• Title/Summary/Keyword: Analytic Hierarchy Process Approaches

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Classification of the Analytic Hierarchy Process Approaches by Application Circumstances

  • Yoon, Min-Suk;Kinoshita, Eizo
    • Management Science and Financial Engineering
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    • v.16 no.1
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    • pp.17-46
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    • 2010
  • This paper studies six different AHP (Analytic Hierarchy Process) approaches and suggests that the features of the approaches are classified by application circumstances in order to contribute to the applicability and quality usage of the AHP. Our study investigates the hierarchical principles and characteristics of the AHP, and historical debates on the AHP evaluation in which the six approaches have been involved. One of six approaches is an ANP (Analytic Network Process) application that is directly connected to AHP usage. The application differences among the six approaches are validated with a plain example. Then, the four circumstances of AHP applications are classified by two dimensions: the first dimension is whether or not the importance (weights) of criteria is independent of restrictively setting alternatives, and the second dimension is whether or not preference (priorities) of alternatives is independent of adding alternative(s) to or removing alternative(s) from the considering set of alternatives. Then featuring way of weighting criteria is classified. We suggest the distinguishing manners and describe the implications of the AHP application. Finally, we discuss rank reversal and multiplicative AHP.

Operational Risk Measurement of Financial Institutions via AHP (AHP 분석을 이용한 금융기관 운영리스크 측정)

  • Choi, Seung-Il
    • Korean Management Science Review
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    • v.28 no.3
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    • pp.73-82
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    • 2011
  • Basel II advanced measurement approaches for operational risk need to estimate the frequency and severity distribution of operational losses. Due to lack of internal loss data, the estimation is impossible in many cases and so external loss data might be used by scaling on asset or gross income. To get around lack of loss data, scenario analysis combined with loss distribution approach can be useful in calculating the capital charge of operational risk. However, scenario based loss distribution approach requires much time and effort. Instead we may apply the analytic hierarchy process to measure operational risk of financial institutions. The analytic hierarchy process combined with loss distribution approach is to estimate the capital charge of operational risk in other areas based on the operational VaR in an area with sufficient loss data. AHP provides a tool for timely measurement of operational risk in this rapidly changing global environment.

MULTICRITERIA MODELS FOR GROUP DECISION MAKING : COMPROMISE PROGRAMMING VS. THE ANALYTIC HIERACHY PROCESS

  • Kwak, N.K.;McCarthy, Kevin J.
    • Journal of the Korean Operations Research and Management Science Society
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    • v.16 no.1
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    • pp.97-112
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    • 1991
  • This paper describes two contrasting approaches to group decision making involving multiple criteria. A compromise programming method and the analytic hierarchy process are analyzed and compared by using an illustrative example of a computer model selection problem to demonstrate their usefulness as a viable tool for group decision making. This paper further considers some extensions and modifications of there two methods for future study.

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Determining the Priorities of Korean Suicide Prevention Policies using Analytic Hierarchy Process(AHP) (AHP기법을 이용한 우리나라 자살예방정책의 우선순위 설정)

  • Kim, Hyo-Jin;Lee, Sue-Hyung;Kang, Eunjeong
    • The Journal of the Korea Contents Association
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    • v.15 no.1
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    • pp.252-263
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    • 2015
  • Since 2004 suicide in Korea was the number 1 cause of mortality among OECD countries, the suicides and suicide mortality rate is constantly increasing. Using AHP(Analytic Hierarchy Process), we examined the main approaches and detailed policies of suicide prevention to confirm an effective suicide policy. A workshop and survey were conducted on August 23rd and 26th, 2013, with 30 people. There were 20 academics (4 social workers, 7 mental health workers, 5 psychiatrists, 4 clinical psychologists), and 5 policymakers and 5 administrative staff. In additional 5 people from social welfare and 5 from clinical psychology fields were survey from september 9 to 12 by e-mail. The research found 4 priorities. They include, suicide attempt management, building up public infrastructure for suicide prevention, support to bereaved families, and crisis management of high risk groups in society.

Acoustic Signal based Optimal Route Selection Problem: Performance Comparison of Multi-Attribute Decision Making methods

  • Borkar, Prashant;Sarode, M.V.;Malik, L. G.
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.10 no.2
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    • pp.647-669
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    • 2016
  • Multiple attribute for decision making including user preference will increase the complexity of route selection process. Various approaches have been proposed to solve the optimal route selection problem. In this paper, multi attribute decision making (MADM) algorithms such as Simple Additive Weighting (SAW), Weighted Product Method (WPM), Analytic Hierarchy Process (AHP) method and Total Order Preference by Similarity to the Ideal Solution (TOPSIS) methods have been proposed for acoustic signature based optimal route selection to facilitate user with better quality of service. The traffic density state conditions (very low, low, below medium, medium, above medium, high and very high) on the road segment is the occurrence and mixture weightings of traffic noise signals (Tyre, Engine, Air Turbulence, Exhaust, and Honks etc) is considered as one of the attribute in decision making process. The short-term spectral envelope features of the cumulative acoustic signals are extracted using Mel-Frequency Cepstral Coefficients (MFCC) and Adaptive Neuro-Fuzzy Classifier (ANFC) is used to model seven traffic density states. Simple point method and AHP has been used for calculation of weights of decision parameters. Numerical results show that WPM, AHP and TOPSIS provide similar performance.

Depvlopment of the Evaluation Model of Location Suitability for Protected Horticulture by AHP Method (AHP기법을 이용한 시설원예의 적지평가모델 개발)

  • 황한철;김정식
    • Proceedings of the Korean Society of Rural Planning Conference
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    • 1998.10a
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    • pp.9-11
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    • 1998
  • It is necessary to evaluate the location suitability of protected horticulture facilities to guide and/or plan new protected horticulture facilities in rural areas.0 this study, as one of methodological approaches for objective and systematic evaluation for location suitability of protected horticulture, the evaluating model for location suitability of protected horticulture was formulated using AHP (Analytic Hierarchy Process) as the base technique. The evaluation model was made in three different selected regions; suburban, plain, and mountainous. The results showed that there were significant differences in evaluation model of location suitability for':ed horticulture among the three regions.

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정보통신표준화 전략계획수립을 위한 방법론연구-표준화대상의 우선순위 결정을 중심으로-

  • 구경철;박기식;송기평;임채연
    • Proceedings of the Korean Operations and Management Science Society Conference
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    • 1995.04a
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    • pp.847-864
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    • 1995
  • In this paper we present an integrated methodology for strategic planning in telecommunications standardization. Especially this paper focuses on the method of setting priorities for telecommunications SWAs(Standardization Work Areas) and related SWls(Standardization Work Items). To make a strategic plan for telecommunications standardization in which usually includes prioritization, resource allocation, standardization schedule for each SWA is based on prioritization of SWAs. Our methodology integrated various existing methods including the Analytic Hierarchy Process(AHP) and a modified Delphi technique. Recently, rapid technology evolution in telecommunications fields increases the necessity of developing more and more new standards. Also increased complexity of those technologies makes standards more complicated, more specified and more thick than the past ones. As a result, the number of SWAs and SWIs are being increased constantly. Furthermore, rapid telecommunication environment changes such as deregulation, liberalization, privatization, regionalization, and globalization surrounding standardization bring about new challenges and opportunities. Due to all these trends, strategic planning for telecommunications standardization grows more and more important. To cope with these challenges and also to make the more efficient use of the limited standardization resources including time, financial, human resources, we suggest more logical and rational approach that will be a backbone of strategic plan for telecommunications standardization. The telecommunications standardization planning process involves a MCDM(Multi-Criteria Decision Making) process. The Analytic Hierarchy Process(AHP) is a kind of MCDM approaches. Our method is based on a combination of a modified Delphi technique and an application of AHP(Liberator's spreadsheet model). Analyzed data from Delphi technique is used as inputs to ABP. In addition, we also focus on the technique how to combine group judgments and to handle a large number of comparisons. We present analyzed results including Pilot and Full Scale Survey according to the proposed process. The result of this study will be useful input for telecommunications standardization policy making and practical implementation.

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Quantifying the Process of Patent Right Quality Evaluation : Combined Application of AHP, Text Mining and Regression Analysis (특허권리성의 정량적 평가방법에 대한 연구 : AHP, 텍스트 마이닝, 회귀분석의 활용)

  • Yoon, Janghyeok;Song, Jaeguk;Ryu, Tae-Kyu
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.2
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    • pp.17-30
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    • 2015
  • Technology-oriented national R&D programs produce intellectual property as their final result. Patents, as typical industrial intellectual property, are therefore considered an important factor when evaluating the outcome of R&D programs. Among the main components of patent evaluation, in particular, the patent right quality is a key component constituting patent value, together with marketability and usability. Current approaches for patent right quality evaluation rely mostly on intrinsic knowledge of patent attorneys, and the recent rapid increase of national R&D patents is making expert-based evaluation costly and time-consuming. Therefore, this study defines a hierarchy of patent right quality and then proposes how to quantify the evaluation process of patent right quality by combining text mining and regression analysis. This study will contribute to understanding of the systemic view of the patent right quality evaluation, as well as be an efficient aid for evaluating patents in R&D program assessment processes.

A Study on Government Support for Logistics Security (물류보안 인증을 위한 정부지원 방안 연구)

  • Lee, DonHee
    • Journal of Korea Society of Industrial Information Systems
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    • v.21 no.6
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    • pp.109-123
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    • 2016
  • This study investigates the importance of government's support for logistics security assurance through certification programs. First, the study analyzed priorities among the requirements of logistics firms through Analytic Hierarchy Process(AHP) and Quality Function Deployment(QFD) approaches. For this process we invited 21 logistics experts to assess the relationships between logistic firms' requirements and government policies regarding logistics security using the house of quality, a set of matrices of QFD. The results of this phase of the study revealed the priorities of logistics firms' goals regarding the diffusion of the government security certification program as follows: integrated logistics security systems(40.3%), strengthening government support systems(32.4%), and operational effectiveness of logistics security certification(27.2%). Second, a relative weights applied QFD method based on AHP was applied to determined the expected outcome of the logistics security certification program. The results indicated as follows: productivity improvement(28.4%), improved level of service(26.7%), logistics cost reduction(21.6%), advanced information systems(19.7%), and improved environmental protection(3.6%). The results of this study provide new insights concerning logistics firms' requirements for supply chain security and the importance of government's support policies through logistics security certification programs.

A qualitative study for barrier factors of Korean venture firms' internationalization using Analytic Hierarchy Process (AHP를 이용한 한국벤처기업의 국제화 장애요인에 관한 질적 연구)

  • Yoo, Sung-Joon;Kim, Hag-Min
    • Korea Trade Review
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    • v.43 no.1
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    • pp.199-221
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    • 2018
  • The internationalization of venture firms is of importance resulting from the increased opportunities as well as the entry barriers faced in this process. This study is to investigate barrier factors affecting Korean venture firms' internationalization. Among these factors, we measured relative weights using Analytic Hierarchy Process (AHP). Literatures regarding global firm's internationalization was reviewed, and barriers were classified environment, corporate and CEO barriers. Multiple variables were used in order to measure their relative significance. We surveyed executives of venture firms comprising two groups: first, 15 global venture firms, and secondly, gradually internationalizing firms. The two groups show contradictory results as environment barriers are the primary for born-global ventures and corporate barriers are the primary for gradually internationalizing ventures. Concerning corporate barriers, the lack of marketing capability is the highest barrier for both groups. The CEO barrier is the lowest for both groups. Regarding corporate barriers, gradually internationalizing ventures considers the risk of business as highest, whereas born-global ventures features the lack of R&D capacity as highest Results of this paper imply that firms should consider priority and sequential approaches in facing environment, corporate and CEO barriers.

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