AHP and Weighted Pugh ID24M1004
Krishnakumar P
Understanding Requirements & Paired Comparisons
We will structure the AHP hierarchy and perform pairwise comparisons to derive priority weights.
Objective:
Select the best pen for signing 5000 certificates over 5 years based on:
• Purchase cost
• Maintenance cost
• Cost of consumables
• Durability
• Appearance of written word
Structuring the AHP Hierarchy
Criteria & Sub-Criteria
Main Criteria Sub-Criteria
Cost Factors Purchase Cost
Maintenance Cost
Cost of Consumables
Quality Factors Durability
Appearance of Written Word
Paired Comparisons:
We perform pairwise comparisons among the main criteria and their sub-criteria.
Pairwise Comparison of Main Criteria
Criteria Cost Factors Quality Factors
Cost Factors 1 1/3
Quality Factors 3 1
Quality Factors are 3× more important than Cost Factors since the pen must write neatly for 5000
certificates.
Normalization & Priority Calculation
Normalize the Matrix
Criteria Cost Factors Quality Factors Sum
Cost Factors 1 / 1.33 = 0.25 (1/3) / 1.33 = 0.083 1.33
Quality Factors 3 / 4 = 0.75 1 / 4 = 0.75 4.00
Final Weights for Main Criteria
Criteria Priority Weight
Cost Factors 0.25 (25%)
Quality Factors 0.75 (75%)
Quality Factors dominate (75%) because writing must look neat and professional.
Pairwise Comparisons for Sub-Criteria
Cost Factors Comparison
Cost Factors Purchase Cost Maintenance Cost Cost of Consumables
Purchase Cost 1 3 5
Maintenance Cost 1/3 1 3
Consumables Cost 1/5 1/3 1
Purchase Cost is the most significant (because the initial investment matters more than small
maintenance costs).
Cost Factors Local Weight
Purchase Cost 0.6
Maintenance Cost 0.27
Consumables Cost 0.13
Final Weights (Cost Factors, 25% Total Weight):
• Purchase Cost → 0.6 × 0.25 = 0.15 (15%)
• Maintenance Cost → 0.27 × 0.25 = 0.07 (7%)
• Consumables Cost → 0.13 × 0.25 = 0.03 (3%)
Quality Factors Comparison
Quality Factors Durability Appearance
Durability 1 3
Appearance 1/3 1
Durability is 3× more important than appearance because the pen must last 5 years.
Quality Factors Local Weight
Durability 0.75
Appearance 0.25
Final Weights (Quality Factors, 75% Total Weight):
• Durability → 0.75 × 0.75 = 0.56 (56%)
• Appearance → 0.25 × 0.75 = 0.19 (19%)
Observing Consistency Indices
Compute λmax:
We compute:
λ max =0.333/0.25 + 1.50/0.75 = 1.33+2 = 2.33
CI = 2.33−2 / 2−12 = 0.33
Compute Consistency Ratio (CR)
CR = CI/RI = 0.33/0 = 0
consistency Ratio (CR < 0.1) confirms a valid decision-making process.
Weighted Pugh Matrix – Selecting the Best Concept
Now, we evaluate the three pen options:
1. Quill Pen (€5.00)
2. Ballpoint Pen (€0.50)
3. Fountain Pen (€55.00)
Weighted Scores Calculation
Ballpoint Pen
Criteria Quill Pen Fountain Pen
(Baseline = 0)
Purchase Cost (0.15) 0 -2 (€5.00) -3 (€55.00)
Maintenance Cost (0.07) 0 -2 (fragile) +2 (refillable)
Consumables Cost (0.03) 0 -1 (ink mess) -1 (cartridges)
Durability (0.56) 0 -2 (fragile) +3 (long-lasting)
Appearance (0.19) 0 +2 (elegant) +3 (best writing)
Final Scores
Total Score = ∑ (Weight × Score)
Concept Score
Ballpoint Pen (Baseline) 0
Quill Pen -0.42
Fountain Pen +3.75
The Fountain Pen is the best choice.
Conclusion
• The Fountain Pen (+3.75) is 3.75 points better than the Ballpoint Pen (0).
• The Quill Pen (-0.42) is worse than the Ballpoint Pen (0).
• Fountain Pen is 4.17 points better than the Quill Pen!
• Despite its high cost, the Fountain Pen is the best investment because of superior durability
and the most attractive writing.
Final Decision: To buy the Fountain Pen for signing 5000 certificates over 5 years.