Analytic Hierarchy Process (AHP) Tutorial

Analytic Hierarchy Process (AHP) Tutorial 1 This tutorial presents a (fabricated) working example to reinforce an understanding of the AHP prioritization technique. Situation Description: We are analysts at Blodger’s Communications. We are planning our next release. We have planned releases every four to six months. Due to this relatively short delivery time in which we must fit the planning; detailed requirements specification, analysis and design; programming; and thorough testing (including full regression testing), the scope of our release must be constrained. As well, Blodger’s has fixed the systems budget which further necessitates the need to choose implementation items wisely. The team responsible for product introduction and packaging services at Blodger’s cannot agree on what to include in the release. This team consists of the Vice President (VP) of Sales and Marketing, the VP of Customer Care, the VP of Billing and Invoicing, the VP of Provisioning and Equipment Distribution, the

VP of Finance, and the VP of Information Systems. At a meeting, one of our Senior Systems Analyst s (a wise graduate from the University of Toronto who has been invited because of their great ability) proposes the application of the Analytical Hierarchy Process (AHP) to identify what will be included in the release and what will be excluded. Here are the items to be considered for the release: 1. The Customer Care group has proposed that a communication-tracking mechanism be put in place. This would capture a record of all advice and quotations made to existing and potential customers. The purpose of this is to ensure that the store salespeople are aware of what the customers have been told in order to provide consistent service. As well, sales people are often befuddled by claims that customers make about phone conversations. This would help them to understand what the customer is talking about. 2. Billing and Invoicing want to publish detailed bills online and allow customer payment through credit card or pay-pal accounts. They want to add a discount for customers who choose to route their billing through the internet and further discount for those who pre-authorize bill payment. 3....

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