What is the Analytical Hierarchy Process (AHP) in Operation Management?

AHP was developed by Mr. Thomas Saaty as a decision making tool based on mathematical and psychological applications. AHP is an effective way to deal with qualitative and quantitative decision areas of operations management. The most addressed decision themes are product, process design and managing the supply chain. This could be used for product design, best transportation solution, lay out of facilities, fore casting, supplier selection and other areas of operation, applied in many critical problem solving.

AHP standard process as follows :

Define the problem

Broaden the objectives of the problem or consider all factors, objectives, and its outcome

Identify the criteria that influence the behavior

Structure the problem in a hierarchical levels constituting goal, criteria, sub-criteria, and alternatives.