MIS410: Management Information Systems Analytical Hierarchy Process AHP

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MIS410 Management Information
SystemsAnalytical Hierarchy Process (AHP)

• LAB 4 Topics
• Dr. Israr Khan

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Goal Select best car

• Accord
• Camry
• Altima
• Maxima
• Mazda 929

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Analytical Hierarchy Process

• Determines the weights on objectives, and the
  performance of
• alternatives on these objectives by pair-wise
  comparison.
• Assumes that the weights of objectives are
  independent of the
• scale used for the evaluation of alternatives.
• Steps Followed
• 1. Decide the overall objective (goal) of the
  decision
• 2. Develop a hierarchy of objectives
• Identify a unique, measurable attribute for every
  sub-objective
• Identify the alternatives available
• Assess performance of alternatives on every
  objective on a scale of 1-9 (by pair-wise
  comparison for all combinations of alternatives)
• Assign weights to objectives (by pair-wise
  comparison of all objectives.)

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Factors for selecting car

• Cost of Automobile
• Maintenance of car
• Prestige of car
• Quality of features

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Cost of the Car

• Accord SR 84,000
• Camry SR 73000
• Altima SR 68000
• Maxima SR 80000
• Mazda 929 SR 60000

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Maintenance Costs

• Insurance Cost
• Warranty
• Fuel Economy
• Service charge (Parts and Labor)

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Prestige of the Car

• Accord Very prestigious
• Camry prestigious but in Taxi
• Altima prestigious
• Maxima prestigious
• Mazda 929 not that prestigious

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Quality of features

• Safety
• Frequency of Breakdown
• Performance
• Design of the car
• Driving Comfort

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Assessments

• Verbal Assessment
• Numeric Assessment
• Graphic Assessment