Determine the priorities for the three cities.

Determine the priorities for the three cities.

Problem 1 – An organization was investigating relocating its corporate headquarters to one of the three possible cities. The following pairwise comparison matrix shows the president’s judgments regarding the desirability for the three cities.

  New York Dallas Miami
New York 1 5 7
Dallas 1/5 1 3
Miami 1/7 1/3 1

A. Determine the priorities for the three cities.

B. Is the president consistent in terms of the judgments provided? Explain.

Problem 2 – Asked to compare three soft drinks with respect to flavor, an individual stated that:

A is moderately more preferable than B

A is equally to moderately more preferable than C

B is strongly more preferable than C

A. Setup the pairwise comparison matrix for this problem

B. Determine the priorities for the soft drinks with respect to the flavor criteria

C. Are the individual’s judgments consistent? Explain.

Problem 3 – Like many high school seniors, Anne has several universities to consider when making her final college choice.  To assist in her decision, she has decided to use AHP to develop a ranking for school R, school P, and school M.  The schools will be evaluated on five criteria, and Anne’s pairwise comparison matrix for the criteria is shown below.

Distance

Program

Size

Campus Climate

Cost

Distance

1

1/4

2

3

4

Program

4

1

4

5

6

Size

1/2

1/4

1

3

3

Climate

1/3

1/5

1/3

1

2

Cost

1/4

1/6

1/3

1/2

1

The universities’ pairwise comparisons on the criteria are shown below.

Distance

R

P

M

R

1

2

3

P

1/2

1

3/2

M

1/3

2/3

1

 

Programs

R

P

M

R

1

1/2

1

P

2

1

2

M

1

1/2

1

 

Size

R

P

M

R

1

4

2

P

1/4

1

1/2

M

1/2

2

1

 

Climate

R

P

M

R

1

1

3

P

1

1

3

M

1/3

1/3

1

 

Cost

R

P

M

R

1

1/5

1

P

5

1

5

M

1

1/5

1

Using the AHP spreadsheet or AHP Online Program, answer the following questions.

a. What is the overall ranking of the five criteria? Show necessary steps and/or screenshots.

b. What is the overall ranking of the three universities?

Question 4 – Provide an example where you would like to use the AHP method? Create a flowchart to show decision options and alternatives.

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