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On modeling dynamic priorities in the analytic hierarchy process using compositional data analysis

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  • Raharjo, Hendry
  • Xie, Min
  • Brombacher, Aarnout C.

Abstract

In a rapidly changing environment, the priorities derived using the analytic hierarchy process (AHP) approach at one point in time might very likely change in the near future. Thus, in order to adapt to such ever-changing environment, it is of primary importance to be able to follow the change over time as to enable the system to respond differently and continuously over time of its operation. This paper proposes the use of a time-based compositional forecasting method, which is based on the idea of exponential smoothing, to deal with the AHP priority dynamics. The proposed method is particularly useful when there is a limited number of historical data, and might be considered to be more effective and time-efficient compared to that of multivariate time series method. It was also shown that the proposed method provides much greater adaptability in modeling the AHP priorities change over time compared to that of recently developed methods in compositional data research field. The shortcoming of Saaty's dynamic judgment approach and some limitations of the other existing methods will be discussed. Finally, to substantiate the validity of the proposed method and to give some practical insights, an illustrative case study is provided.

Suggested Citation

  • Raharjo, Hendry & Xie, Min & Brombacher, Aarnout C., 2009. "On modeling dynamic priorities in the analytic hierarchy process using compositional data analysis," European Journal of Operational Research, Elsevier, vol. 194(3), pages 834-846, May.
  • Handle: RePEc:eee:ejores:v:194:y:2009:i:3:p:834-846
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    References listed on IDEAS

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    1. Wang, Huiwen & Liu, Qiang & Mok, Henry M.K. & Fu, Linghui & Tse, Wai Man, 2007. "A hyperspherical transformation forecasting model for compositional data," European Journal of Operational Research, Elsevier, vol. 179(2), pages 459-468, June.
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    5. Saaty, Thomas L., 2006. "Rank from comparisons and from ratings in the analytic hierarchy/network processes," European Journal of Operational Research, Elsevier, vol. 168(2), pages 557-570, January.
    6. Vaidya, Omkarprasad S. & Kumar, Sushil, 2006. "Analytic hierarchy process: An overview of applications," European Journal of Operational Research, Elsevier, vol. 169(1), pages 1-29, February.
    7. Saaty, Thomas L., 1994. "Highlights and critical points in the theory and application of the Analytic Hierarchy Process," European Journal of Operational Research, Elsevier, vol. 74(3), pages 426-447, May.
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    Cited by:

    1. Giovanni Improta & Giuseppe Converso & Teresa Murino & Mosè Gallo & Antonietta Perrone & Maria Romano, 2019. "Analytic Hierarchy Process (AHP) in Dynamic Configuration as a Tool for Health Technology Assessment (HTA): The Case of Biosensing Optoelectronics in Oncology," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(05), pages 1533-1550, September.
    2. Kirytopoulos, Konstantinos & Voulgaridou, Dimitra & Platis, Agapios & Leopoulos, Vrassidas, 2011. "An effective Markov based approach for calculating the Limit Matrix in the analytic network process," European Journal of Operational Research, Elsevier, vol. 214(1), pages 85-90, October.

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