Calculate AHP for moter bike

125CC MOTORCYCLE BIKE

Risk and Decision Analysis in Projects Assignment 2: AHP

Name: Malik Ghulam Abbas CMS: 402540 Date: Jan 25,2018

A.

Identify the Decision Purchasing a new bike in Pakistan is still a dilemma, the purpose of this AHP analysis to help to choosing the best 125 cc bike in your desire budget.

B.

Features

No

Feature

Explain the feature and why you picked it

1 2

Comfort Fuel Economy

3 4 5

Value for Money Style Performance

Better Comfort help in healthy drive and increase daily usability. Fuel Economy is very important because it is promotional with daily usage. Does it worth what spent on it. Better Style has more resale value and demand in market. Better Performance decrees the maintenance and other expenses.

C.

Feature Preference

Pair

Score

Reason

Comfort – Fuel Economy

0.33

Comfort – Value for Money

0.12

Comfort – Style

0.50

Comfort – Performance

0.20

Fuel Economy – Value for Money

0.20

Fuel Economy – Style

0.50

Fuel Economy – Performance

0.33

Fuel Consumption is directly related to Economy so it has more important than Comfort. Value for money is related to satisfaction so it has more score Better Style increase the demand so it has more value. Performance is also related to economy so is important Fuel economy can be compromised as compared to value for money Style is also highly demanded so fuel economy can be compromised for style Performance relate to maintenance cost, stability of driving and road grip etc., so it has more valuable

Value for Money – Style Value for Money – Performance Style – Performance

5 3 0.33

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Performance relate to maintenance cost, stability of driving and road grip etc., so it has more valuable

D.

Preference Vector Comfort

Comfort Fuel Economy Value for Money Style Performance

Value for Money

Style

Performance

1 3.00 8.00

Fuel Economy 0.33 1 5.00

PV-F

0.12 0.20 1

0.50 0.50 5.00

0.20 0.33 3.00

0.047555 0.094433

2.00 5.00

2.00 3.00

0.20 0.33

1 3.00

0.33 1

0.111559 0.242416

0.504037

CI: 3.7%

E.

Alternates available

No A

Name Honda

B

Yamaha

C D

Suzuki Metro

F.

Description Honda is most popular brand in Pakistan for Bike manufacturing. And most big player in the market with almost 47% shares. Yamaha has Introduce New model of 125cc Bike in the market, It has Captured huge market. Suzuki is also enter in the race for 125cc and 150cc Bikes in Pakistan. Metro is also a famous brand targeting low-income customers.

Comparison of Alternates

Pairwise comparison for Comfort:

Honda Yamaha Suzuki Metro CI=

Honda 1 5.00 0.33 0.50

Yamaha 0.20 1 0.17 0.14

Suzuki 3.00 6.00 1 0.33

Metro 2.00 7.00 3.00 1

PV-1 0.180781 0.628403 0.122118 0.068698

Suzuki 0.50 0.50 1 0.33

Metro 2.00 3.00 3.00 1

PV-2 0.187295 0.293165 0.412087 0.107453

Pairwise comparison for Fuel Economy:

Honda Yamaha Suzuki Metro CI=

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Honda 1 2.00 2.00 0.50

Yamaha 0.50 1 2.00 0.33

Pairwise comparison for Value for Money :

Honda Yamaha Suzuki Metro CI=

Honda 1 0.33 0.25 0.14

Yamaha 3.00 1 0.33 0.20

Suzuki 4.00 3.00 1 0.20

Metro 7.00 5.00 5.00 1

PV-3 0.530085 0.264061 0.154481 0.051373

Suzuki 3.00 5.00 1 0.33

Metro 2.00 7.00 3.00 1

PV-4 0.187918 0.613946 0.129034 0.069102

Suzuki 0.50 2.00 1 0.20

Metro 5.00 9.00 5.00 1

PV-5 0.179132 0.497469 0.275146 0.048253

Pairwise comparison for Style:

Honda Yamaha Suzuki Metro CI=

Honda 1 5.00 0.33 0.50

Yamaha 0.20 1 0.20 0.14

Pairwise comparison for Performance:

Honda Yamaha Suzuki Metro CI=

G.

Honda 1 3.00 2.00 0.20

AHP Score

Comfort Fuel Economy Value for Money Style Performance Score

H.

Yamaha 0.33 1 0.50 0.11

Honda 0.180781 0.187295 0.530085 0.187918 0.179132 0.35785473

Yamaha 0.628403 0.293165 0.264061 0.613946 0.497469 0.37975032

Suzuki 0.122118 0.412087 0.154481 0.129034 0.275146 0.20368077

Metro 0.068698 0.107453 0.051373 0.069102 0.048253 0.05871418

PV-F 0.047555 0.094433 0.504037 0.111559 0.242416

Final Choice

Yamaha YBR 125cc is best choice because it is more Comfortable and f uel Consumption is good. It also has a good Style and better performance. Selected Alternate: Honda CG125 may be the alternative choice.

pg. 3

I.

Cost/Benefit Graph

Alternate Honda Yamaha Suzuki Metro

Cost 106000 129900 132000 75600

Score 0.35785473 0.37975032 0.20368077 0.05871418

Cost/Benefit Graph 140000 120000 100000 80000 60000 40000 20000 0 0

J.

0.05

0.1

0.15

0.2

0.25

0.3

0.35

0.4

Discussion

It is very hard to take decision in daily life and we always get confused. We also don’t have clear image about the decision and key factors. By using these method for taking decision gives a better

direction for taking decision. It was hard to decide to choose a 125cc bike that is better in features and economically beneficial. By using AHP method we have all features scores and comparisons and we have clear image of all alternatives that helps us to take decisions.

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