Problem 3
Opaque Corp. is trying to evaluate five vendors using the AHP
ratings method. The three evaluation criteria are Cost, Quality, and Service.
The pairwise comparison data are summarized:
Criteria
with Respect to Goal
|
Cost |
Quality |
Service |
|
|
Cost |
1 |
2 |
3 |
|
Quality |
1/2 |
1 |
2 |
|
Service |
1/3 |
1/2 |
1 |
The pairwise
comparison matrices are as follows. For Cost:
|
Cost |
V1 |
V2 |
V3 |
V4 |
V5 |
|
V1 |
1 |
2 |
6 |
2 |
4 |
|
V2 |
1/2 |
1 |
7 |
1 |
2 |
|
V3 |
1/6 |
1/7 |
1 |
1/7 |
1/5 |
|
V4 |
1/2 |
1 |
7 |
1 |
2 |
|
V5 |
1/4 |
1/2 |
5 |
1/2 |
1 |
For Quality:
|
Quality |
V1 |
V2 |
V3 |
V4 |
V5 |
|
V1 |
1 |
1/7 |
1/6 |
1 |
1/7 |
|
V2 |
7 |
1 |
1/2 |
7 |
1 |
|
V3 |
6 |
2 |
1 |
6 |
2 |
|
V4 |
1 |
1/7 |
1/6 |
1 |
1/7 |
|
V5 |
7 |
1 |
1/2 |
7 |
1 |
For Service:
|
Service |
V1 |
V2 |
V3 |
V4 |
V5 |
|
V1 |
1 |
1/7 |
1/6 |
1 |
1/7 |
|
V2 |
7 |
1 |
1/2 |
7 |
1 |
|
V3 |
6 |
2 |
1 |
6 |
2 |
|
V4 |
1 |
1/7 |
1/6 |
1 |
1/7 |
|
V5 |
7 |
1 |
1/2 |
7 |
1 |
a.
Determine
the overall priorities or scores of each of the five vendors using Expert
Choice.
b.
Which
vendor has the highest score?
c.
Suppose
COST and QUALITY are equally important in vendor selection. Does the ranking of
the five vendors change? Are the rankings of the vendors sensitive to changing
this judgment? Support your answer with appropriate analysis.
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