Fundamentals of the Analytic Network Process—multiple networks with benefits, costs, opportunities and risks
Joseph M. Katz Graduate School of Business
University of Pittsburgh
: Sep, 2004
: Journal of systems science and systems engineeringVol.: 13- Issue: 3- Pages: 348-379
: The general theory of the ANP enables one to deal with the benefits, opportunities, costs, and risks (the BOCR merits) of a decision, by introducing the notion of negative priorities for C and R along with the rating (not comparison) of the top priority alternative synthesized for each of the four merits in terms of strategic criteria to enable one to combine the four B, O, C, and R values of each alternative into a single outcome. Strategic criteria are very basic criteria individuals and groups use to assess whether they should make any of the many decisions they face in their daily operations. They do not depend on any particular decision for their priorities but are assessed in terms of the goals and values of the individual or organization. Synthesis is made with two formulas, one multiplicative and one additive subtractive that can give rise to negative overall priorities. This paper summarizes and illustrates basic complex decisions involving several control criteria under each of the BOCR merits.
: Analytic Network Process, ANP, Forecasting, US economy, Benefits-Opportunities-Costs-Risks, BOCR, Sensitivity analysis