AHP as a strategic decision-making tool to justify machine tool selection

Machine tool selection has strategic implications that contribute to the manufacturing strategy of a manufacturing organization. In such a case, it is important to identify and model the links between machine tool alternatives and manufacturing strategy. This study presents such a strategic justification tool for machine tools. With the new strategic justification tool, the evaluation of investment in machine tools can model and quantify strategic considerations. AHP and ANP are applied in calculation of the contributions of machine tool alternatives to the manufacturing strategy of a manufacturing organization. Hierarchical decision structures are formed in the application of the AHP and ANP approaches. Ranking scores which are used to rank the alternatives are obtained as outcomes of the applications. Application of the ANP approach also enabled the incorporation of interdependencies among the components of decision structures. An illustrative example is provided. The company management found the application and results satisfactory and implementable in their machine tool selection decisions. (C) 2003 Elsevier B.V. All rights reserved.