AHP Model
for “Golden
Moon Ltd”
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Presented by
Story Mery Gharami (ID: 1259146)
Waliul Islam (ID:1284203)
Abdullah Junaid (ID: 1279564)
Samapon Barua (1272363)
The analytic hierarchy process (AHP) is a structured
technique for organizing and analyzing complex
decisions, based on mathematics and psychology.
Introduction
It was developed by Thomas L. Saaty in the 1970s
who partnered with Ernest Forman to develop
Expert Choice in 1983 and has been extensively
studied and refined since then.
Our chosen organization is “Golden Moon Ltd.”
Which is a local stationary store brand in Alberta,
Canada and it has a chain of stores almost all over in
Alberta.
For better decision-making purpose, we have used
Multicriteria Scoring Model instead of single
criterion.
AHP Model for “Golden Moon Ltd”
Level- 1:
Goal
Level-2:
Criteria
Level-3:
Alternati
ves
Buying stationary and fancy products
Customer
Service
Wish (USA)
Shipping Cost
Ali Express (China)
Shipment Duration
Joom ( China)
Product’s Quality
Shein (Canada)
Inside Analysis
Company’s Name
& Origin
Wish (US)
Ali Express (China)
Joom (China)
Shein(China)
Shipping
Cost
$1000
$2000
$2500
$2700
Shipment
Duration
30 days
30 days
35 days
45 days
Customer
Service Level
High
High
Moderate
Moderate
Product
Quality
Good
Very Good
Good
Good
Scale for
pairwise
comparison in
AHP
AHP Analysis for Shipping Cost
Here, Wish is
strongly preferred
than Joom and
Shein as well as
moderately
to
strongly preferred
than Ali Express.
Then Ali Express
is
strongly
preferred
than
Joom and Shein
according to the
Shipping cost &
duration chart.
Here, the consistency ratio is about 0.154 which is greater than 0.10. And we know that, if CR > 0.10, serious
inconsistencies might exist and AHP might not yield meaningful results. So, The Golden Moon is in a critical
situation, if they are going to decide based on the shipping cost comparisons.
AHP Analysis for Shipment Duration
Here, Wish and
Ali Express have
same duration 30
days.
But
shipment cost is
lower for Wish.
Wish is strongly
preferable than
Joom and Shein.
Ali Express is also
strongly
preferable than
Joom and Shein.
If CR ≤ 0.10, the degree of consistency in the pairwise comparison matrix is satisfactory. In this case, the
pairwise comparison matrix for the Shipment duration criterion is reasonably consistent.
AHP Analysis for Customers Service Level
Here,
the
preference
among Wish &
Ali Express is
equal and the
preference
among Joom
and Shein is
same.
Both
Wish and Ali
Express have
very
strong
preference
over both Joom
and Shein.
As, CR is 0.00025 ≤ 0.10, , the pairwise comparison matrix for this criterion is reasonably consistent. But,
the Golden Moon can’t take the final decision on basis of the customer service level because two of the
selected companies have the same avg. weight.
AHP Analysis for Product Quality Criterion
Here,
Ali
Express
has
the strongest
preference
from
all.
Because, the
product’s
quality is very
high according
to the chart of
product’s
quality
and
customers
service level.
As, CR is 0.053 ≤ 0.10, the pairwise comparison matrix for this criterion is reasonably consistent.
AHP Analysis for Criterion Weights
Here,
shipping cost
has the
highest
preference
over CSL and
PQ. But PQ
has the
highest
preference
over the
shipping time.
Here, the CR is about 0.26 which is greater than 0.10. And we know that, if CR > 0.10, serious
inconsistencies might exist and AHP might not yield meaningful results. So, the pairwise comparison matrix
for this criterion is not consistent. So, The Golden Moon is in a critical situation for decision making.
The Final AHP Analysis
According to this portion, we can see that Wish has highest weighted average. So, the golden moon
should make an agreement with them and that’s the best alternative for them as well.
Thank you