An Extension of the AHP Dummy Pivot Modeling Applied to the Restructuring of the Iron and Steel Industry in China

作者：Zhu, Keyu^*; Cooper, Orrin; Yang, Shan lin; Dong, Qing xing

来源：IEEE Transactions on Engineering Management, 2014, 61(2): 370-380.

DOI：10.1109/TEM.2014.2305662

• Analytical hierarchy/network process
• decision analysis
• iron and steel industry
• orders-of-magnitude approach of the analytic hierarchy process (OM-AHP)
• structural readjustment

The iron and steel industry of China has a wide distribution structure, which leads to low production efficiency, high resource use, and weak bargaining power among global competitors. A carefully planned and executed restructuring of the industry will provide the enterprise with a competitive advantage. Making the optimal restructuring decisions, however, is not easy because: 1) the decisions involve qualitative measures within a complex and uncertain environment, 2) the alternatives include up to 31 administrative regions, and 3) there are astounding differences in the economic development among the 31 alternatives. The orders-of-magnitude approach of the analytic hierarchy process (OM-AHP) could be a useful method to tackle the first and second challenges. However, this approach does not currently explain how to address the large differences between small items in a cluster and big items in a cluster when there are no medium items between them. A model of OM-AHP with a dummy pivot is proposed to tackle this particular challenge. This approach is then applied in a multicriteria decision making problem to both demonstrate how the proposed approach works and provide a solution for the restructuring of the steel industry in China.

• 出版日期2014-5
• 单位东北大学; 合肥工业大学