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Halting decisions for gas pipeline construction projects using AHP: a case study

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  • Tamer F. Abdelmaguid

    (Cairo University)

  • Waleed Elrashidy

    (Cairo University)

Abstract

This paper considers a decision making problem encountered by a natural gas pipeline construction company having a set of ongoing projects and facing unpredictable risks that can result in large deviations from planned schedules. This situation forces the company to consider the decision of halting one or more projects to avoid future losses and to allow for possible reallocation of some of their resources to other ongoing projects. This decision making problem involves different factors and criteria that need to be combined in an organized structure that exploits assessments of experts managing such projects. The analytic hierarchy process (AHP) is found to be suitable for guiding decisions in this problem. A case study for a major natural gas pipeline construction company in Egypt is presented, where three ongoing projects are considered. The proposed AHP structure, along with collected pairwise comparison scores and calculated priorities, suggests halting one project. Sensitivity analysis is conducted to investigate the effect of changes in the pairwise comparison scores assigned to the main criteria on the final decision. The results and analysis provide some insights regarding the application of the AHP and the relative importance of the factors affecting decisions.

Suggested Citation

  • Tamer F. Abdelmaguid & Waleed Elrashidy, 2019. "Halting decisions for gas pipeline construction projects using AHP: a case study," Operational Research, Springer, vol. 19(1), pages 179-199, March.
    • Handle: RePEc:spr:operea:v:19:y:2019:i:1:d:10.1007_s12351-016-0277-2
    DOI: 10.1007/s12351-016-0277-2
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    References listed on IDEAS

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    1. Thomas L. Saaty & Luis G. Vargas, 2012. "The Seven Pillars of the Analytic Hierarchy Process," International Series in Operations Research & Management Science, in: Models, Methods, Concepts & Applications of the Analytic Hierarchy Process, edition 2, chapter 0, pages 23-40, Springer.
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    3. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    4. V.M. Rao Tummala & Hong Ling, 1998. "A Note on the Computation of the Mean Random Consistency Index of the Analytic Hierarchy Process (Ahp)," Theory and Decision, Springer, vol. 44(3), pages 221-230, June.
    5. Forman, Ernest & Peniwati, Kirti, 1998. "Aggregating individual judgments and priorities with the analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 108(1), pages 165-169, July.
    6. Dey, Prasanta Kumar, 2006. "Integrated project evaluation and selection using multiple-attribute decision-making technique," International Journal of Production Economics, Elsevier, vol. 103(1), pages 90-103, September.
    7. Thomas L. Saaty & Luis G. Vargas, 2012. "Models, Methods, Concepts & Applications of the Analytic Hierarchy Process," International Series in Operations Research and Management Science, Springer, edition 2, number 978-1-4614-3597-6, July-Dece.
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    Cited by:

    1. Amaury Caruzzo & Cintia Maria Rodrigues Blanco & Paul Joe, 2020. "Developing a multi-attribute decision aid model for selection of a weather radar supplier," Environment Systems and Decisions, Springer, vol. 40(3), pages 371-384, September.

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