W12_OAN_Car Selection using AHP

  1. Problem Definition

In this week blog posting, Author would like analyze choosing a car, using Analytic Hierarchy Process.

  1. Development of Feasible Alternatives

There are 2 alternatives car to choose, using 5 criteria which are Safety, Design, After Sales Service, Fuel Consumption, and Performance. Price will be set aside until the benefits of the alternatives are evaluated.

  1. Car A: Rp. 380 Milion
  2. Car B: Rp. 410 Milion
  3. Car C: Rp. 360 Milion
  4. Car D: Rp. 390 Milion

 

  1. Possible Solution

The information above is arranged in a hierarchical tree as below:

Figure 1: Hierarchical tree

  1. Selection Criteria

Table 1 will be the relative score:

Table 1: Relative Score

Car with the highest benefit – Cost Ratio will be selected.

  1. Analysis and Comparison of the Alternatives

Based on table 2, the relative score will be:

Table 2: Score – for alternative solution

Table 3: Average Value

Table 4: Weighted Matrix Comparison

Table 5: Consistency Vector

Table 6: CI Table

For Matrix 5 is 1.12.

We do same steps for each criteria.

Table 7: Rank based on Criteria

The alternative ranking is the product between alternative ranking matrix and criteria ranking.

Table 8: Alternative vs Criteria Matrix

  1. Selection and Preferred Alternatives

After alternative ranking has been defined, we have to compare between benefits and costs (price) using benefit – cost ratio.

Table 9: Cost Normalized

Table 10: Benefit – Cost Ratio

Based on Benefit – Cost Ratio, Car B has the highest ratio. Therefore, Car B will be Author choice.

  1. Performance Monitoring and the Post Evaluation of Result

In order to have more accurate result, pairwise comparison matrix can be done by surveying the experts or anyone who has good understanding of the problems.

Refrences

  1. Using AHP in Decision Making in Engineering Applications : Some Challenge
    Retrived from http://bit.csc.lsu.edu/trianta/Journal_PAPERS1/AHPapls1.pdf
  2. AHP Tutorial.
    Retrieved from https://pdfs.semanticscholar.org/7e27/b5a124c2e6829e1ff0d3e1279c2dbc9ebe2a.pdf
  3. W5_WW_Analytical Hierarchy Process
    Retrieved from https://garudaaace2015.wordpress.com/2015/03/28/w5_ww_-analytical-hierarchy-process-2/

 

 

1 thought on “W12_OAN_Car Selection using AHP”

  1. Another excellent posting Pak Nunug!!! I am really pleased to see you applying the tools and techniques to real world problems we face in our day to day working and personal lives.

    It just doesn’t get any better than this. I only wish your commitment and leadership by example would be picked up by others on your team?

    Keep up the really impressive work and you will have no problems with your AACE/GPC certification exams.

    BR,
    Dr. PDG back home in Jakarta

     

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