Quantitative Analysis for Management, 13/e

M1.3 Comparison of Multifactor Evaluation and Analytic Hierarchy Processes

Multifactor decision making has a number of useful and important applications. If you know or can determine with confidence and accuracy the factor weights and factor evaluations, the MFEP is preferred. If not, you should use the AHP. As it turns out, the AHP also gives the factor weights and factor evaluations from which the final selection can be made. The only difference is that with the AHP, we compute the factor weights and factor evaluations from a number of pairwise comparison matrices. We also compute a consistency ratio to make sure that our responses to the original pairwise comparison matrix are consistent and acceptable. If they are not, we should go back and ...