Analytic hierarchy process as a ranking tool for decision making units Online publication date: Thu, 23-Jul-2015
by Josef Jablonsky
International Journal of Management and Decision Making (IJMDM), Vol. 14, No. 3, 2015
Abstract: Efficiency and performance evaluation is an important task in governmental decision making. This paper aims in application of analytic hierarchy process (AHP) for efficiency analysis of a general set of decision making units (DMUs). Conventional tool for analysis of efficiency of DMUs is data envelopment analysis (DEA). DEA models allow splitting the set of DMUs into two subsets - efficient and inefficient. The inefficient ones can be ranked according to their efficiency scores given by the DEA model but the efficient units cannot be ranked easily as their have identical maximal efficiency score. Various models have been proposed for ranking of efficient units in DEA. The aim of the paper is to discuss the possibility of application of AHP models for ranking of efficient or entire set of DMUs. The proposed approach is illustrated on performance evaluation of 19 Czech economic faculties. The results given by the AHP ration model are compared to those given by conventional approaches.
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