Analytical Hierarchy Process (AHP)+Multi-objective analysis or Essay

Analytical Hierarchy Process (AHP)+Multi-objective analysis or indicators - Essay Example Therefore it is a key factor contributing to project success. Nevertheless, procurement strategy selection decisions have been mostly judgmental, and hence subject to biases of the decision-maker. In this respect, the need to have a more objective and systematic selection model is self-evident. Developing a model for procurement selection is therefore of strategic importance and several leading research works have been reported (Masterman and Gameson, 84; Skitmore and Marsden, 121; Love et al., 221). This paper reports a study conducted in Hong Kong on the development of a procurement selection model based on multi-attribute utility technology (MAUT). The robustness of the model is enhanced with the use of the analytical hierarchy process (AHP) to determine the importance weightings for the selection criteria. The proposed method seeks to improve the objectivity of the procurement selection process by utilizing the expertise of industrial experts to determine the utility factors. The analytical hierarchy process is used also to determine the importance weightings of the selection criteria. When construction clients face the problem of selecting a procurement method for a project, the clients’ previous experience plays an influential role. As well as the degree of subjectivity, the decision is complicated by the multitude of decision criteria and options available. The nature of the problem fits nicely with multi-attribute utility technology (Edwards, 3; Green, 1992). MAUT is a methodology that can be used as a tool for measuring objectivity in an otherwise subjective area of management (Fellows et al., 27). MAUT is considered to be appropriate as it enables the integration of both the effects of the priority rating and the utilities derived from the respective procurement options. The approach involves first assigning a rating to each of the selection criteria. The ratings are then applied to the utilities derived from a particular procurement method against