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Application of AHP Method in Traffic Planning

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Abstract

Achieving competitiveness on the market ensures business continuity within terms of globalization. Consequently, competitiveness is determined by various factors which grading and evaluation require corresponding approach. The final result is a set of information used as basis for making the concrete decisions. Traffic of goods and services has a special importance in ensuring the concrete business, not just in logistic sense. Traffic planning and making decisions relevant to that area directly influence the business. Today there are different methodologies and techniques of planning in field of traffic. The choice of technology usually depends upon business management. Application of AHP method is one of the possibilities that can be used within mentioned circumstances. This paper analyses possibilities of applying AHP method in making decisions regarding planning and implementation of plans in traffic and ensuring the qualitative business logistics.
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APPLICATION OF AHP METHOD IN TRAFFIC PLANNING
Ivan Pogarčić, Miro Frančić, Vlatka Davidović
Business Dept, Study of Information Systems, Polytechnic of Rijeka, Trpimirova 2/V,
51000 Rijeka, Croatia
{pogarcic, mfrancic, vdavid}@veleri.hr
Abstract
Achieving competitiveness on the market ensures business
continuity within terms of globalization. Consequently,
competitiveness is determined by various factors which grading and
evaluation require corresponding approach. The final result is a set
of information used as basis for making the concrete decisions.
Traffic of goods and services has a special importance in ensuring
the concrete business, not just in logistic sense. Traffic planning and
making decisions relevant to that area directly influence the
business. Today there are different methodologies and techniques of
planning in field of traffic. The choice of technology usually
depends upon business management. Application of AHP method is
one of the possibilities that can be used within mentioned
circumstances. This paper analyses possibilities of applying AHP
method in making decisions regarding planning and implementation
of plans in traffic and ensuring the qualitative business logistics.
Keywords
Traffic, AHP, Decision making, Logistics, Competitiveness
I. Introduction
Planning is a process which starts with precise, clear
definition and description of a desired outcome for planned
acitivities, i.e. with defining a goal. A goal must be clearly
defined and described. The realization of a defined goal is done
through precisely defined arrangement of a series of activities
which will enable one to achieve a defined goal. Each activitiy
implies engaging certain resources. Human, physical and
financial resources are engaged in particular planned activities
with different dynamics. From that point of view, time needed to
carry out planned activities and the overall plan represents the
most important resource. Time management will be a criterion to
decide how and when the plan will be realized. According to this
criterion plans can be classified into strategic, tactical or
operational ones (Pic 1).. A plan should also comprise a detailed
list of circumstances and possible situations in which appropriate
decision-making could be expected. Planning also includes
optimization of utilization level of the above mentioned
resources i.e. minimum cost with maximum efficiency in the
shortest period of time. A plan must necessarily contain
implementation strategy and a schedule of occasional controls
and positions where certain potential modifications could be
done without effecting the realization.
The above mentioned principles are applicable in general
circumstances. In particular cases it is necessary to take into
consideration some specific qualities in order to ensure
efficiency and consistecy of a plan. Taking into consideration
these specific qualities has also a preventive character,
particularly in eliminating in a plan possible gaps and mistakes,
dilemmas and vagueness, and it also gives the possibility for
decision-making in a situation of a multiple choice.
Picture 1. Levels of Planing
A plan must have a purpose. In a specific business system,
planning has management function. Therefore competent
persons from the management level have to set a goal. The
management level is responsible for the plan realization
feasibility and the acceptability of a suggested plan.
Defining planned goals usually results in making them
public, which can be considered as a starting point for plan
realization. In a business environment a plan implies achieving
implementation conditions of a business system. In the context
of globalization two important goals could be found in literature
lately: constant business importance and maximum
competitiveness on the market.
Planning is therefore a consequence of changed
circumstances in which business system exists. A specific plan
must be based on detailed and comprehensive research and
analysis of these circumstaneces.
Realization of a plan is a continuous process which starts
with its completion and acceptance, which is preceded by a
decion to accept the plan. Decision-making like planning, is a
process, but the final outcome of that process is a decision which
from the time aspect is a discreet event. On a time scale of the
realization of a plan, decision-making is a process which is
necessarily connected with check points and the assessment of
the plan's feasibility level.
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Decision-making, like planning, involves defining goals that
want to be achieved with this decision. In a business system and
its environment both through plans and decisions, the desired
circumstaces are tried to be achieved.
Decision-making, unlike planning is a situation when a
person who makes a decision, is in a position where he must
choose between two or more alternative possibilities. Potential
multiple possibilities of achieving desired goals require setting
criteria. They must characterize certain alternative and show
clearly what makes it different from other alternatives. In this
case an alternative is characterised in terms of quality and
quantity. If in decision-making more criteria is used, they do not
have to be equally important. Therefore criteria are assigned a
level of weight and severity. In that way we determine their
importance. It is common for a decision-maker, a person who is
an expert in a given field, to decide about the level of weight.
There are various methods and techniques of decision-making,
simple and more complex ones. Analytic hierarchy process
(further in the text AHP) according to the classification is a
method for multicriteria decision-making.[1] The concept of
AHP, as well as some other theories have been developed by
Thomas Saaty, American matematician from the University of
Pittsburgh [2]. The author of AHP Thomas L. Saaty called this
method a process, and not a method probably becauseof the
process character of its elements.
II. AHP – analytic hierarchy process
II.1. Approach
A hierarchy represents a system of organizing and ranging
phenomena, people, things, ideas, etc. Each element of the
system, except the highest one, is subordinate to another element
in the system. Hierarchical diagrams are therefore most
commonly shaped as pyramids, because of the fact that at the top
of the structure there is only one element, even though in
practice it does not have to be the case.
Human structures are most commonly organized as
hierarchies, where we use this system to share responsibilities,
carry out management and rationalize communication. As for
«things» included in hierarchical structures, we can take as an
example a diagram of any system where at one level we can
determine periphery and base and the top at the other level.
In the world of ideas, we use hierarchy to ensure clearer
notion of complex reality: we structure the real world, system
and environment in constituent parts. In that way, going through
a process, we gain complete understanding about the complex
reality that we study. We repeat the procedure by separating
elements into smaller parts. We continue this division down to
the basic level where we can unmistakably comprehend a part of
the system as an independent whole. When observing elementary
part, we temporarily ignore the rest of the system. During that
process we try to comprehend the complexity of a system we
study, i.e. a system within which we make certain decisions.
II.1.1. What is analytic hierarchy process (AHP)?
Analytic hierarchy process (AHP) is a methodological
approach which implies structuring criteria of multiple options
into a system hierarchy, including relative values of all critera,
comparing alternatives for each particular criterion and defining
average importance of alternatives.
In that way a basis is created to make appropriate decisions.
AHP is a structured technique which is used with complex
decision-making. The goal is to single out and offer one out of
several possible decisions. While doing so one does not insist on
exclusively «correct» decision, but one chooses one which
through this method proves to be the most adequate or the most
useful one for the user. AHP method offers meaningful and
rational framework for structuring problems, presentation and
quatification of elelents that make a problem. Techniques of
putting together these elements and techniques of evaluating
alternative solutions enable directing towards a final solution.
Since the method of AHP decision-making can be combined
with various methods of development planning applicable in
every situation, when a decision should be made choosing
between alternative solutions, this approach is used in solving
various different situations where the goal is to make decisions
in areas like government administration, economy, health,
education etc.[3]
II.1.2. How users see AHP?
The users of AHP first decompose /break down a problem
into a hierarchical structure or easily undestood sub-problems,
each of which could be observed separately. Elements of such a
structure can be put into relationship with different aspects of
solution to a problem whether they are tangible i.e. more or less
obvious, carefully measured or roughly estimated, understood a
bit better or worse – which means that it is useful everything that
can be used in given circumstances.
After the initial structure has been set up, the task of an
analyst is to start systematic assessment of elements comparing
them with one another in pairs. In the process of comparison
specific data which are linked to particular elements can be used
or an estimate about relative importance and value of elements
can be done. The key assumption of this method is human power
and ability of judgement against exact information.
Further on, AHP expresses these comparisons in numeric
values which can be easily processed and compared in the
context of a bigger picture of the observed problem. Numeric
value or certain priority is derived from each element in the
hierarchy, enabling various and very often unmeasurable
elements to be compared in a rational and consistent way. This
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approach makes AHP different from all other techniques of
decision-making.
In the last phase numeric priorities are derived from the
observed and established alternatives. Since these numbers
represent relative probability of an alternative in achieving a
goal for which a decision is being made, they can be used as a
guideline for future actions.
II.1.3. Application of AHP, where and how?
Although this method can be used in individual processes of
decision-making, it is most useful in situations where teams of
experts cooperate in solving complex problems, especially those
which involve a high level of risk, and are based on human
judgement and perception, with far-reaching effects.
It is important to stress also unique advanateges of AHP
method when, for example, decisive elements for making
decisions are difficult to compare and to quatify or in the
circumstanes where there are communication problems between
members of a team as a consequence of different profiles of
experts, differences in terminology, points of view etc.
Potential environments where AHP can be used are
numerous and they represent a source of a high number of very
different results in the area of planning, transport, setting
priorities and choosing the right alternative. Many of these
environments are not widely known because of their specific
quality. To a large extent here we talk about situations
concerning big business settings and making strategic and long-
term decisions accompanied by certain discretion or safety
limitations.
Here are some examples how AHP which have been made
public and have been dealt with in literature, are used
(http://en.wikipedia.org/wiki/Analytic_Hierarchy_Process,
septembar 2008):
Deciding how best to reduce the impact of global climate
change (Fondazione Eni Enrico Mattei)
Quantifying the overall quality of software systems
(Microsoft Corporation)
Selecting university faculty (Bloomsburg University of
Pennsylvania)
• Deciding where to locate offshore manufacturing plants
(University of Cambridge)
Assessing risk in operating cross-country petroleum
pipelines (American Society of Civil Engineers)
Deciding how best to manage U.S. watersheds (U.S.
Department of Agriculture)
AHP is sometimes used when designing highly specialized
procedures for specific situations, for example when evaluating
building structures according to their historic importance. In the
USA this method is included in the project of monitoring the
condition of federal freeways, which are superrvised by video
cameras. Engineers used AHP method to determine optimal area
which the project should cover, and at the same time to account
for budget for investors.
Even though one may get impression we are talking about
methodology which does not imply specific academic education,
AHP is nevertheless a subject of study at some of the most
renowned universities.
AHP is considered an important subject in technical schools
as well as in schools of economics. APH was, for example,
presented to some Chinese experts some twenty years ago, who
accepted its implementation, among other things because of the
fact that its methods very highly compatible with traditional
Chinese systems of decision-making. In China more than 900
different papers have been presented on the subject.[6-15] There
is also a monthly scientific review dedicated exclusively to this
topic.
This is where majority of papers related to the problems of
planning and organising transport comes from. University of
Zagreb has a softwrae Expert Choice and the university scientists
have published several papers using this method. [5]
II.2. Basic tenets of AHP
A group of axioms which in detail define a problem in a
system and its evnironment represent basic tenets of AHP [2].
It is based on the well-defined mathematical structure of
consistent matrices and their associated right-eigenvector's (non
zero vector) ability to generate true or approximate weights[2].
The AHP methodology compares criteria or alternatives with
respect to a criterion, in a natural, pairwise mode. AHP uses a
fundamental scale of absolute numbers that has been proven in
practice and validated by physical and decision problem
experiments. The fundamental scale has been shown to be a
scale that captures individual preferences with respect to
quantitative and qualitative attributes just as well or better than
other scales [2]. It converts individual preferences into ratio
scale weights that can be combined into a linear additive weight
w(a) for each alternative a. The resultant w(a) can be used to
compare and rank the alternatives and, hence, assist the decision
maker in making a choice. Given that the three basic steps are
reasonable descriptors of how an individual comes naturally to
resolving a multicriteria decision problem, then the AHP can be
considered to be both a descriptive and prescriptive model of
decision making. The best way to represent AHP method is to
describe basic AHP functions, axioms and basic AHP principles.
II.2.1. AHP functions
According to [2] AHP functions are:
Structuring complexity decomposition. The aim is to
structure a problem into smaller «sub-problems» and in that way
to make it easier to work with in the process. Constructing such a
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structure starts from the top down to bottom, from more general
towards more detailed and specific observations of the problem.
At the beginning, the problem is not structured while more
detailed division into sub-models is done in the subsequent
iterations.
These modules will become separate hierarchical modules
inside the whole. Following the hierarchy from the top to the
bottom, with AHP goals are gradually singled out, semantic
branching and defining modules is done. Criteria are set – testing
parameters and evaluating alternatives measuring the level of
success of a certain solution according to a given criterion. The
hierarchy does not have to be complete, i.e. one element does
not have to be a criterion for all subordinate elements. Each
branch is divided into appropriate rational level for working out
details. At the end of this phase, the iteration process transforms
non-structural problem into a hierarchy defined by criteria,
which can then be easily manipulated in vertical and horizontal
directions. Increasing the number of criteri, their importance
decreases and they become equal which eventually is solved by
assigning values to each criterion.
It is important for a criterion to meet the requirements for
independence of alternatives and to meet expectations including
all important alternatives and criteria.
Measuring on a ratio scale Assessment. Using hierarchy
allows a high level of concentration when judging separately
each quality, independently of other qualities, which is important
in order to make the right decision.
Assigning relative values to each criterion is based on the
importance of the module content to which the criterion belongs.
The sum total of all criteria that belong to modules directly
defines the value of the «parent module» (super-module) i.e. it
assumes the value of 100% or 1. The global importance acquires
an average value of the sum of all relative importance of the
given criteria. If we, for example, compare alternatives with the
goal of purchasing land and construcing a building, we can say
that for an investor location will have priority over price or the
price over the time needed to finish construction work. Next
activity is evaluating or assessing all alternative solutions and
thier mutual comparison. The matrix of these desired solutions is
estimated and the so-called coefficient of consistency is added to
it where value 1 means that all the desired solutions internally
for this module are consistent. On the other hand, there can be
internal inconsistency when we say that X is more desirable than
Y, and Y is more desirable solution than Z, and Z is more
desirable than X and then this coefficient will acquire lower
value.
According to many, the quality of this step of AHP process
represents key importance supporting the opinion that AHP is
theoretically well organized. According to AHP assessment is
done in the way that a relative assessment is assigned to the most
specific decisions within hierarchy, then to a wider context and
so on up to the top where the total assessment is calculated.
Synthesizing - Because complex, crucial decision situations
often involve too many dimensions for humans to synthesize
intuitively, we need a way to synthesize over many dimensions.
II.2.2. Principles of AHP
Three basic principles of AHP and certain axiom tenets are
linked with the above mentioned functions as follows [2]:
Decomposition The principle of decomposition presupposes
structuring of a complex problem into hierarchical modules or
clusters down to the level of elementary sub-module.(Pic. 2)
Pic 2. Hierachical threshold levels
The principle of comparative judgements This principle
implies comparisom of pairs of all elements in a certain
hierarchy taking into consideration superior hierarchy.
Comparing pairs is necessary because local priority of
elements must be defined, taking into consideration their
superior element.
The principle of hierarchic composition or synthesis is
applied to multiply the local priorities of the elements in a
cluster by the 'global' priority of the parent element, producing
global priorities throughout the hierarchy and then adding the
global priorities for the lowest level elements.
II.2.3. Axioms of AHP
Each theory is based on axioms, some basic and implied
facts which make it applicable. AHP is based on three relatively
simple axioms.
The first axiom, the reciprocal axiom, requires that, if
PC(EA,EB) is a paired comparison of elements A and B with
respect to their parent, element C, representing how many times
more the element A possesses a property than does element B,
then PC(EB,EA) = 1/PC(EA,EB).
The second, or homogeneity axiom, states that the elements
being compared should not differ by too much, else there will
tend to be larger errors in judgment. When constructing a
hierarchy of objectives, one should attempt to arrange elements
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in clusters so that they do not differ by more than an order of
magnitude in any cluster.
The fundamental scale for pairwise comparisons
Intensity of
importance Definition Explanation
1 Equal
importance
Two elements contribute
equally to the objective
2 Equally
to moderately *
3 Moderate
importance
Experience and judgment
slightly favour one element over
another
4 Moderately
to strongly *
5 Strong
importance
Experience and judgment
strongly favour one element
over another
6
Strongly
to very
strongly
*
7
Very
strong
importance
One element is favoured
very strongly over another; its
dominance is demonstrated in
practice
8
Very
strongly to
extremely
*
9 Extreme
importance
The evidence favouring one
element over another is of the
highest possible order of
affirmation
Intensities of 2, 4, 6, and 8 can be used to express
intermediate values. Intensities 1.1, 1.2, 1.3 (at sublayer level)
can be used for elements that are very close in importance.
Table The AHP verbal scale ranges 1 to 9 (Saaty scale)[4]
The third axiom states that judgments about, or the priorities
of, the elements in a hierarchy do not depend on lower level
elements. This axiom is required for the principle of hierarchic
composition to apply.
A fourth axiom, introduced later by Saaty, says that
individuals who have reasons for their beliefs should make sure
that their ideas are adequately represented for the outcome to
match these expectations. While this axiom might sound a bit
vague, it is important because the generality of AHP makes it
possible to apply AHP in a variety of ways and adherence to this
axiom prevents applying AHP in inappropriate ways.
II. 3. Advantages, disadvantages and criticism of AHP
AHP helps comprise subjective and objective measurements
offering useful mechanism for checking their consistency and
alternatives which members of the team suggest. In that way they
reduce differences which make decision-making difficult.
AHP also helps minimize the most frequent mistakes in the
process of decision-making like lack of focus, mistakes in the
segment of planning, monitoring all participants etc.
Special advantage is relative simplicity of use, specially
because of use software packages available on the market.
There are several companies in the world that develop
software solutions as support to AHP process of decision-
making.
Some of them are: Expert Choice and Team Expert Choice
2000 (http://www.expertchoice.com), HIPRE 3+ i HIPRE 3+
Group (http://www.hipre.hut.fi) software which supports
methods of AHP and SMART, Logical Decision
(http://www.logicaldecisions.com ) packages available as demo
versions linked with software, meant for groups, and Web-
HIPRE Global Decision Support (http://www.hipre.hut.fi/) web
version of HIPRE 3+ software and good quality eLearning
material.
In spite of the success of AHP method in practice and a large
number of scientific papers, AHP method has been criticized.
Some of the objections are nonexistence of theoretical basis for
constructing hierarchies. This leads to various models that
describe identical situation which can produce completely
different final solutions. AHP assessment is also criticized
because it is considered unreliable and based on the user
subjective notion, because of deviation from individual values –
assessment of individual elements and composite collective
values. AHP is criticized for the lack of foothold in the basic
statistics theory.
III. AHP and transport planning
In order to present uses of AHP method in planning and
organizing transport, we shall start with some basic tenets
important for this paper:
AHP is a method which does not depend on the type of
problem. This means that it can be equally applied in planning
any type of transport: road, rail, air or maritime-river,
respectively, if we look at the means of transport or postal
services, telecommunication or the transport of goods and
services if we observe business function of system.
AHP can be equally applied in situations with different
problem complexity and organization size. In other words it can
be applied in medium-sized companies like for example in a
freight forwarding firm as well as in a state railway company. In
all situations it is possible to separate a problem into: a goal,
criteria and alternatives.
AHP as a multiple criteria method of decision-making
implies participation of a team of experts, starting with
specialists in a specific field to specialists in computer
application, if there is any need for them. AHP can be combined
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with Fagan inspection when the proposal of the problem
decomposition/division is completed.
AHP method can be applied at any point of the plan
realization when it is necessary to make a decision. The final
goal set by the plan and strategy of a plan maker depends on the
nature and the level of difficulty of this decision.
AHP can be carried out in two ways: relatively and
absolutely. In the situation of relative judgement, alternatives
are compared pairwise to reach the priority criterion. With
absolute judgement we do not do that. In both cases we have to
be careful not to deviate from the desired goal. Absolute
judgement is usually used where there are lots of alternatives.
IV. Practical carrying out of the AHP method
To use AHP in practice means to apply principles of AHP
method and realize AHP functionalities in a specific case, for
example in planning public city transport network.
For graphic representation of hierarchical structure the most
appropriate is a tree structure. A simple form of this structure
includes the goal of a plan and project at the highest level i.e. at
the top of the tree. Criteria are subordinate to the goal. They are
at the following level. Alternatives are at the lowest level. Each
alternative is linked to the superior level and connected with
criteria.
If there is some specific plan, the picture is more complex.
The level in the middle, the level of criteria can be/must be
divided into layers. In that way the hierarchy of sub-criteria is
created. When such hierarchy of criteria is set up, priorities are
defined for each node separately. This activity is somewhat
complex, and the participants have many options on the road to
completing it. According to [3] Analytic Hierarchy Process
(AHP) can be divided into nine phases:
I. Beginning. Defining a problem and collecting necessary
information. Identification markets and users , user needs and
requirements, service operation etc.. If there are alternatives in
the choice of projects, the most appropriate one is decided for.
At this level already simple assessment of the project with AHP
method can be applied. Methodologically this is a moment to
kick off the project.
II. List alternatives importance of criteria. In this phase a
certain alternative is chosen out of a group of identifiable
possibilities. The result of this phase is a list of all alternatives.
The decision maker should examine the scores to ensure that
they are sensible and should be adequately aware of the issues so
as to defend the scores. If there are n alternatives, then n(n - 1)/2
pairwise comparisons are needed. Clearly, for expedient
application of AHP, the alternatives must be limited to a
reasonable number.
III.1. Define threshold levels. The threshold levels are
defined; these are the minimum requirements which an
alternative has to fulfill. (pic 3.)
III.2. Determine acceptable alternatives. All alternatives
listed in step 1 are reviewed with respect to the threshold levels.
Alternatives which do not meet these requirements are
dismissed. Phases III.1. and III.2. can be carried out
simultaneously.
IV. Define criteria. This phase assumes the completion of
phase II. and III.. The project team or management structures
define criteria that will be used when judging alternatives. [2vz]
Suggest three methods to select criteria, a pro/con analysis of the
alternatives, using 'off-the-shelf' norms, and the critical success
factors technique.
V. Develop decision hierarchy. This phase follows phase IV.
The team develops a decision hierarchy. This hierarchy consists
of at least three levels, a goal, criteria and alternatives. These
elements are represented in a tree structure. The hierarchy
represents the structure of the decision problem.
VII.1. Compare criteria pairwise (important of criteria) AHP
determines the relative importance of each criterion. This is done
by means of the same process which was used in the previous
step to derive the relative priorities of the alternatives. The Team
or decision maker compares all criteria pairwise. The manager
indicates which criterion is more important, and to what extent.
Pic 3. . The decision hierarchy levels for the project
VI. Compare alternatives pairwise (Relative priorities of
projects). For each criterion, the decision maker evaluates all
alternatives pairwise. For each criterion, every possible
combination of two alternatives is judged in this way.(table 2).
The other criteria or characteristics of an alternative should not
be considered in making the pairwise comparisons with respect
to one particular criterion. Team can make numerical or verbal
judgements. It is assumed that the prevoius phase V. is
completed.
Criteria n
Project A Project B Project C
Project A 1 2 8
Project B 1/2 1 6
Project C 1/8 1/6 1
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Total 13/8 19/6 15
Table 2. The full judgement matrix (example)
Criteria n Project
A
Project
B
Project C
Project A 8/13 12/19 8/15
Project B 4/13 6/19 6/15
Project C 1/13 1/19 1/15
Total 1 1 1
Table 3. The normalised pairwise comparison matrix
VII.2. Calculate overall priorities of alternatives. The
overall priorities are determined by means of a linear additive
function, in which the relative priorities for an alternative are
multiplied by the importance of the corresponding criteria and
summed over all criteria. The AHP analysis shows which project
has the highest priority. Phases VII.1 and VII.2. are carried out
simultaneously, and it is assumed that phase VI. is completed.
Criteria n Project
A
Project
B
Project
C
Row
Average
Project A (8/13 + 12/19 + 8/15) /
3 0.593
Project B (4/13 + 6/19 + 6/15) /
3 0.341
Project C (1/13 + 1/19 + 1/15) /
3 0.066
Total 1
Table 4. The relative priorities for the criteria n
VIII. Sensitivity analysis. Sensitivity analysis is the most
important moment in the AHP process. Before the Team or
Management chooses the plan with the highest overall priority, a
sensitivity analysis can show the robustness of the overall
priority rating. Sensitivity analysis shows to what extent the
overall priorities are sensitive to changes in the importance of
criteria. The more stable the ranking of the alternatives, the more
confident the manager will be in the proposed choice. This phase
assumes that all the previous phases have been completed.
IX.Final activities. Preparation of a proposal: the plan or
project with the highest level of priority. Preparation of the
project for the realization.
V. Conclusion
Planning business activities is of vital importance for
realizing business goals completely, on time, while meeting the
required standards of quality at the same time.
Decision-making is an activitiy which should adequaltely be
incorporated in the process of realization of the accepted plan.
Planning and organization in a business system which deals
with transport and/or logistics because of specific demands of
the business processes could be a very demanding job. The
above mentioned activities by complexity are proportionally
dependent on the size and structure of the business system, but
their seriousness and importance are constant.
Which and what methods of planning and decision-making
will be applied in a specific situation depends on particular case
and circumstances in which that business system functions. In
the context of business globalization, a business system must
constantly update its business functions in order to maintain
importance and position on the market. In such circumstances, a
well coordinated team of experts that will have some common,
but also some supplementary competence should assume the task
of planning and decision-making. The choice and application of
some of the developed and accepted methods of decision-
making in transport, AHP included, will depend on, among other
things, on these competences. Developed computer applications
which apply some of these methods are available on the market
today at very reasonable price. Their use assumes that some
member(s) of the team has been adequately trained. Computer
application today does not necessarily require information
scientist as was the case in the past, because new generations of
experts have adequate competences in applying ICT in the field
they have specialized in.
Considering these needs, it is important today to prepare in
the best possible way future experts who will work in the field of
organizing traffic and logistical functions of a business system.
Incorporating these methods into school curricula through
practical application in specific or hypothetical cases with the
use of available computer packages such as Mathematica, Expert
Choice or, HIPRE 3+, becomes an imperative. AHP method can
also be used as a powerful means in simulations and preparation
of alternative models of business system, especially when
functioning of a business system in a specific environment needs
to be tested.
References
1. Hwang, C.L., K. Yoon; Multiple attribute decision making:
methods and applications, a state of the art survey, Springer-
Verlag, New York,
2. Saaty, T. The Analytic Hierarchy Process, McGraw-Hill, New
York. 1980.
3. Huizingh, E., Vrolijk, H.: Decision Support for Information
Systems Management: Applying Analytic Hierarchy Process,
SOM - reports University of Groningen, 1995.
4. Grandzol, John R. Improving the Faculty Selection Process in
Higher Education: A Case for the Analytic Hierarchy
Process, IR Applications 6. (August, 2005).
ISEP 2008
5. Bošnjak, I., Kavran, Z., Matijević, D. Dizajn dostavnih
područja javnog poštanskog operatora primjenom ahp
modela, Promet Traffic&Transportation, Zagreb
6. Peng, Q., Wang K.C. P., Qiu, Y., Pu, Y., Luo,X, Shuai, B.
The Evaluation of Urban Public Traffic Line Network Based
on the Grey-AHP Method, International Conference on
Transportation Engineering 2007 (ICTE 2007), Chengdu,
China, July 22–24, 2007.
7. Gong, X., 1991 "Haulage Mode-Choice of Chinese Railway
Traffic by the Analytic Hierarchy Process", Proceedings of
the 2nd International Symposium on The Analytic Hierarchy
Process, Pittsburgh, PA, 507-520.
8. He, Guoguang, X. and H. Liu, 1988 "An Application of AHP
in the Traffic Planning", Reprints of the International
Symposium on The Analytic Hierarchy Process, pp. 465-
468, Tianjin University, Tianjin, China, Sept. 6-9.
9. Kinoshita, E., 1990 "A Study on Determining Priority of
Improvement for Road Using AHP", Traffic Engineering
25/2, 9-16.
10. Tzeng, G.H., J.Y. Teng, T.A. Shiau and W.J. Hwang, 1990
"Computer-aided Multicriteria Decision Analysis for Power
Generation Mix Problem", Energy Research Group and
Institute of Traffic and Transportation, National Chiao
University, Taiwan.
11. Ulengin, F., 1994 "Easing the Traffic in Istanbul: at What
Price?", Journal of Operational Research Society 45/7, 771-
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the Multiobjective Optimization of Urban Public Traffic
Large Scale Systems", Hunan Keji Daxue Xuebao 1/2-3, 53-
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PRocess Using Analytic HIerarchy Process (AHP) Model
Approach" in: 38th Annual Air Traffic Control Association
Convention Proceedings, Nashville, TN. Symposium on The
Analytic Hierarchy Process, Pittsburgh, PA, 521-534.
14. Hamalainen, R.P. and M. Poyhonen, 1996 " On-line group
decision support by preference programming in traffic
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15. He, G., 1991 "Some Applications of AHP to the Urban
Traffic System", Proceedings of the 2nd International
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PA,521-534.
BIOGRAPHIE/PERSONAL DATA
1. First / Middle / Family Name: Ivan, Pogarčić
2. Titles: MSc in Information System
3. Position / Since: Head of Education
4. Institution: Polytechnic of Rijeka
5. Place and Date of Birth : 1953-07-18
6. Nationality / Citizenship: Croatian/Croatia
7. Field of interests (key words): Database, Object-Oriented
Analysis and Design , Developement of Information
System, Project management ,e-learning
8. Hobbies: Skiing, music
9. E-mail address: pogarcic@veleri.hr
10. Site: www.veleri.hr/pogarcic
11. Phone & Fax #: +385 98 456 065 & +385 51 673 529
12. Postal address: Marinici Mucici 46 a, 51216 Viskovo,
Croatia
(picture place)
1. First / Middle / Family Name: Miro, Frančić
2. Titles: Bsc. of mathematical science
3. Position / Since: Lecturer, since 2003.
4. Institution: Polytechnic of Rijeka
5. Place and Date of Birth : 1953-02-16
6. Nationality / Citizenship: Croatian/Croatia
7. Field of interests (key words): Strategic planning and
development of information systems, Modelling, IT
management, Information system quality, Project
management
8. Hobbies: Hiking, Gardening
9. E-mail address: mfrancic@veleri.hr
10. Site: www.veleri.hr/francic
11. Phone & Fax #: +385 91 53 03 666 & +385 51 353 777
12. Postal address: Porečka 4, 51000 Rijeka, Croatia
(picture here)
1. First / Middle / Family Name: Vlatka, Davidović
2. Titles: B.Sc.
3. Position / Since: Asistent
4. Institution: Polytechnic of Rijeka
5. Place and Date of Birth : Rijeka, 1971-03-03
6. Nationality / Citizenship: Croatian/Croatia
7. Field of interests (key words): Object-Oriented Analysis
and Design
8. Hobbies: Lego, mount climbing
9. E-mail address: vlatka.davidovic@veleri.hr
10. Site: http://www.veleri.hr/~vdavid/
11. Phone & Fax #: +385 91 253 7260
12. Postal address: Trinajstici 21, 51215 Kastav, Croatia
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