Analytical Hierarchy Processes (AHP) - ERP

AHP is Analytical Hierarchy Processes. AHP can be defined as in simple terms a process where decision problem are solved. Multiple solutions has to be found out for the decision problem and then priorities are made according to the alternatives. 

In this approach a complex or difficult decision is break into one or more levels where through ratio comparison evaluation or assessment can be done. 

1. Level 1 denotes goal 

2. Level 2 denotes critical factors

3. Level 3 decision alternatives.

”Analytical Hierarchy Process (AHP) is an approach to decision making that involves structuring multiple choice criteria into a hierarchy, assessing the relative importance of these criteria, comparing alternatives for each criterion, and determining an overall ranking of the alternatives”

What is analytical hierarchy process (AHP)? 

By organizing and assessing alternatives against a hierarchy of multifaceted objectives, AHP provides a proven, effective means to deal with complex decision making. Indeed, AHP allows a better, easier, and more efficient identification of selection criteria, their weighting and analysis. Thus, AHP reduces drastically the decision cycle. 

Benefits of the analytical hierarchy process (AHP) 

AHP helps capture both subjective and objective evaluation measures, providing a useful mechanism for checking the consistency of the evaluation measures and alternatives suggested by the team thus reducing bias in decision making. AHP allows organizations to minimize common pitfalls of decision making process, such as lack of focus, planning, participation or ownership, which ultimately are costly distractions that can prevent teams from making the right choice.


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