Comparing the Outcomes of Two Decision Support Models: The Analytical Hierarchy Process and Pugh Matrix Analysis : Using an actual multi-criteria decision-making situation

Abstract: Since businesses are constantly changing, making right decisions is a critical factor in order to achieve good results. In the thesis, two different decision support models are tested and the outcome is compared. This is done in cooperation with a company, Åmotfors Energi, who is facing a decision on how they can make use of their 30 GWh heat which they today do not have a paying customer for. Nine alternatives are used in the models and evaluated with seventeen different criteria. The purpose of this study is to compare and interpret the outcomes of two decision support models: the Analytical Hierarchy Process and Pugh Matrix Analysis. The purpose is also to investigate the main factors that influence the outcome of the models. The main research strategy was to use experimental design where three experts with various technical skills have scored the alternatives in both models. The alternatives have been carefully developed through an idea generation and idea selection phase. The results show that the models give different result when it comes to ranking the alternatives, both between the models and between the different experts. The empirical findings establish that the outcome from the models should be interpreted that the lowest scored alternatives can be eliminated for further research. The alternatives with the highest score should be further investigated before a decision could be made. Furthermore, what mainly affects the result is based on human factors.