Application of Multiple Attribute Decision-Making (MADM) and Analytical Hierarchy Process (AHP) Methods in the Selection Decisions for a Container Yard Operating System

Abstract

This study examines and evaluates important parameters in container yard operating systems. The objective of this study is to set up a basis for decision-making to select the best scenario among other options. It examines the important attributes determined using a multiple attribute decision-making (MADM) method. The MADM method is suited to the study of complex problems and allows the consideration of qualitative attributes expressed in linguistics terms and quantitative attributes illustrated in financial and throughput measures in container terminals. An analytical hierarchy process (AHP) technique is employed for solving the MADM problems. The AHP and principal eigenvector weighting techniques have been proposed in this study as weighting tools because they allow decomposition of a decision problem into a hierarchical order and enable a pair-wise comparison of the attributes with an acceptable level of consistency. The analysis assures that both qualitative and quantitative aspects of the decision are incorporated into the process. The results obtained from this study may be used to develop a basis for pair-wise comparison, judgment and selection of the best container yard operation option for the purpose of this study. For the first time, this study proposes the application of MADM and AHP for selection decisions in container terminals.