MCDM-APH method in decision making

Abstract

The MCDM-APH (Multi-Criteria Decision Making - Analytic Hierarchy Process) is a tool that makes complex decisions. MCDM is a systematic approach that evaluate conflicting criterias in decision making, one of these approaches is APH which uses a mathematic method to derive a relative importance of criteria in a decision problem.

The method was developed in the 1970s by Thomas Saaty, AHP is a mathematical method that is used to derive the relative importance of criteria in a decision problem. The idea behind the method is that a decision problem can be represented as a hierarchical structure, with the most important criteria at the top followed by the lesser important criteria at the bottom. There are four steps involved in the AHP process, the first is to decide what the decision problem is and what the criteria are, the second step in the process is to identifying the criteria and put them in hierarchical structure where the most important is at the top followed by the lesser important criteria and the least important at the bottom, in the third step the relative importance of each criteria is decided this is used to pairwise compare all the criteria, the final step is to combine the criteria into a single overall decide.