Reference no: EM132996959

Assignment - Multi-Criteria Decision Making - Applying the AHP

This assignment is intended to assist teams in selecting "the best" project from a set of identified alternative projects for the Global Business Project. It is intended as a rehearsal exercise to help you decide if you would like to use this approach for the actual project selection. The two phases listed below are intended to help keep the analysis as objective as possible but both phases are required to be completed for the assignment.

Phase 1

Your team is required to agree on a set of criteria to be used in evaluating alternatives for the Global Business Project. A minimum of three criteria are required but there should be sub criteria, there is no upper limit on the number of criteria. A minimum of 7 criteria and sub criteria (combined) is expected. For each criterion and/or sub-criterion identified you must:
a. Provide written description including why it is relevant,
b. Indicate whether it is qualitative or quantitative. You should have a mix of qualitative and quantitative criteria,
c. Describe how it will be measured. Saaty's scale should be used for qualitative criteria, but it is up to you to define appropriate measues for the quantitative criteria.

Once you have identified a set of criteria, you are to assign criteria weights using the pairwise comparisons methodology presented as part of the Analytical Hierarchy Process (AHP) in class. As a team, you can decide if this is done individually and then averaged or if you work towards a group consensus for each comparison. The actual matrix algebra can be done by hand, in Microsoft excel or using any software you deem appropriate. You must also calculate the consistency ratio for the matrix you create (see Chapter 7 of the textbook and the lightboard tutorial "Calculating the Consistency Ratio" in Module 7 on Canvas). If the ratio is greater than 0.10, you will have to make adjustments.

Phase 2

Four project descriptions have been provided with the assignment. You should not review these projects until you have completed Phase 1.

Use pairwise comparisons to rate each of the four projects against the criteria you created during phase 1. This may require a considerable number of assumption, make sure to state these in your report. You are required to calculate the overall weights for each of the four alternatives. You are required to calculate the consistency ration for each matrix. Again, if you do not have enough information simply make and state your assumptions.

Deliverable:

1. A written submission including the details asked for above including (parts a, b, c in phase 1) and a description of how your team decided to conduct the pairwise comparisons.

2. An appendix showing the details regarding how the criteria weights were calculated and the consistency ratio calculation.

3. A list from highest to lowest weighted criteria.

4. A list from highest to lowest of the final weights for each of the four projects.

5. An appendix showing the details for how each project weight was calculated including consistency ratios for all qualitative pairwise comparison matrices. Note that when using quantitative measures in the pairwise matricies they results are always consistent and it is not necessary to calculate the consistency ratio.

Attachment:- Multi-Criteria Decision Making.rar