The Analytic Hierarchy Process
                                  Danny Hahn
         The Analytic Hierarchy Process (AHP) 
         „ A Decision Support Tool developed in the 1970s by Thomas L. Saaty, 
            an American mathematician, currently University Chair, Quantitative 
            Group, Katz Graduate School of Business, University of Pittsburgh.
         „ A theory and methodology for modeling problems in the economic, 
            social and management sciences. 
         „ A problem solving framework used for:
            ‰ Determining the best of several alternatives
            ‰ Setting Priorities
            ‰ Allocating Resources 
         „ Requires a “pair-wise” determination of the relative importance of each 
            of the criteria.
         „ “Expert Choice” is one commercial software tool based on the AHP. 
                                                                                    Slide 2
        The Process
       „ Break down an unstructured situation into its 
          component parts.
       „ Arrange the parts or variables into a hierarchic 
          order.
       „ Assign numerical values to subjective judgments on 
          the relative importance of each variable.
       „ Synthesize the judgments to determine which 
          variables have the highest priority and should be 
          acted upon to influence the outcome of the situation.
                                                              Slide 3
        The Hierarchy
                                   Goal
               Factor 1          Factor 2         Factor 3
                       Option 1             Option 2
                                                               Slide 4