FIGURE 1 HIERARCHY FOR THE CAR SELECTION PROBLEM

OVERALL GOAL: SELECT THE BEST CAR

CRITERIA: PRICE KPL COMFORT STYLE

MARUTI DX MARUTI DX WAGON R MATIZ SD

DECISION
MATIZ SD MATIZ SD MATIZ SD WAGON R
ALTERNATIVES:
WAGON R WAGON R MARUTI DX MARUTI DX
 Price KPL Comfort Style

Price 1 3 2 2
KPL 1/3 1
Comfort 4 1
Style 4 2 1
 Synthesization:
Sum each column
Price KPL Comfort Style
Price 1 3 2 2
KPL 1/3 1
Comfort 4 1
Style 4 2 1
Sum 2.333 12.000 5.250 3.750
Divide each element by the column total:

Price KPL Comfort Style

Price 0.429 0.250 0.381 0.533
KPL 0.143 0.083 0.048 0.067
Com. 0.214 0.333 0.190 0.133
Style 0.214 0.333 0.381 0.267
Average each row to determine the Priority of
each criteria:
Price KPL Comfort Style Priority
Price 0.429 0.250 0.381 0.533 0.398
KPL 0.143 0.083 0.048 0.067 0.085
Com. 0.214 0.333 0.190 0.133 0.218
Style 0.214 0.333 0.381 0.267 0.299
 AHP

CONSISTENCY Ratio
< 0.10
 Consistency Ratio (CR)
Step 1. Multiply each value in the first column of the pairwise
comparison matrix by the priority of the first item.
Continue this process for all columns. Sum the values
across the rows to obtain a vector of values (weighted
sum).
Step2. Divide the elements of the weighted sum vector by the
corresponding priority for each criteria.
Step3. Compute the average of these values (max)
Step4. Compute the Consistency Index CI= (max-n)/(n-1)
Step5. Compute the consistency ratio CR= CI/RI.
N= 3 4 5 6 7 8
RI= 0.58 0.90 1.12 1.24 1.32 1.41
 1.687
Price = 4.238
0.398
0.347
KPL = 4.082
0.085
0.907
Comfort = 4.161
0.218
1.274
Style = 4.261
0.299
 AHP
max=4.185
CI= (max-n)/(n-1)= (4.185-4)/(4-1)=.0616
CR=CI/RI
CR=0.068
(RI = 0.90 for n= 4)
The degree of consistency in the pairwise
comparisons is acceptable.
PAIRWISE COMPARISON SCALE FOR THE PREFERENCE OF
DECISION ALTERNATIVES USING AHP

Verbal Judgment Numerical Rating

Extremely preferred 9
8
Very strongly preferred 7
6
Strongly preferred 5
4
Moderately preferred 3
2
Equally preferred 1
 PAIRWISE COMPARISON MATRICES SHOWING
PREFERENCES FOR THE CARS USING EACH CRITERION

Price KPL
Wagon R Matiz Maruti Wagon R Matiz Maruti

Wagon R 1 1/3 Wagon R 1 1/6

Matiz 3 1 Matiz 4 1 1/3
Maruti DX 4 2 1 Maruti DX 6 3 1

Comfort Style
Wagon R Matiz Maruti Wagon R Matiz Maruti
Wagon R 1 2 8 Wagon R 1 1/3 4
Matiz 1 6 Matiz 3 1 7
Maruti DX 1/8 1/6 1 Maruti DX 1/7 1
PRIORITIES FOR EACH CAR USING EACH CRITERION

Criterion Price KPL Comfort Style

Wagon R 0.123 0.087 0.593 0.265
Matiz SD 0.320 0.274 0.341 0.656
Maruti DX 0.557 0.639 0.065 0.080
 Overall Priority Ranking:

Overall Priority of Wagon R:

0.398(0.123) + 0.085(0.087) + 0.218(0.593) + 0.299(0.265) = 0.265

Overall Priority of Matiz SD:

0.398(0.320) + 0.085(0.274) + 0.218(0.341) + 0.299(0.656) = 0.421

Overall Priority of Maruti DX:

0.398(0.557) + 0.085(0.639) + 0.218(0.065) + 0.299(0.080) = 0.314
OVERALL PRIORITY RANKING

Car Priority
Matiz SD 0.421
Maruti DX 0.314
Wagon R (VX) 0.265