![]() ![]() They are depending on you as decision maker. Now you see that not only the criteria and alternatives are subjective, even the values are also subjective. Higher value indicates higher level of the factor or preferable values. The values can be any number with order (ordinal number) and you can even put different range for each factor. The values are number within any certain range say from 1 to 10 or -5 to 5. As we try to make our decision as rational as possible we need to quantify these subjective opinions into subjective Most of decisions makings are based on individual judgments. Some factors may be combined together and some criterion may be broken down into more detail criteria. Different people may add or subtract those lists. There is no correct or wrong criterion because it is subjective opinion. They neither cover all possible criteria nor all possible alternatives. Notice that the list of criteria and alternatives above are not exhausted list. The determination of criteria and alternatives are very subjective. Total cost (capital, maintenance, operational) Table 1: Example of Goal, Criteria and AlternativesĬar's trade mark (Honda, GM, Ford, Nissan etc.)ĭecide whether to buy or to rent a machine Table 1 below shows example of criteria and alternatives of several decision makings. Similarly, I use 'alternative' and 'choice' for the same meaning. In this tutorial, I will use the word 'factors' and 'criteria' interchangeably. On group decision making these criteria and alternatives are more obvious and must be determined first before we give some judgment score or evaluation values on them. On what to consider and we also have severalĬhoices that we should decide. In each of these decisions, deep in our mind we have several factors or We decide which school to take, which place to live, which clothes to use, which persons to be our best friends or to marry, which food to eat, which car to buy, and so on.ĭecision making is process to choose among alternatives based on multiple criteria. It provides a comprehensive and rational framework for structuring a decision problem, for representing and quantifying its elements, for relating those elements to overall goals, and for evaluating alternative solutions.In this section of tutorial, you will learn background materials with several terminologies such as criteria or factors, alternatives choice, evaluation score value and weight of importance level and how to transform different range of judgments into fair evaluation. Rather than prescribing a "correct" decision, these methods help the decision makers to find a solution that best suits their goal and their understanding of the problem. They have particular application in group decision making, and are used around the world in a wide variety of decision situations, in fields such as government, business, industry, healthcare, shipbuilding and education. ![]() These are structured techniques for organizing and analyzing complex decisions, based on mathematics and psychology. The Analytic Hierarchical Process (AHP) and the Analytic Network Process (ANP) are used to measure intangibles using human judgment.ĪHP/ANP are the most powerful synthesis methodologies for combining judgment and data to effectively rank options and predict outcomes. ![]()
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