Basic Concepts of Analytical Hierarchy Process (AHP)
In a decision-making process, decision makers are often faced with various problems that come from the diversity criteria. As a practical example, the Local Government (LG) often face difficulties in determining the priority in decision making processes and policies in the area. Related dengal it, Analytic Hierarchy Process (AHP) can be used to resolve such issues. AHP was developed at the Wharton School of Business by Thomas Saaty in the 1970s when it Saaty a professor at the Wharton School of Business. In 1980, Saaty finally publish his work in his book entitled The Analytic Hierarchy Process.
In a decision-making process, decision makers are often faced with various problems that come from the diversity criteria. As a practical example, the Local Government (LG) often face difficulties in determining the priority in decision making processes and policies in the area. Related dengal it, Analytic Hierarchy Process (AHP) can be used to resolve such issues. AHP was developed at the Wharton School of Business by Thomas Saaty in the 1970s when it Saaty a professor at the Wharton School of Business. In 1980, Saaty finally publish his work in his book entitled The Analytic Hierarchy Process.
AHP then become a tool that is often used in decision making for AHP is based on the theory that reflect the way people think. In the process, AHP can be used as an alternative model to solve various problems, such as selecting a portfolio and forecasting. In daily life, people often face conditions to make decisions immediately. Generally we have considered several alternative solutions, with various arguments pro and con. AHP can facilitate the evaluation of the pros and cons in a rational way.
Thus, AHP can provide optimal solutions in a transparent manner through:
- analysis of quantitative and qualitative decision
- evaluation and representation of simple solutions through a model hierarchy
- logical argument
- testing the quality of decision
- it takes a relatively short time.
In principle, the AHP method is fragmenting a situation that is complex, unstructured, into sections in a more structured, starting from
goals to objectives and then to sub-objectives
then an alternative action. Decision makers then make a simple comparison of the hierarchy to take priority entire existing alternatives
goals to objectives and then to sub-objectives
then an alternative action. Decision makers then make a simple comparison of the hierarchy to take priority entire existing alternatives
In detail, there are three basic principles AHP, namely (Saaty, 1994):
1. Decomposition
Once the problem is defined, it is necessary to decomposition, which breaks down the whole issue into its elements. If you want to get accurate results, the solution to the elements made it impossible to do further troubleshooting. Solving it will produce some degree of a problem. Therefore, the analysis process is called Hierarchy.
2. Comparative Judgment
This principle makes judgments about the relative importance of the two elements in particular suatutingkat relating to the level above it. This assessment merupakaninti of AHP because it affects the priority elements. Penilaianini results looked better when presented in the form of pairwise comparison matrices.
3. Synthesis of Priority
Of each pairwise comparison matrix can be determined the value of eigenvector to get priority area. Therefore, there is a pairwise comparison matrix at any level, then global priority can be obtained by synthesis in the priority areas. Synthesizes different procedures according to hierarchy. Ordering the elements according to the relative importance through the synthesis procedure is called priority setting.
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