Importance Of The Analytic Hierarchy Process

In our daily life, we cannot avoid from making decisions. We must constantly make decisions concerning what tasks to do or not to do and when to do them. We will face many problems that need to make wise and best decision whether it is personal decision, business decision or local and national governmental decision. For instance, buying the most cost effective home computer expansion, choosing a career, buying equipment, deciding on inventory levels, how to allocate funds within a department and how to vote on a city council issue. All of these are basically problems when making choice. We, as human, our mind cannot think comprehensively all the factors and their consequences simultaneously. So, people solve these problems based on intuitive or not verify assumptions that may not give the clearly useful result. Therefore, we need guideline to help us in making a wise decision. Thus, the Analytic Hierarchy Process act as an effective tool for dealing with complex decision making and may aid the decision maker to set priorities as well as make the best decision. The Analytic Hierarchy Process was introduced by Thomas Saaty in 1980.

Analytic Hierarchy Process help to capture both subjective and objective aspects of a decision. A general rule is that the Analytic Hierarchy Process should be complex enough to capture the situation but small and nimble enough to be sensitive to