytic hierarchy process (AHP), was used to optimize the baseline land use scenario with consideration of water conservation outcomes and future development trend. Three types of objectives were involved in the AHP-WGP approach, i.e. social, economic, and environmental. The values of environmental objectives were estimated using the optimized Soil and Water Assessment Tool (SWAT). Four planning alternatives were defined and formulated, i.e. A1, A2, B1, and B2. The AHP-WGP approach resulted in 4 optimized land development alternatives. In terms of the water conservation objective, alternatives A1 and B1 were more desirable than alternatives A2 and B2, respectively. However, due to the existing socioeconomic-environmental circumstances within the Hulu Langat Basin, alternatives B1 and B2 were more appropriate.

Use of Swot and Analytic Hierarchy Process Integration as a Participatory Decision Making Tool in Watershed Management

The most critical issue of the decision making process in watershed management is the active involvement of a range of stakeholder groups whose views usually conflict with each other. Participatory approaches must fully respect the knowledge, experiences, values, and interests of various stakeholders. This study addresses the Beyşehir Lake Basin, the largest freshwater lake in Turkey, and focuses on inhabitants’ perceptions and approaches in order to find out the optimal watershed management strategies. The study illustrates the feasibility of SWOT analysis and Analytic Hierarchy Process (AHP) integration to incorporate stakeholder preferences in the decision making process. The results provide the following crucial information: (i) the main problems of the basin (ii) the most important advantages of the basin in terms of ‘Strengths’ and ‘Opportunities’ (iii) the most important disadvantages of the basin in terms of ‘Weaknesses’ and ‘Threats’ (iv) the most appropriate watershed management strategies those enable ecological and socio-cultural sustainability of the basin.

Performance measurement systems for green supply chains using modified balanced score card and analytical hierarchical process

Environmental management is becoming a key strategic issue for Supply chain performance. Performance measurement systems for green supply chain is critical for its monitoring, control and improvement. A comparative analysis of some most widely cited Performance measurement systems for supply chains have been undertaken, and it indicates that the modified Balanced score card is a suitable framework for Green supply chain performance measurement. However, there are limitations in this framework when they are used for strategic alignment and planning. The frameworks do not provide weightings to the performance indicators nor does it tell the management the contribution of each performance indicator in achieving organisational goals. Use of Analytic hierarchy process, along with modified balanced score card helps in tiding over these limitations. This paper demonstrates integration of Analytic hierarchy process with modified Balanced score card to facilitate effective Green supply chain performance measurement. Key words: Analytic hierarchy process (AHP), balanced score card (BSC), performance measurement system (PMS), green supply chain (GSC).

Integration of Analytic Hierarchy Process with Regression Analysis to Identify Attractive Locations for Market Expansion

ABSTRACTSelection of new geographies in which to expand is a key decision for businesses aspiring to go beyond the opportunities in the existing markets. The conventional approaches of market selection can only provide a set of systematic steps for problem solving without considering the relationships between the decision factors. Decision models based on statistical techniques are able to examine the relationship between decision factors but are unable to effectively assist decision makers in identifying the most promising market, particularly in terms of prioritizing across decision factors. Analytic Hierarchy Process (AHP) is a commonly used approach for choosing alternatives by prioritizing across multiple decision factors. The typical AHP modelling requires knowledge of criteria and/or alternatives along with their relative weights, generally elicited from field experts. Quite often, firms encounter situations where decision makers are aware of only the overall objective and a set of earmarked geographies for setting up market locations while being relatively unaware of decision criteria and relative weights. This precludes using AHP to identify promising market locations. This paper conceptualizes a market selection decision model that integrates AHP with statistical modelling techniques to identify the attractive market locations for the purpose of expansion. The model first uses principal component analysis and multiple regression to determine significant decision criteria and their weights. Thereafter, it applies AHP to prioritize the market locations across the decision criteria. This integrative approach is illustrated for identifying the attractive locations in rural markets for a steel firm in India. The major advantage of this approach is that unlike the existing models, it works in situations when firms have not enough knowledge about factors for evaluating alternative market locations. Another key advantage of the proposed model is that of economizing resources for data collection on variables representing decision factors. Copyright © 2012 John Wiley & Sons, Ltd.

Strategic decision for the external technological innovation acquisition mode selection by using an integration of AHP and GRA methods: A case study on a Thai new technology-based firm

The selection of the most appropriated external technological acquisition mode for a specific technological innovation is one of the important strategic decision-makings. To solve the complicated decision making problem, this study aims (i) to identify the multi-attribute criteria which influenced the selection of the external technological innovation acquisition mode and (ii) to illustrate the comprehensive proposed model by applying Multi-Criteria Decision Making (MCDM) approach, which was combined of Analytic hierarchy process (AHP) and Grey Relational Analysis (GRA) methods. The result can provide the prioritization of the relative important weight of criteria and the final ranking of alternative. This study is expected to effectively assist the managements or the decision-makers to choose the best appropriated alternatives which matched with their business objectives. A study case for the Thai technology-based firm was also applied in this article. KeywordsAnalytic hierarchy process, External technological innovation acquisition mode, Grey relational analysis, Multi-criteria decision-making method.

Integrating multi-criteria evaluation techniques with geographic information systems for landfill site selection: A case study using ordered weighted average

This paper presents a GIS-based multi-criteria decision analysis approach for evaluating the suitability for landfill site selection in the Polog Region, Macedonia. The multi-criteria decision framework considers environmental and economic factors which are standardized by fuzzy membership functions and combined by integration of analytical hierarchy process (AHP) and ordered weighted average (OWA) techniques. The AHP is used for the elicitation of attribute weights while the OWA operator function is used to generate a wide range of decision alternatives for addressing uncertainty associated with interaction between multiple criteria. The usefulness of the approach is illustrated by different OWA scenarios that report landfill suitability on a scale between 0 and 1. The OWA scenarios are intended to quantify the level of risk taking (i.e., optimistic, pessimistic, and neutral) and to facilitate a better understanding of patterns that emerge from decision alternatives involved in the decision making process.

Improved PSO in Water Supply Systems Based on AHP-RS and RBF Neural Network

A evaluation model based on the integration of analytic hierarchy process(AHP)-rough set theory (RS) and radial basic function (RBF) neural network is put forward for grasping the hydropower project financing risk.The Particle Swarm Optimization (PSO) algorithm is implemented to optimize the node numbers of the hidden layers in the model. The study indicates that the AHP-RS and RBF neural network connecting with improved PSO method is an attractive alternative to the conventional regression analysis method in modeling water distribution systems.

Integrated application of the analytic hierarchy process and the geographic information system for flood risk assessment and flood plain management in Taiwan

Flooding is one of the major natural hazards in Taiwan, and most of the low-lying areas in Taiwan are flood-prone areas. In order to minimize loss of life and economic losses, a detailed and comprehensive decision-making tool is necessary for both flood control planning and emergency service operations. The objectives of this research were (i) to develop a hierarchical structure through the analytic hierarchy process (AHP) to provide preferred options for flood risk analysis, (ii) to map the relative flood risk using the geographic information system (GIS), and (iii) to integrate these two methodologies and apply them to one urban and one semi-rural area in central Taiwan. Fushin Township and the floodplain of Fazih River (1 km on either side of the channel) in Taichung City were selected for this study. In this paper, the flood risk is defined as the relative flood risk due to broken dikes or the failure of stormwater drainage systems. Seven factors were considered in relation to the failure of stormwater drainage, and five to that of broken dikes. Following well-defined procedures, flood maps were drawn based on the data collected from expert responses to a questionnaire, the field survey, satellite images, and documents from flood management agencies. The relative values of flood risk are presented using a 200-m grid for the two study areas. It is concluded that integration of AHP and GIS in flood risk assessment can provide useful detailed information for flood risk management, and the method can be easily applied to most areas in Taiwan where required data sets are readily available.

Combining Gray Relation and Analytical Hierarchy Process Concepts to Develop a Decision Support System of Supply Chain Project Management

Abstract Supplier selection is an important decision for effective supply chain project management (SCPM) of Notebook PC. Due to global business competition, suppliers are required to supply raw materials with the right quality and quantity. Suppliers are responsible for reducing the inventory costs and improving product quality. This paper deals with the development of a decision support system based on the integration of analytical hierarchy process and gray relational analysis for supplier selection. The additive normalization method is used as the prioritization method to calculate the priority vector. The analysis results indicate that the proposed selection model enables the manager to select the SCPM of Notebook PC more objectively by allowing them to deploy effectively. The proposed model can also be applied to other high technology factories, thus enhancing Taiwanese competitive advantage.

The Evaluation Model of the Hydropower Project Financing Risk Based on AHP-RS and RBF Neural Network

A evaluation model based on the integration of analytic hierarchy process (AHP)-rough set theory (RS) and radial basic function (RBF) neural network is put forward for grasping the hydropower project financing risk. Firstly, the evaluation indicator system is constructed by AHP, then the evaluation indicators are discretized by RS neural network. And then, RBF neural network is used to evaluate the hydropower project financing risk. In order to grasp this evaluation model better, finally, the paper provides an example to demonstrate the application of this evaluation model.

AQUA: Analytical model for evaluation and selection of Third-Party Logistics service provider in supply chain

Selection of Third-Party Logistics (3PL) service provider is a strategic decision making in supply chain network. The challenge and need for supply chain analyst is to develop a real-life simple and implement-ease model, which can handle the voice of customer and internal and external business metrics for evaluation and selection of 3PL service provider. We develop a three-phase analytical model with the integration of Analytic Hierarchy Process (AHP) and Quality Function Deployment (QFD). In the current competitive scenario, the consideration of business metrics and voice of customer for evaluating the selection criteria of 3PL service provider benchmarks the agility of an organisation. The analytical model is validated and illustrated with a real-life case study.

Sustainability assessment of flooring systems in the city of Tehran: An AHP-based life cycle analysis

In recent years, numerous attempts have been made to reduce the global environmental and associated socio-economic impacts of construction activities to achieve sustainable development goals. A sustainable system or activity refers to an eco-friendly, cost effective and socio-politically viable solution. This paper utilizes triple-bottom-line (TBL) sustainability criteria for the selection of a sustainable flooring system in Tehran (Iran). Three types of block joisted flooring systems – concrete, clay, and expanded polystyrene (EPS) blocks – have been investigated using life cycle analysis (LCA). Proposed approach provides a comprehensive evaluation system based on TBL criteria that are further divided into thirteen sub-criteria. It includes: (1) Environmental concerns (resource depletion, waste and emissions, waste management, climate change, environmental risk, embodied energy and energy loss); (2) Economic concerns (material cost, construction cost, and occupation and maintenance cost); and (3) Socio-political issues (social acceptance, vulnerability of area, and building weight). Analytical hierarchy process (AHP) is used as a multi-criteria decision making technique that helps to aggregate the impacts of proposed (sub)criteria into a sustainability index (SI) through a five-level hierarchical structure. Integration of AHP and LCA provides a framework for robust decision making that is consistent with sustainable construction practices. A detailed analysis shows that the EPS block is the most sustainable solution for block joisted flooring system in Tehran.

Integration of analytic hierarchy process and data envelopment analysis for assessment and optimization of personnel productivity in a large industrial bank

This paper presents an integration of analytical hierarchy process (AHP) and data envelopment analysis (DEA) for assessment and optimization of personnel productivity in a large private bank. In this algorithm the effective personnel operation indicators are evaluated by the management which is usually in qualitative forms and converted to quantitative forms by using AHP. Then, the ranking and efficiency of the organization will be assessed and optimized by DEA. Principal components analysis (PCA) and numeral taxonomy (NT) are applied to verify and validate the ranking results of the DEA method. We applied this algorithm in various branches of the Bank of Industry and Mine in Iran. The proposed framework may be used to study and optimize personnel productivity in large banks. This is the first study that integrated DEA and AHP for optimization of personnel productivity in large banks based on both qualitative and quantitative indicators.

Information Technology Implementation Prioritization in Supply Chain

The increasing rate of technology growth has resulted in decrease in cost of information. These technologies are helpful in coordinating the activities resulting in effective management of the supply chain. Literature shows that the use of Information Technology (IT) plays an important role in managing the processes of SCM. This has resulted in increasing use of IT in SCM. The computerization of SCM processes, if implemented in one go may result in failure. IT implementation prioritization in supply chain is a major issue before the planner as there is no clear cut formula to solve this problem. This paper considers components of SCM like material management, purchase management, production management, logistics and distribution and customer interface for IT implementation prioritization. Two multi-criteria decision making methods (MCDM) viz. analytical hierarchy process (AHP) and a technique for order preference by similarity to ideal solution (TOPSIS) are used in this paper. The novelty of the paper lies in integration of AHP and TOPSIS methods for IT implementation prioritization. The weights of the criterions and the alternatives are calculated using AHP method which is used as an input for TOPSIS analysis for prioritization of IT implementation.