Multiple criteria decision support in organizational and management chosen problems solving

Abstract

This article presents an introduction to multicriteria decision making using two decision tools: the Analytic Hierarchy Process (AHP) and its generalization to dependence and feedback – the Analytic Network Process (ANP). The discussion involves theoretical aspects of these methods and some examples of their applications, (e.g. the first application of the ANP, in improving of food quality products, in Poland), in organizational and management problems solving. AHP and ANP introduced by Thomas L. Saaty from the University in Pittsburgh, USA. The Analytic Hierarchy Process has been one of the fastest developing mathematical methods over the recent years used for solving multi-criteria decision problems. The AHP is a general theory of measurement based on some mathematical and psychological principles. In that method a hierarchic decision scheme is constructed, by the breaking the problem into decision elements: goal, criteria, subcriteria, sub-subcriteria (…) and decision alternatives. The goal is on the top of hierarchy, whereas alternatives create the lowest level of hierarchy. The importance of every decision element is established, through the pair-wise comparison of elements on each level of the hierarchic structure, with regard to elements on the level above. To do the comparisons it is using the Saaty’s fundamental scale for paired comparisons for the analysis of both quantitative and qualitative variables. The Analytic Network Process (ANP) is a new theory that extends the Analytic Hierarchy Process (AHP). The basic structures are networks, which allow interactions and feedback within the clusters and between the clusters. So, it can be applied for solving more sophisticated decision problems. Authors’ intention was to showing utility of these methods, which can be successfully applied in the solution of any multicriteria enterprise.multiple criteria decision making methods, Analytic Hierarchy Process (AHP), Analytic Network Process (ANP)