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Improved "BOCR" analysis with the AHP/ANP

Author: Wijnmalen, D.J.D.
Institution: TNO Defensie en Veiligheid
Source:Proceedings of 8th International Symposium on the Analytic Hierarchy Process - ISAHP 2005, 8-10 July 2005, Honolulu, Hawaii
Identifier: 464052
Keywords: Analytic Hierarchy Process · Analytic Network Process · Benefit/cost analysis · Opportunities · Risks · BOCR · Commensurability · Synthesis


This paper shows that the usual multiplicative synthesis of alternative priorities for benefits, opportunities, costs and risks, obtained from separate Analytic Hierarchy or Network models, can be ambiguous. The ratio of benefit and opportunity priorities to cost and risk priorities can be misleading when assessing the profitability of a project. The same holds for their additive synthesis, although advocated by AHP/ANP. A quotient of these priorities with weights as coefficients, not powers, will however produce sound results, provided that the four separate models are properly related to each other by weights that make the priorities on the four factors commensurate and are obtained from magnitude comparisons.