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What is AHP?
Analytic Hierarchy Process (AHP) is one of Multi Criteria decision making method that was originally developed by Prof. Thomas L. Saaty. In short, it is a method to derive ratio scales from paired comparisons. The input can be obtained from actual measurement such as price, weight etc., or from subjective opinion such as satisfaction feelings and preference. AHP allow some small inconsistency in judgment because human is not always consistent. The ratio scales are derived from the principal Eigen vectors and the consistency index is derived from the principal Eigen value.
Don't worry if you don't understand yet about all of those terminologies above because the purpose of this tutorial is to explain that in a very simple way. You just need to read on and at the end you will understand. I also provide MS Excel file (yes you can do AHP with spreadsheet) as companion of this tutorial. Click the topics below is you want to jump to some topics, or else just click here to continue the tutorial.
Pair-wise Comparison (What is pair-wise comparison?)
Making Comparison Matrix (How to make reciprocal matrix?)
Priority Vectors (How to compute Eigen Value and Eigen vector?)
Consistency Index and Consistency Ratio (What is the meaning of consistent?)
Illustrative example (how to compute in a full hierarchy?)
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Preferable reference for this tutorial is
Teknomo, Kardi. (2006) Analytic Hierarchy Process (AHP) Tutorial .
http://people.revoledu.com/kardi/tutorial/AHP/