Example: Gill Glass Example: Gill Glass

Designer Gill Glass must decide
Hierarchy for the Manufacturer Selection Problem
which of three manufacturers
will develop his "signature“ Overall Goal Select the Best Toothbrush Manufacturer
toothbrushes. Three factors
are important to Gill: (1) his costs;
Criteria Cost Reliability Deliv. Time
(2) reliability of the product; and, (3) delivery time
of the orders.
Cornell Cornell Cornell
The three manufacturers are Cornell Industries, Decision Brush Pik Brush Pik Brush Pik
Brush Pik, and Picobuy. Cornell Industries will sell Alternatives Picobuy Picobuy Picobuy
toothbrushes to Gill Glass for $100 per gross, Brush
Pik for $80 per gross, and Picobuy for $144 per gross.

Slide 1 Slide 2

Pairwise Comparison Matrix: Pairwise Comparison Matrix:

Cost Cost
Gill has decided that in terms of price, Brush
Solutions:
Pik is moderately preferred to Cornell (Rating 3)
Since Brush Pik is moderately preferred to Cornell,
and very strongly preferred to Picobuy (Rating 7) . Cornell's entry in the Brush Pik row is 3 and Brush
In turn Cornell is strongly to very strongly (Rating Pik's entry in the Cornell row is 1/3.
6) preferred to Picobuy.

Since Brush Pik is very strongly preferred to
Question: Construct the Pairwsie matrix, Normalised Picobuy, Picobuy's entry in the Brush Pik row is 7
Pairwise Matrix and Priority Vector for the Cost. and Brush Pik's entry in the Picobuy row is 1/7.

Since Cornell is strongly to very strongly preferred

to Picobuy, Picobuy's entry in the Cornell row is 6
and Cornell's entry in the Picobuy row is 1/6.

Slide 3 Slide 4
 Pairwise Comparison Matrix: Normalized Matrix: Cost
Cost
Divide each entry in the pair-wise comparison
Cornell Brush Pik Picobuy matrix by its corresponding column sum. For
example, for Cornell the column sum = 1 + 3 + 1/6
Cornell 1 1/3 6 = 25/6. This gives:
Brush Pik 3 1 7 Cornell Brush Pik Picobuy
Picobuy 1/6 1/7 1
Cornell 6/25 7/31 6/14
Brush Pik 18/25 21/31 7/14
Picobuy 1/25 3/31 1/14

Slide 5 Slide 6

Priority Vector: Cost Checking Consistency

The priority vector is determined by averaging
Multiply each column of the pair-wise comparison
the row entries in the normalized matrix. Converting matrix by its priority:
to decimals we get:
1 1/3 6 .923
Cornell: ( 6/25 + 7/31 + 6/14)/3 = .298 .298 3 + .632 1 + .069 7 = 2.009
Brush Pik: (18/25 + 21/31 + 7/14)/3 = .632 1/6 1/7 1 .209
Picobuy: ( 1/25 + 3/31 + 1/14)/3 = .069

Divide these number by their priorities to get:

.923/.298 = 3.097
2.009/.632 = 3.179
.209/.069 = 3.029

Slide 7 Slide 8
 Checking Consistency Pairwise Comparison Matrix:
Reliability

Average the above results to get λmax. Gill Glass has determined that for reliability,
λmax = (3.097 + 3.179 + 3.029)/3 = 3.102 Cornell is very strongly preferable to Brush Pik and
equally preferable to Picobuy. Also, Picobuy is

Compute the consistence index, CI, for two terms.
strongly preferable to Brush Pik.
CI = (λmax - n)/(n - 1) = (3.102 - 3)/2 = .051

Compute the consistency ratio, CR, by CI/RI, where
RI = .58 for 3 factors:
CR = CI/RI = .051/.58 = .088
Since the consistency ratio, CR, is less than .10, this is
well within the acceptable range for consistency.

Slide 9 Slide 10

Pairwise Comparison Matrix: Normalized Matrix:

Reliability Reliability
Divide each entry in the pair-wise comparison
Cornell Brush Pik Picobuy matrix by its corresponding column sum. For
example, for Cornell the column sum = 1 + 1/7 + 1/2
Cornell 1 7 2 = 23/14. This gives:
Brush Pik 1/7 1 5 Cornell Brush Pik Picobuy
Picobuy 1/2 1/5 1
Cornell 14/23 35/41 2/8
Brush Pik 2/23 5/41 5/8
Picobuy 7/23 1/41 1/8

Slide 11 Slide 12
 Pairwise Comparison Matrix:
Priority Vector: Reliability
Delivery Time
The priority vector is determined by averaging Gill Glass has determined that for delivery time,
the row entries in the normalized matrix. Converting Cornell is equally preferable to Picobuy. Both Cornell
to decimals we get: and Picobuy are very strongly to extremely preferable
to Brush Pik.
Cornell: (14/23 + 35/41 + 2/8)/3 = .571
Brush Pik: ( 2/23 + 5/41 + 5/8)/3 = .278
Picobuy: ( 7/23 + 1/41 + 1/8)/3 = .151

Checking Consistency
Gill Glass’ responses to reliability could be
checked for consistency in the same manner as was
cost.

Slide 13 Slide 14

Pairwise Comparison Matrix: Normalized Matrix:

Delivery Time Delivery Time
Divide each entry in the pair-wise comparison
matrix by its corresponding column sum.
Cornell Brush Pik Picobuy
Cornell Brush Pik Picobuy
Cornell 1 8 1
Brush Pik 1/8 1 1/8 Cornell 8/17 8/17 8/17
Picobuy 1 8 1 Brush Pik 1/17 1/17 1/17
Picobuy 8/17 8/17 8/17

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 Priority Vector: Pairwise Comparison Matrix:
Delivery Time Criteria
The priority vector is determined by averaging The accounting department has determined that
the row entries in the normalized matrix. Converting in terms of criteria, cost is extremely preferable to
to decimals we get: delivery time and very strongly preferable to
reliability, and that reliability is very strongly
Cornell: (8/17 + 8/17 + 8/17)/3 = .471 preferable to delivery time.
Brush Pik: (1/17 + 1/17 + 1/17)/3 = .059
Picobuy: (8/17 + 8/17 + 8/17)/3 = .471

Checking Consistency
Gill Glass’ responses to delivery time could be
checked for consistency in the same manner as was
cost.

Slide 17 Slide 18

Pairwise Comparison Matrix: Normalized Matrix:

Criteria Criteria
Divide each entry in the pair-wise comparison
matrix by its corresponding column sum.
Cost Reliability Delivery

Cost 1 7 9 Cost Reliability Delivery

Reliability 1/7 1 7 Cost 63/79 49/57 9/17
Delivery 1/9 1/7 1 Reliability 9/79 7/57 7/17
Delivery 7/79 1/57 1/17

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 Priority Vector:
Overall Priority Vector
Criteria
The priority vector is determined by averaging The overall priorities are determined by
the row entries in the normalized matrix. Converting multiplying the priority vector of the criteria by the
to decimals we get: priorities for each decision alternative for each
objective.
Cost: (63/79 + 49/57 + 9/17)/3 = .729
Priority Vector
Reliability: ( 9/79 + 7/57 + 7/17)/3 = .216
for Criteria [ .729 .216 .055 ]
Delivery: ( 7/79 + 1/57 + 1/17)/3 = .055
Cost Reliability Delivery
Cornell .298 .571 .471
Brush Pik .632 .278 .059
Picobuy .069 .151 .471

Slide 21 Slide 22

Overall Priority Vector

Thus, the overall priority vector is:

Cornell: (.729)(.298) + (.216)(.571) + (.055)(.471) = .366

Brush Pik: (.729)(.632) + (.216)(.278) + (.055)(.059) = .524
Picobuy: (.729)(.069) + (.216)(.151) + (.055)(.471) = .109

Brush Pik appears to be the overall recommendation.

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