The use of multiple factor decision models has been extensively studied in recent years. As a matter of fact, the traditional single criterion approach based on lowest cost is not supportive and robust enough because the qualitative factors are not concerned. Many decisions in operations management are multi-criteria to improve competitiveness for sustainable growth and development of an enterprise. The purpose of this dissertation is to review and assess the application of a well-known decision making methodology, called the analytic hierarchy process (AHP), in various important problems in operations management.
The articles are gathered and analyzed to answer the following research questions:
1. How AHP facilitate decision making in operations management?
2. Which function in company attracts most prevalent application?
3. What are opportunities for future research?
The organization of the present study is as follows: the next section highlights the AHP background and several works related to AHP literature review. Section 3 consists of research methodology while section 4 provides the classification. Section 5 discusses research review of applications in different company functions and suggestions for future research. Section 6 gives observations and discussions. Finally, Section 7 consists of conclusion and future work.

1. Abdi, M.R; Labib, A.W, A design strategy for reconfigurable manufacturing systems (RMSs) using analytical hierarchical process (AHP): a case study. International Journal of Production Research, 2003. 41: p. 2273-2299.
2. Abdi, M.R; Labib, A.W., Grouping and selecting products: the design key of Reconfigurable Manufacturing Systems (RMSs). International Journal of Production Research, 2004a. 42: p. 521-546.
3. Abdi, M.R; Labib, A.W., Feasibility study of the tactical design justification for reconfigurable manufacturing systems using the fuzzy analytical hierarchical process. International Journal of Production Research, 2004b. 42: p. 3055-3076.
4. Abdi, M.R., Fuzzy multi-criteria decision model for evaluating reconfigurable machines. International Journal of Production Economics, 2009. 117:p. 1-15.
5. Aguilar-Lasserre, A.A.; Bautista, M.A.B; Ponsich, A., et al., An AHP-based decision-making tool for the solution of multiproduct batch plant design problem under imprecise demand. Computer and Operations Research, 2009. 36: p. 711-736.
6. Akarte, M.M; Ravi, B., Casting product-process-producer compatibility evaluation and improvement. International Journal of Production Research, 2007. 45; p. 4917-4936.
7. Arslan, T.; Khisty, C.J., A rational approach to handling fuzzy perceptions in route choice. European Journal of Operations Research, 2006. 168: p. 571-583.
8. Ayag, Z., An integrated approach to evaluating conceptual design alternatives in a new product development environment. International Journal of Production Research, 2005. 43: p. 687-713.
9. Ayag, Z., A fuzzy AHP-based simulation approach to concept evaluation in a NPD environment. IIE Transaction, 2005. 37: p. 827-842.
10. Ayag, Z., A hybrid approach to machine-tool selection through AHP and simulation. International Journal of Production Research, 2007. 45: p. 2029-2050.
11. Badri, M.A., Combining the analytic hierarchy process and goal programming for global facility location-allocation problem. International Journal of Production Economics, 1999. 62: p. 237-248.
12. Badri, M.A., A combined AHP-GP model for quality control systems. International Journal of Production Economics, 2001. 72: p. 27-40.
13. Baramichai, M.; Zimmers, E.W.; Marangos, C.A., Agile supply chain transformation matrix: an integrated tool for creating an agile enterprise. Supply Chain Management – An International Journal, 2007, 12: p. 334-348.
14. Bertolini,.M.; Bevilacqua, M.; Braglia, M.; Frosolini, M., QUALITY AND RELIABILITY CORNER: An analytical method for maintenance outsourcing service selection. The International Journal of Quality & Reliability Management, 2004. 21: p. 772-789.
15. Bhattacharya, A.; Sarkar, B.; Mukherjee, S.K., Integrating AHP with QFD for robot selection under requirement perspective. International Journal of Production Research, 2005. 43: p. 671-3685.
16. Bhutta, K.S.; Huq, F., Supplier selection problem: A comparison of the total cost of ownership and analytic hierarchy process approaches. Supply Chain Management, 2002. 7: p.126-136.
17. Bititci, U.S.; Suwignjo, P.; Carrie, A.S., Strategy management through quantitative modelling of performance measurement systems. International Journal of Production Economics, 2001. 69: p. 15-22.
18. Buyukozkan, G.; Feyzioglu, O.; Nebol, E., Selection of the strategic alliance partner in logistics value chain. International Journal of Production Economics, 2008. 113: p. 148-158.
19. Chan, F.T.S.; Jiang, B.; Tang, N.K.H., The development of intelligent decision support tools to aid the design of flexible manufacturing systems. International Journal of Production Economics, 2000. 65: p. 73-84.
20. Chan, F.T.S., Interactive selection model for supplier selection process: an analytical hierarchy process approach. International Journal of Production Research, 2003. 41: p. 3549-3579.
21. Chan, F.T.S.; Chung, S.H.; Wadhwa, S., A heuristic methodology for order distribution in a demand driven collaborative supply chain. International Journal of Production Research, 2004. 42 : p. 1-19.
22. Chan, F.T.S.; Chung, S.H.; Wadhwa, S., A hybrid genetic algorithm for production and distribution. Omega, 2005. 33: p. 345-355.
23. Chan, F.T.S.; Kumar, N., Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega, 2007. 35: p. 417-431.
24. Chan, F.T.S.; Kumar, N.; Tiwari, M.K., et al., Global supplier selection: a fuzzy-AHP approach. International Journal of Production Research, 2008. 46: p. 3825-3857.
25. Chen, S.J.; Lin, L., Modeling team member characteristics for the formation of a multifunctional team in concurrent engineering. IEEE Transactions on Engineering Management, 2004. 51: p. 111-124.
26. Chen, Y.M.; Huang, PN, Bi-negotiation integrated AHP in suppliers selection
International Journal of Operations & Production Management, 2007. 27:p 1254-1274
27. Chiang, D.M.; Guo, R.S.; Pai, F.Y., Improved customer satisfaction with a hybrid dispatching rule in semiconductor back-end factories. International Journal of Production Research, 2008. 46: p. 4903-4923.
28. Chin, K.S.; Chiu, S.; Tummala, V.M.R., An evaluation of success factors using the AHP to implement ISO 14001-based EMS. The International Journal of Quality & Reliability Management, 1999.16: p. 341- 361.
29. Chin, K.S.; Yeung, I.K.; Pun, K.F, Development of an assessment system for supplier quality management. The International Journal of Quality & Reliability Management, 2006. 23: p. 743-767.
30. Chiou, H.K.; Tzeng, G.H.; Cheng, D.C., Evaluating sustainable fishing development strategies using fuzzy MCDM approach. Omega, 2005. 33: p. 223-234.
31. Cho, K.T.; Kwon, C.S., Hierarchies with dependence of technological alternatives: A cross-impact hierarchy process. European Journal of Operations Research, 2004. 156: p. 420-432.
32. Chougule, R.G.; Ravi, B., Variant process planning of castings using AHP-based nearest neighbour algorithm for case retrieval. International Journal of Production Research, 2005. 43: p. 1255-1273.
33. Dey, P.K., Decision support system for inspection and maintenance: A case study of oil pipelines. IEEE Transactions on Engineering Management, 2004. 51: p. 47-56.
34. Dey, P.K.; Hariharan, S.; Clegg, B.T., Measuring the operational performance of intensive care units using the analytic hierarchy process approach. International Journal of Operations & Production Management, 2006. 26: p. 849-865.
35. Dey, P.K., Integrated project evaluation and selection using multiple-attribute decision-making technique. International Journal of Production Economics, 2006. 103: p. 90-103.
36. Ferrari, P., A method for choosing from among alternative transportation projects. European Journal of Operations Research, 2003. 150: p. 194-203.
37. Fogliatto, F.S.; Albin, S.L., A hierarchical method for evaluating products with quantitative and sensory characteristics. IIE Transaction, 2001. 33: p. 1081-1092.
38. Forman, E.H; Saaty, T.L., Expert Choice. Decision Support System Software Co., Pittsburgh, PA, 1993.
39. Fu, H.P.; Ho, Y.C; Chen, R.C.Y, et al., Factors affecting the adoption of electronic marketplaces - A fuzzy AHP analysis. International Journal of Operations & Production Management, 2006. 26: p. 1301-1324.
40. Gol, H.; Catay, B., Third-party logistics provider selection: insights from a Turkish automotive company. Supply Chain Management – An International Journal, 2007. 12: p 379-384.
41. Golden, B.L., Harker, P.T., Wasil, E.A., Applications of the Analytic Hierarchy Process. Springer-Verlag, Berlin, 1989.
42. Greiner, M.A.; Fowler, J.W.; Shunk, D.L., et al., A hybrid approach using the analytic hierarchy process and integer programming to screen weapon systems projects. IEEE Transactions on Engineering Management, 2003. 50: p. 192-203.
43. Gungor, Z.; Arikan, F., Application of fuzzy decision making in part-machine grouping. International Journal of Production Economics, 2000. 63: p. 181-193.
44. Hafeez, K.; Zhang, Y.B.; Malak, N., Determining key capabilities of a firm using analytic hierarchy process. International Journal of Production Economics, 2002. 76: p. 39-51.
45. Hafeez, K.; Malak, N.; Zhang, Y.B., Outsourcing non-core assets and competences of a firm using analytic hierarchy process. Computer and Operations Research, 2007. 34: p. 3592-3608.
46. Handfield, R.; Walton, S.V.; Sroufe, R., et al., Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process. European Journal of Operations Research, 2002. 141: p. 70-87.
47. Ho W, Integrated analytic hierarchy process and its applications - A literature review. European Journal of Operational Research, 2008. 186: p. 211-228
48. Huang, C.C.; Chu, P.Y.; Chiang, Y.H., A fuzzy AHP application in government-sponsored R&D project selection. Omega, 2008. 36: p. 1038-1052.
49. Huang, C.T.; Yeh, T.M.; Lin, W.T., et al., A fuzzy AHP-based performance evaluation model for implementing SPC in the Taiwanese LCD industry. International Journal of Production Research, 2009. 47: p. 5163-5183.
50. Jung, H.W.; Choi, B.J., Optimization models for quality and cost of modular software systems. European Journal of Operations Research, 1999, 112: p. 613-619.
51. Kull, T.J.; Talluri, S., A supply risk reduction model using integrated multicriteria decision making. IEEE Transactions on Engineering Management, 2008. 55: p. 409-419.
52. Kahraman, C.; Cebeci, U.; Ruan, D., Multi-attribute comparison of catering service companies using fuzzy AHP: The case of Turkey. International Journal of Production Economics, 2004. 87: p 171-184.
53. Korpela, J.; Lehmusvaara, A.; Tuominen, M., An analytic approach to supply chain development. International Journal of Production Economics, 2001. 71: p. 145-155.
54. Korpela, J.; Lehmusvaara, A., A customer oriented approach to warehouse network evaluation and design. International Journal of Production Economics, 1999. 59: p. 135-146.
55. Korpela, J.; Lehmusvaara, A.; Tuominen, M., Customer service based design of the supply chain. International Journal of Production Economics, 2001. 69: p. 193-204.
56. Korpela, J.; Kylaheiko, K.; Lehmuswaara, A., et al., An analytic approach to production capacity allocation and supply chain design. International Journal of Production Economics, 2002. 78: p. 187-195.
57. Korpela, J.; Lehmusvaara, A.; Nisonen, J., Warehouse operator selection by combining AHP and DEA methodologies. International Journal of Production Economics, 2007. 108: p. 135-142.
58. Kengpol, A.; O'Brien, C., The development of a decision support tool for the selection of advanced technology to achieve rapid product development. International Journal of Production Economics, 2001. 69: p. 177-191.
59. Kengpol, A., Design of a decision support system to evaluate the investment in a new distribution centre. International Journal of Production Economics, 2004. 90: p 59-70.
60. Kengpol, A., Design of a decision support system to evaluate logistics distribution network in Greater Mekong Subregion Countries. International Journal of Production Economics, 2008. 115: p. 388-399.
61. Kwak, N.K.; Lee, C.W., Business process reengineering for health-care system using multicriteria mathematical programming. European Journal of Operations Research, 2002. 140: p. 447-458.
62. Kwak, N.K.; Lee, C.W.; Kim, J.H., An MCDM model for media selection in the dual consumer/industrial market. European Journal of Operations Research, 2005. 166: p. 255-265.
63. Kwong, C.K.; Bai, H., Determining the importance weights for the customer requirements in QFD using a fuzzy AHP with an extent analysis approach. IIE Transaction, 2003. 35: p. 619-626.
64. Lai, V.S.; Wong, B.K.; Cheung, W.M., Group decision making in a multiple criteria environment: A case using the AHP in software selection. European Journal of Operations Research, 2002. 137: p. 134-144.
65. Lee, A.H.I., A fuzzy AHP evaluation model for buyer-supplier relationships with the consideration of benefits, opportunities, costs and risks. International Journal of Production Research, 2009. 47: p. 4255-4280.
66. Lee, E.K.; Ha, S.; Kim, S.K., Supplier selection and management system considering relationships in supply chain management. IEEE Transactions on Engineering Management, 2001. 48: p. 307-318.
67. Lee, M.; Pham, H.; Zhang, X.M., A methodology for priority setting with application to software development process. European Journal of Operations Research, 1999. 118: p. 375-389.
68. Levary, R.R.; Wan, K., An analytic hierarchy process based simulation model for entry mode decision regarding foreign direct investment. Omega, 1999. 27: p. 661-677.
69. Levary, R.R., Ranking foreign suppliers based on supply risk. Supply Chain Management – An International Journal, 2007. 12: p. 392-394.
70. Lewis,W.G; Pun, K.F.; Lalla, T.R.M., Empirical investigation of the hard and soft criteria of TQM in ISO 9001 certified small and medium-sized enterprises. The International Journal of Quality & Reliability Management, 2006. 23: p. 964-987.
71. Li, J.Z.; Zhang, H.C.; Gonzalez, M.A., et al., A multi-objective fuzzy graph approach for modular formulation considering end-of-life issues. International Journal of Production Research, 2008, 46: p. 4011-4033.
72. Li, Q.; Sherali, H.D., An approach for analyzing foreign direct investment projects with application to China's Tumen River Area development. Computer and Operations Research, 2003. 30: p. 1467-1485.
73. Liberatore M. J., Nydick R. L, The analytic hierarchy process in medical and health care decision making: A literature review. European Journal of Operational Research, 2008. 89: p. 194-207.
74. Liu, L.B.; Berger, P.; Zeng, A., et al., Applying the analytic hierarchy process to the offshore outsourcing location decision. Supply Chain Management – An International Journal, 2008. 13: p. 435-449.
75. Liu, F.H.F.; Hai, H.L., The voting analytic hierarchy process method for selecting supplier. International Journal of Production Economics, 2005. 97: p. 308-317.
76. Lu, L.Y.Y.; Wu, C.H.; Kuo, T.C., Environmental principles applicable to green supplier evaluation by using multi-objective decision analysis . International Journal of Production Research, 2007. 45: p. 5451-5451.
77. Masella, C.; Rangone, A., A contingent approach to the design of vendor selection systems for different types of co-operative customer/supplier relationships.
International Journal of Operations & Production Management, 2000. 20: p 70-84.
78. Michnik, J.; Lo, M.C., The assessment of the information quality with the aid of multiple criteria analysis. European Journal of Operations Research, 2009. 195: p. 850-856.
79. Mikhailov, L., Fuzzy analytical approach to partnership selection in formation of virtual enterprises. Omega, 2002. 30: p. 393-401.
80. Min, H.K.; Melachrinoudis, E., The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study. Omega, 1999. 27: p. 75-85.
81. Muralidharan, C.; Anantharaman, N.; Deshmukh, S.G., Vendor rating in purchasing scenario: a confidence interval approach. International Journal of Operations & Production Management, 2001, 21: p. 1305-1325.
82. Naesens, K.; Gelders, L.; Pintelon, L., A swift response framework for measuring the strategic fit for a horizontal collaborative initiative. International Journal of Production Economics , 2009. 121: p. 550-561.
83. Noci, G.; Toletti, G., Selecting quality-based programmes in small firms: A comparison between the fuzzy linguistic approach and the analytic hierarchy process. International Journal of Production Economics, 2000. 67: p. 113-133.
84. Ozler, C.; Kocakoc, I.D.; Lu, A.K.S., Using analytic hierarchy process to determine process economics in multivariate loss functions. International Journal of Production Research, 2008. 46: p. 1121-1135.
85. Padillo, J.M.; Diaby, M., A multiple-criteria decision methodology for the make-or-buy problem. International Journal of Production Research, 1999. 37: p. 3203-3229.
86. Partovi, F.Y.; Burton, J.; Banerjee, A., Application of Analytical Hierarchy Process in Operations Management. International Journal of Operations & Production Management, 1990.10: p. 5-20.
87. Partovi, F.Y., An analytical model of process choice in the chemical industry. International Journal of Production Economics, 2007. 105: p. 213-227
88. Partovi, FY, An analytic model for locating facilities strategically. Omega, 2006. 34: p 41-55.
89. Rabelo, L.; Eskandari, H.; Shaalan, T., et al., Value chain analysis using hybrid simulation and AHP. International Journal of Production Economics, 2007. 105: p. 536-547.
90. Ramanathan, R., Supplier selection problem: integrating DEA with the approaches of total cost of ownership and AHP. Supply Chain Management – An International Journal, 2007. 12: p. 258-261.
91. Rao, R.V.; Parnichkun, M., Flexible manufacturing system selection using a combinatorial mathematics-based decision-making method. International Journal of Production Research, 2009. 47: p. 6981-6998.
92. Saaty, T.L., The Analytical Hierarchy Process. McGraw-Hill, New York, 1980
93. Saaty, T.L., Fundamentals of Decision Making and Priority Theory with the Analytic Hierarchy Process. RWS Publication, Pittsburgh, PA, USA, 1994.
94. Saaty, T.L. and Vargas L.G., Decision Making in Economic, Political, Social, and Technologycal Environments with the Analytic Hierarchy Process. RWS Publication, Pittsburgh, PA, USA, 1994.
95. Saaty T.L, Decisions Making for Leaders: The Analytic Hierarchy Process for Decisions in a Complex World, RWS Publications, Pittsburgh, 1995.
96. Sharma, S.; Agrawal, N., Selection of a pull production control policy under different demand situations for a manufacturing system by AHP-algorithm. Computer and Operations Research, 2009. 36: p. 1622-1632.
97. Sevkli, M.; Koh, S.C.L.; Zaim, S., et al., An application of data envelopment analytic hierarchy process for supplier selection: a case study of BEKO in Turkey. International Journal of Production Research, 2007, 45: p. 1973-2003.
98. Sloane, E.B.; Liberatore, M.J.; Nydick, R.L., et al., Using the analytic hierarchy process as a clinical engineering tool to facilitate an iterative, multidisciplinary, microeconomic health technology assessment. Computer and Operations Research, 2003. 30: p. 1447-1465.
99. Steuer R. E., Na P., Multiple criteria decision making combined with finance: A categorized bibilographic study. European Journal of Operational Research, 2003. 150: p. 496-515.
100. Suwignjo, P.; Bititci, U.S.; Carrie, A.S., Quantitative models for performance measurement system. International Journal of Production Economics, 2000. 64: p. 231-241.
101. Tam, M.C.Y; Tummala, V.M.R., An application of the AHP in vendor selection of a telecommunications system. Omega, 2001. 29: p. 171-182.
102. Ting, S.G.; Cho, D.I., An integrated approach for supplier selection and purchasing decisions. Supply Chain Management – An International Journal, 2008. 13: p. 116-127.
103. Tolga, E.; Demircan, M.L.; Kahraman, C., Operating system selection using fuzzy replacement analysis and analytic hierarchy process. International Journal of Production Economics, 2005. 97: p. 89-117.
104. Tsai, W.H.; Hung, S.J., Dynamic pricing and revenue management process in Internet retailing under uncertainty: An integrated real options approach. Omega, 2009. 37 p: 471-481.
105. Tseng, F.M.; Chiu, Y.J.; Chen, J.S., Measuring business performance in the high-tech manufacturing industry: A case study of Taiwan's large-sized TFT-LCD panel companies. Omega, 2009. 37: p. 686-697.
106. Vaidya O. S, Kumar S., Analytic hierarchy process: An overview of applications. European Journal of Operational Research 2006.169: p. 1-29.
107. Vargas, Luis G., An Overview of the Analytic Hierarchy Process and Its Applications. European Journal of Operational Research, 1990. 48: p. 2-8.
108. Wang, G.; Huang, S.H.; Dismukes, J.P., Product-driven supply chain selection using integrated multi-criteria decision-making methodology. International Journal of Production Economics, 2004. 91: p. 1-15.
109. Wang, J.J.; Yang, D.L., Using a hybrid multi-criteria decision aid method for information systems outsourcing. Computer and Operations Research, 2007. 34: p. 3691-3700.
110. Wang, K.M.; Wang, C.K.; Hu, C., Analytic hierarchy process with fuzzy scoring in evaluating multidisciplinary R&D projects in China. IEEE Transactions on Engineering Management, 2005. 52: p. 119-129.
111. Wang, L.; Chu, J.; Wu, J., Selection of optimum maintenance strategies based on a fuzzy analytic hierarchy process. International Journal of Production Economics, 2007. 107: p. 151-163.
112. Wang, T.C.; Chang, T.H., Application of consistent fuzzy preference relations in predicting the success of knowledge management implementation. European Journal of Operations Research, 2007. 182: p. 1313-1329.
113. Wang, Y.M.; Chin, K.S.; Leung, J.P.F., A note on the application of the data envelopment analytic hierarchy process for supplier selection. International Journal of Production Research, 2009, 47: p. 3121-3138.
114. Water, H.V.D.; Vries J.D., Choosing a quality improvement project using the analytic hierarchy process. The International Journal of Quality & Reliability Management, 2006. 23: p. 409-427.
115. Xia, W.J.; Wu, Z.M., Supplier selection with multiple criteria in volume discount environments. Omega, 2007. 35: p. 494-504.
116. Xu, S.Y.; Xu, L.D.; Chen, X.F., Determining optimum edible films for kiwifruits using an analytical hierarchy process. Computer and Operations Research, 2003. 30: p. 877-886.
117. Yang, D.H.; Kim, S.; Nam, C., et al., Developing a decision model for business process outsourcing. Computer and Operations Research, 2007. 34: p 3769-3778.
118. Yang, T.H.; Su, C.T.; Hsu, Y.R., Systematic layout planning: a study on semiconductor wafer fabrication facilities. International Journal of Operations & Production Management, 2000. 20: p. 1360-1372.
119. Yang, T.H.; Kuo, C.W., A hierarchical AHP/DEA methodology for the facilities layout design problem. European Journal of Operations Research, 2003. 147: p. 128-136.
120. Yurdakul, M.; Ic, Y.T., AHP approach in the credit evaluation of the manfuacturing firms in Turkey. International Journal of Production Economics, 2004. 88: p. 269-290.
121. Yurdakul, M.; Ic, Y.T., Development of a performance measurement model for manufacturing companies using the AHP and TOPSIS approaches. International Journal of Production Research, 2005. 43: p. 4609-4641.
122. Zakarian, A.; Kusiak, A., Forming teams: an analytical approach. IIE Transaction, 1999. 31: p. 85-97.