Date of Award

9-1992

Document Type

Thesis

Degree Name

Master of Science

First Advisor

David S. Christensen, PhD

Second Advisor

Wendell P. Simpson III, PhD

Abstract

This study examined the applicability of a multiple criterion decision making method, known as the Analytic Hierarchy Process (AHP) , to economic analysis decisions involving project selection. Through a survey of the literature and current practices, it was determined that qualitative criteria were not adequately represented in a typical economic analysis of projects. Several MCDM methods were examined and the AHP was found to be the most promising technique to rate projects on a ratio scale. Two types of project selection problems, those involving nonmutually exclusive alternatives and those involving mutually exclusive alternatives, were examined. It was determined that the AHP was applicable to both types of problems. An investigation of the literature regarding non-mutually exclusive Problems revealed that zero-one programming could be used to select a subset of the alternatives with the largest total AHP rating. With the help of a software package called Expert Choice, the AHP was then applied to a previously completed Air Force economic analysis (with mutually exclusive alternatives) and the results were evaluated. This study concluded with the recommendation that the Air Force formally adopt the AHP into its economic analysis procedures.

AFIT Designator

AFIT-GSM-LSY-92S-2

DTIC Accession Number

ADA258202

Comments

The authors' Vita pages are omitted.

Presented to the Faculty of the School of Systems and Logistics

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