INTRODUCTION

According to Operations Management 4th Edition by Russell and Taylor III, Analytic
Hierarchy Process (AHP) is a quantitative method for ranking decision alternatives and selection
the one given multiple criteria. In other words, AHP is designed to solve complex problems
involving multiple criteria. It is a process for developing a numerical score to rank each decision
alternative based on how well each alternative meets the decision maker’s criteria. An advantage
of the AHP is that it is designed to handle situations in which the subjective judgments of
individuals constitute an important part of the decision process.

The basic method of AHP are follows:

i. Breaking down a complex, unstructured situation into its component parts.

ii. Arranging these parts, or variables into a hierarchic order.
iii. Assigning numerical values to subjective judgments on the relative importance of each
variable.
iv. Synthesizing the judgments to determine which variables have the highest priority and
should be acted upon to influence the outcome of the situation.

The major steps of AHP are follows:

i. To develop a graphical representation of the problem in terms of the overall goal, the
criteria, and the decision alternatives. (i.e., the hierarchy of the problem)
ii. To specify his/her judgments about the relative importance of each criterion in terms of
its contribution to the achievement of the overall goal.
iii. To indicate a preference or priority for each decision alternative in terms of how it
contributes to each criterion.
iv. Given the information on relative importance and preferences, a mathematical process is
used to synthesize the information (including consistency checking) and provide a
priority ranking of all alternatives in terms of their overall preference.
PROBLEM

In our chosen problem, we want to make a selection on buying a new digital/compact camera.
We look through on multiple criteria that we have been considered on it. We also look on several
alternatives based on worldwide brand that supplies digital/compact cameras.

The table below shows the specifications of the digital/compact camera:

MEGAPIXELS SENSITIVITY OPTICAL ZOOM Wi-Fi

CANON 20.3 MP ISO 80 - ISO 1600 50X YES

NIKON 20.3 MP IS0 100 – ISO 3200 60X NO
SONY 20.4 MP IS0 80 – ISO 3200 50X NO

Objective

 To select a new digital/compact camera.

Criteria

i. Megapixels
ii. Sensitivity
iii. Optical zoom
iv. Wi-Fi

Alternatives

i. Canon (PowerShot SX540 HS)

ii. Nikon (COOLPIX B700)
iii. Sony (HX400V)
 SELECT A NEW
DIGITAL/COMPACT
CAMERA.

MEGAPIXELS SENSITIVITY OPTICAL ZOOM Wi-Fi

CANON CANON CANON CANON

NIKON NIKON NIKON NIKON

SONY SONY SONY SONY

Using Judgments to Determine the Ranking of the Criteria

1. Sensitivity is 3 times as important as Megapixels.

2. Megapixels is 4 times as important as Wi-Fi.
3. Sensitivity is 4 times as important as Optical zoom.
4. Sensitivity is 5 times as important as Wi-Fi.
5. Zoom is 2 times as important as Wi-Fi.

Using Pairwise Comparisons, the Relative Importance of One Criterion over Another Can Be
Expressed

Verbal Judgment of Preference Numerical Rating

Extremely preferred 5
Very strongly preferred 4
Strongly preferred 3
Moderately preferred 2
Equally preferred 1
 MEGAPIXELS SENSITIVITY OPTICAL WI-FI
ZOOM
MEGAPIXELS 1/1 1/3 1/1 4/1
SENSITIVITY 3/1 1/1 4/1 5/1
OPTICAL 1/1 1/4 1/1 2/1
ZOOM
WI-FI 1/4 1/5 1/2 1/1

In Matrix form:

1 / 1 1/ 3 1/1 4 / 1
3 / 1 1/1 4 /1 5 / 1

1 / 1 1/ 4 1/1 2 / 1
 
1 / 4 1/ 5 1/ 2 1 / 1

Convert the fractions into decimals:

1.0000 0.3333 1.0000 4.0000

3.0000 1.0000 4.0000 5.0000

1.0000 0.2500 1.0000 2.0000
 
0.2500 0.2000 0.5000 1.0000 

Step 1 : Square the matrix.

2
1.0000 0.3333 1.0000 4.0000  3.9999 1.7166 5.3332 11.6665 
3.0000 1.0000 4.0000 5.0000 11.2500 3.9999 13.5000 30.0000
 
1.0000 0.2500 1.0000 2.0000  3.2500 1.2333 4.0000 9.2500 
   
0.2500 0.2000 0.5000 1.0000   1.6000 0.6083 2.0500 4.0000 

Step 2 : Find the eigenvector.

 3.9999 1.7166 5.3332 11.6665   22.7153

11.2500 3.9999 13.5000 30.0000  58.7499

 3.2500 1.2333 4.0000 9.2500   17.7333
 
 1.6000 0.6083 2.0500 4.0000   8.2583

Sum of row total = 22.7153 + 58.7499 + 17.7333 + 8.2583 = 107.4568

Eigenvector = (Total each row / sum of row total)

 22.7153 
107.4568 
 58.7499  0.2114
  0.5467
107.4568    
 17.7333  0.1650
107.4568   
 8.2583  0.0769
 
107.4568 

Repeat step 1:
2
 3.9999 1.7166 5.3332 11.6665   71.3103 27.4066 89.7555 194.1609
11.2500 
3.9999 13.5000 30.0000 181.8728 70.2095 229.4972 496.1201
 
 3.2500 1.2333 4.0000 9.2500   54.6743 21.0720 68.9450 148.9151
   
 1.6000 0.6083 2.0500 4.0000   26.3057 10.1412 33.1452 71.8779 

Repeat step 2:

 71.3103 27.4066 89.7555 194.1609  382.6333

181.8728 70.2095 229.4972 496.1201  977.6996

 54.6743 21.0720 68.9450 148.9151  293.6064
 
 26.3057 10.1412 33.1452 71.8779   141.4700

Sum of row total = 382.6333 + 977.6996 + 293.6064 + 141.4700 = 1795.4093

Eigenvector = (Total each row / sum of row total)

 382.6333 
1795.4093 
 977.6996   0.2131
  0.5446
1795.4093    
 293.6064  0.1635
1795.4093   
 141.4700  0.0788
 
1795.4093 

Thus, the difference of the first eigenvector with the second eigenvector is:
 0.2114   0.2131  0.0017 
0.5467  0.5446  0.0021 
 -  =  
0.1650  0.1635  0.0015 
     
0.0769  0.0788   0.0019 

There is not much difference between the first eigenvector with the second eigenvector. The
computed eigenvector above, gives us the relative ranking of our criteria.

Eigenvector for each criteria:

i. Megapixels = 0.2131 ~ The second most important criterion.

ii. Sensitivity = 0.5446 ~ The most important criterion.
iii. Optical zoom = 0.1635 ~ The third most important criterion.
iv. Wi-Fi = 0.0788 ~ The least important criterion.

Using Judgments to Determine the Ranking of the Megapixels

1. Nikon is equally to Canon.

2. Sony is 3 times better than Canon.
3. Sony is 2 times better than Nikon.

CANON NIKON SONY

CANON 1/1 1/1 1/3
NIKON 1/1 1/1 1/2
SONY 3/1 2/1 1/1

In matrix form:

1 / 1 1 / 1 1 / 3
1 / 1 1 / 1 1 / 2
 
3 / 1 2 / 1 1 / 1

Convert fractions into decimals:

1.0000 1.0000 0.3333

1.0000 1.0000 0.5000
 
3.0000 2.0000 1.0000 
Step 1 : Square the matrix
2
1.0000 1.0000 0.3333 2.9999 2.6666 1.1666 
1.0000 1.0000 0.5000  3.5000 3.0000 1.3333 
   
3.0000 2.0000 1.0000  8.0000 7.0000 2.9999

Step 2 : Find the eigenvector

2.9999 2.6666 1.1666   6.8331

3.5000 3.0000 1.3333   7.8333
 
8.0000 7.0000 2.9999  17.9999

Sum of row total = 6.8331 + 7.8333 + 17.9999 = 32.6663

Eigenvector = (Total each row / sum of row total)

 6.8331 
 32.6663  0.2091
 7.8333   
 
  0.2398
 32.6663   
17.9999    0.5510 
 32.6663 

Repeat Step 1:
2
2.9999 2.6666 1.1666  27.6653 24.1655 10.5547 
3.5000 3.0000 1.3333    31.6661 27.6662 12.0828 
   
8.0000 7.0000 2.9999 72.4984 63.3321 27.6653

Repeat Step 2:

27.6653 24.1655 10.5547   62.3855

31.6661 27.6662 12.0828   71.4151
 
72.4984 63.3321 27.6653  163.4958

Sum of row total = 62.3855 + 71.4151 + 163.4958 = 297.2964

Eigenvector = (Total each row / sum of row total)

 62.3855 
 297.2964  0.2098
 71.4151   
 
  0.2402
 297.2964   
 163.4958   0.5499 
 297.2964 

Thus, the difference of the first eigenvector with the second eigenvector is:

 0.2091 0.2098  0.0007

0.2398  0.2402   0.0004
     
0.5510 0.5499  0.0011 

There is not much difference between the first eigenvector with the second eigenvector. The
computed eigenvector above, gives us the relative ranking of our Megapixels.

Eigenvector for each Megapixels:

i. Canon = 0.2098 ~ Good Megapixels.

ii. Nikon = 0.2402 ~ Better Megapixels.
iii. Sony = 0.5499 ~ The best Megapixels.

Using Judgments to Determine the Ranking of the Sensitivity

1. Nikon is 4 times better than Canon.

2. Sony is 2 times better than Canon.
3. Sony is 3 times better than Nikon.

CANON NIKON SONY

CANON 1/1 1/4 1/2
NIKON 4/1 1/1 1/3
SONY 2/1 3/1 1/1
In matrix form:

1 / 1 1 / 4 1 / 2
 4 / 1 1 / 1 1 / 3
 
2 / 1 3 / 1 1 / 1

Convert fractions into decimals:

1.0000 0.2500 0.5000

4.0000 1.0000 0.3333
 
2.0000 3.0000 1.0000 

Step 1 : Square the matrix

2
1.0000 0.2500 0.5000  3.0000 2.0000 1.0833 
4.0000 1.0000 0.3333   8.6666 2.9999 2.6666
   
2.0000 3.0000 1.0000  16.0000 6.5000 2.9999

Step 2 : Find the eigenvector

 3.0000 2.0000 1.0833   6.0833

 8.6666 2.9999 2.6666  14.3331
 
16.0000 6.5000 2.9999  25.4999

Sum of row total = 6.0833 + 14.3331 + 25.4999 = 45.9163

Eigenvector = (Total each row / sum of row total)

 6.0833 
 45.9163  0.1325
 14.3331   
   0.3122

 45.9163   
 25.4999   0.5554 
 45.9163 

Repeat Step 1:
2
 3.0000 2.0000 1.0833   43.6660 19.0413 11.8329 
 8.6666 2.9999 2.6666   94.6643 43.6655 25.3876
   
16.0000 6.5000 2.9999 152.3313 70.9987 43.6651
Repeat Step 2:

 43.6660 19.0413 11.8329   74.5402

 94.6643 43.6655 25.3876  163.7174
 
152.3313 70.9987 43.6651  266.9951

Sum of row total = 74.5402 + 163.7174 + 266.9951 = 505.2527

Eigenvector = (Total each row / sum of row total)

 74.5402 
 505.2527  0.1475
 163.7174   
 
  0.3240
 505.2527   
 266.9951    0.5284 
 505.2527 

Thus, the difference of the first eigenvector with the second eigenvector is:

0.1325 0.1475  0.0150

0.3122  0.3240   0.0118
     
0.5554 0.5284  0.0270 

There is not much difference between the first eigenvector with the second eigenvector. The
computed eigenvector above, gives us the relative ranking of our Sensitivity.

Eigenvector for each Sensitivity:

i. Canon = 0.1475 ~ Good Sensitivity.

ii. Nikon = 0.3240 ~ Better Sensitivity.
iii. Sony = 0.5284 ~ The best Sensitivity.
Using Judgments to Determine the Ranking of the Optical Zoom

1. Nikon is 3 times better than Canon.

2. Nikon is 2 times better than Sony.
3. Sony is equally to Canon.

CANON NIKON SONY

CANON 1/1 1/3 1/1
NIKON 3/1 1/1 4/1
SONY 1/1 1/4 1/1

In Matrix form:

1 / 1 1 / 3 1 / 1
3 / 1 1 / 1 4 / 1
 
1 / 1 1 / 2 1 / 1

Convert the fractions into decimals:

1.0000 0.3333 1.0000 

3.0000 1.0000 4.0000
 
1.0000 0.5000 1.0000 

Step 1 : Square the matrix.

 2.9999 1.1666 3.3332 

2
1.0000 0.3333 1.0000 
3.0000 1.0000 4.0000  10.0000 3.9999 11.0000
   
1.0000 0.5000 1.0000   3.5000 1.3333 4.0000 

Step 2 : Find the eigenvector.

 2.9999 1.1666 3.3332   7.4997 

10.0000 3.9999 11.0000 24.9999
   
 3.5000 1.3333 4.0000   8.8333 

Sum of row total = 7.4997 + 24.9999 + 8.8333 = 41.3329

Eigenvector = (Total each row / sum of row total)

 7.4997 
 41.3329 
 24.9999  0.1814
   0.6048
 41 .3329   
 8.8333    0.2137 
 41.3329 

Repeat step 1:

 32.3316 12.6101 36.1647 

2
 2.9999 1.1666 3.3332 
10.0000 3.9999 11.0000  108.4980 42.3315 121.3309
   
 3.5000 1.3333 4.0000   37.8327 14.7494 42.3325 

Repeat step 2:

 32.3316 12.6101 36.1647   81.1064 

108.4980 42.3315 121.3309  272.1604
   
 37.8327 14.7494 42.3325   94.9146 

Sum of row total = 81.1064 + 272.1604 + 94.9146 = 448.1814

Eigenvector = (Total each row / sum of row total)

 81.1064 
 448.1814 
 272.1604  0.1810
   0.6073
 448 .1814   
 94.9146    0.2118 
 448.1814 

Thus, the difference of the first eigenvector with the second eigenvector is:

0.1814  0.1810  0.0004 

0.6048 0.6073   0.0025
 -    
0.2137  0.2118  0.0019 

There is not much difference between the first eigenvector with the second eigenvector. The
computed eigenvector above, gives us the relative ranking of Optical Zoom.
Eigenvector for each Optical Zoom:

i. Canon = 0.1810 ~ Good Optical Zoom.

ii. Nikon = 0.6073 ~ The best Optical Zoom.
iii. Sony = 0.2118 ~ Better Optical Zoom.

Using Judgments to Determine the Ranking of the Wi-Fi

1. Canon is 4 times better than Nikon.

2. Canon is 3 times better than Sony.
3. Sony is equally to Nikon.

CANON NIKON SONY

CANON 1/1 4/1 3/1
NIKON 1/4 1/1 1/1
SONY 1/3 1/1 1/1

In Matrix form:

1 / 1 4 / 1 3 / 1
1 / 4 1 / 1 1 / 1
 
1 / 3 1 / 1 1 / 1

Convert the fractions into decimals:

1.0000 4.0000 3.0000

0.2500 1.0000 1.0000 
 
0.3333 1.0000 1.0000 

Step 1 : Square the matrix.

2.9999 11.0000 10.0000

2
1.0000 4.0000 3.0000
0.2500 1.0000 1.0000   0.8333 3.0000 2.7500 
   
0.3333 1.0000 1.0000  0.9166 3.3332 2.9999 
Step 2 : Find the eigenvector.

2.9999 11.0000 10.0000 23.9999

0.8333 3.0000 2.7500   6.5833 
   
0.9166 3.3332 2.9999   7.2497 

Sum of row total = 23.9999 + 6.5833 + 7.2497 = 37.8329

Eigenvector = (Total each row / sum of row total)

 23.9999 
 37.8328 
 6.5833  0.6344
   0.1740
 37.8329   
 7.2497    0.1916 
 37.8329 

Repeat step 1:

27.3317 99.3309 90.2480

2
2.9999 11.0000 10.0000
0.8333 3.0000 2.7500    7.5204 27.3326 2.8327 
   
0.9166 3.3332 2.9999   8.2770 30.0815 27.3317

Repeat step 2:

27.3317 99.3309 90.2480 216.9106

 7.5204 27.3326 2.8327    37.6857 
   
 8.2770 30.0815 27.3317  65.6902 

Sum of row total = 216.9106 + 37.6857 + 65.6902 = 320.2865

Eigenvector = (Total each row / sum of row total)

 216.9106 
 320.2865 
 37.6857  0.6772
   0.1177
 320.2865   
 65.6902   0.2051

 320.2865 
Thus, the difference of the first eigenvector with the second eigenvector is:

0.6344 0.6772   0.0428

0.1740 0.1177    0.0563 
 -    
0.1916  0.2051  0.0135

There is not much difference between the first eigenvector with the second eigenvector. The
computed eigenvector above, gives us the relative ranking of Wi-Fi.

Eigenvector for each Wi-Fi:

i. Canon = 0.6772 ~ The best Wi-Fi.

ii. Nikon = 0.1177 ~ Good Wi-Fi.
iii. Sony = 0.2051 ~ Better Wi-Fi.

THE TREE WITH ALL THE WEIGHTS

 SELECT A NEW
DIGITAL/COMPACT
CAMERA.
1.00

MEGAPIXELS SENSITIVITY OPTICAL ZOOM Wi-Fi

0.2131 0.5446 0.1635 0.0788

CANON CANON CANON CANON

0.2098 0.1475 0.1810 0.6772

NIKON NIKON NIKON NIKON

0.2402 0.3240 0.6073 0.1177

SONY SONY SONY SONY

0.5499 0.5284 0.2118 0.2051

The Solution

 0.2131
0.2098 0.1475 0.1810 0.6772   0.2080  CANON
0.2402 0.3240 0.6073 0.1177  0.5446  0.3362
  0.1635    NIKON
0.5499 0.5284 0.2118 0.2051   0.4557  SONY
 0.0788 

Based on the solution above, SONY is the highest ranked digital/compact camera.

Benefit to Cost Ratios:

COST RATIO COST BENEFIT TO COST

RATIO
CANON RM1499 0.2646 0.7861
NIKON RM2168 0.3826 0.8787
SONY RM1999 0.3528 1.2917
TOTAL RM5666 1.0000
Based on the table above, SONY is the winner with the highest benefit to cost ratio.

Conclusion

We conclude that the best digital/compact camera is from SONY based on the model that we
choose which is HX400V. Below are the specifications for SONY (HX400V) model;

i. Megapixels - 20.4 MP
ii. Sensitivity - IS0 80 – ISO 3200
iii. Optical zoom - 50X
iv. Wi-Fi - NO