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Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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AHP

Transcribed Image Text:**Selecting the Ideal Hotel for a Convention**
Carol Latta is evaluating hotels in Los Angeles to choose a venue for a national convention of college business school teachers she represents. She is considering three hotels: the Cheraton, the Milton, and the Harriott. Her evaluation criteria include ambiance, location (considering safety and proximity to attractions and restaurants), and cost to the organization.
The following tables show her pairwise comparisons for her preferred hotels according to each criterion:
**Ambiance Comparison:**
| Hotel | Cheraton | Milton | Harriott |
|---------|----------|----------|----------|
| Cheraton| 1 | 1/2 | 1/5 |
| Milton | 2 | 1 | 1/3 |
| Harriott| 5 | 3 | 1 |
**Location Comparison:**
| Hotel | Cheraton | Milton | Harriott |
|---------|----------|----------|----------|
| Cheraton| 1 | 5 | 3 |
| Milton | 1/5 | 1 | 1/4 |
| Harriott| 1/3 | 4 | 1 |
**Explanation:**
- **Ambiance Table:**
- The values represent how each hotel is rated against the others concerning ambiance. For instance, the Cheraton is less preferred than both Milton and Harriott based on her scores.
- **Location Table:**
- This table evaluates the location advantages of each hotel. Here, the Cheraton is significantly more favored over Milton and Harriott in terms of location.
These pairwise comparisons give a structured method for Carol to decide on the best option based on her priorities and assessments.

Transcribed Image Text:### Evaluating Hotels for Meeting Venue Selection
#### Cost Comparison Table
This table presents a comparative analysis of three hotels based on cost. The hotels considered are Cheraton, Milton, and Harriott.
| Hotel | Cheraton | Milton | Harriott |
|---------|----------|--------|----------|
| Cheraton| 1 | 2 | 5 |
| Milton | 1/2 | 1 | 2 |
| Harriott| 1/5 | 1/2 | 1 |
- **Cheraton**: It is used as the baseline for comparison with values of 1 against itself, 2 against Milton, and 5 against Harriott.
- **Milton**: Costs are half as favorable compared to Cheraton and equivalent to 2 against Harriott.
- **Harriott**: Least cost-effective compared to both Cheraton and Milton.
#### Criterion Weighting Table
This table evaluates the different criteria impacting the decision: Ambiance, Location, and Cost.
| Criterion | Ambiance | Location | Cost |
|-----------|----------|----------|------|
| Ambiance | 1 | 2 | 4 |
| Location | 1/2 | 1 | 3 |
| Cost | 1/4 | 1/3 | 1 |
- **Ambiance**: Rated highest in importance with a value of 1 against itself, 2 over Location, and 4 over Cost.
- **Location**: Moderately important, with values of 1/2 for Ambiance and 1/3 for Cost.
- **Cost**: Considered least important, which can be seen from the lower comparative scores.
### Conclusion
The tables provided are part of a decision-making process using the Analytical Hierarchy Process (AHP) to develop an overall ranking of three hotels. This assessment will aid Carol Latta in deciding the most suitable venue for holding a meeting.
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