A Novel Approach for Efficiency Measurement in AHP with Mixed Criteria and Its Comparison with DEA
Subject Areas : International Journal of Data Envelopment AnalysisFarzad Rezai Balf 1 * , Fatemeh Zarabi 2
1 - Department of Mathematics, Islamic Azad University, Qaemshahr, Iran
2 - Department of Mathematics, Sari Branch, Islamic Azad University, Sari, Iran.
Keywords: Analytic Hierarchy Process, Data Envelopment Analysis, Multi-Criteria Decision-Making, Efficiency Analysis.,
Abstract :
Multi-Criteria Decision-Making (MCDM) problems often involve a combination of qualitative and quantitative criteria for evaluating alternatives. A major challenge in such problems is employing a methodology that can simultaneously and effectively process both types of criteria. While Data Envelopment Analysis (DEA) is a well-established method for efficiency evaluation in quantitative-based problems, its inherent limitations in handling qualitative criteria reduce its applicability in more complex decision scenarios. In this study, we introduce a novel efficiency measurement approach using the Analytic Hierarchy Process (AHP) and establish a mathematical comparison with the CCR-DEA model. The proposed method integrates pairwise comparisons and weight derivations for qualitative and quantitative criteria, enabling efficiency analysis without requiring the conversion of qualitative data into numerical values. The findings demonstrate that AHP not only provides a meaningful efficiency assessment in the presence of mixed criteria but also exhibits structural similarities to DEA under specific conditions. This highlights the potential of AHP as a complementary tool for MCDM problems where both qualitative and quantitative factors play a crucial role.