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-Projects Comparison Matrix for the Return On Investment Criterion

-Projects Comparison Matrix for the Return On Investment Criterion

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The objective of this paper is to present, discuss and apply the principles and techniques of the Analytic Hierarchy Process (AHP) in the prioritization and selection of projects in a portfolio. AHP is one of the main mathematical models currently available to support the decision theory. When looking into how organizations decide over which projec...

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... Areas of higher elevation were examined for their potential to offer natural drainage, thereby diminishing the likelihood of waterlogging and accumulation of leachate, thus bolstering the overall stability of landfill operations over time because separation of comparatively high elevation areas subtracted to find out low-lying areas subjectively necessitating suitable site finding process. Conversely, lower-lying areas were scrutinized for their susceptibility to flooding and fluctuations in the water table, which could heighten the risk of contamination and disruption to the local ecology [26,77]. Shallow water depth areas are considered less suitable for landfilling, as they pose a higher risk of contamination. ...
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... A systematic but practical tool is needed to help make rational decisions. One of the most effective methods that help address complex decisionmaking is the analytic hierarchy process (AHP) (Andalecio 2010;Vargas 2010;Jagoda et al. 2020). ...
... The method known as AHP has caught the interest of many academics, due to its good mathematical nature and the ease with which the essential input data may be obtained [15]. Its simplicity is defined by comparing alternative pairs based on specific criteria [16]. Furthermore, the emergence of various software tools has popularized and simplified this procedure. ...
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... The AHP method has piqued the interest of numerous researchers, mainly due to its sound mathematical nature and the fact that the required input data is relatively easily obtainable [5]. Its simplicity is marked by comparing pairs of alternatives according to specific criteria [6]. Furthermore, this method has gained popularity and is user-friendly due to the development of various software programs. ...
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... El procedimiento de valoración se realizó por pares según la jerarquía 1-9 propuesta por (Saaty, 1977), donde 1 representa que ambos criterios o elementos son igual de importantes sobre la problemática de decisión y 9 considera que cada uno de los elementos comparados es absolutamente más importante; mientras que los números pares representan una diferencia razonable entre los elementos comparados y los impares representan una negociación entre estos (Celemín, 2014;Vargas, 2010). ...
... The Analytic Hierarchy Process (AHP), developed by Thomas L. Saaty (Saaty, T.L., 2008;Arnold F. Shapiro et al., 2017), provides a structured approach to complex decision-making by hierarchically organizing choices into goals, criteria, sub-criteria, and alternatives through pairwise comparisons using a defined scale (Saaty, T.L., 2008;Arnold F. Shapiro et al., 2017;Jagdish Bhadu et al., 2023;Vargas et al., 2010) (table 4). ...
... lement Cij signifies the relative importance of criterion Ci compared to criterion Cj. Notably, the reverse relationship is true for Cji, and for cases where i and j are not equal (i ∕ = j), Cii is equivalent to 1, ensuring consistency in the comparisons (Saaty, T.L., 2008;Sunah Moon, 2020;Arnold F. Shapiro et al., 2017;Jagdish Bhadu et al., 2023.;Vargas et al., 2010;Julio Benítez et al., 2011). ...
... To evaluate the matrix's coherence, AHP employs a consistency index that involves calculating the Eigenvalue and Eigenvector of the matrix (Equation 2) (Saaty, T.L., 2008; Sunah Moon, 2020; Arnold F. Shapiro et al., 2017;Jagdish Bhadu et al., 2023.;Vargas et al., 2010;Julio Benítez et al., 2011). ...
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... For each driver of the Analytical Hierarchical Process (AHP) (Vargas, 2010 andSaaty andThomas L., 2003) was generated a proper factor, on the basis of a weighting for those qualities before mentioned across the archaeological park. Equal importance Two factors contribute equally to the objective 3 ...
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... AHP was developed in the 1970s by Thomas L. Saaty and has been studied extensively since then. It is currently applied for decision-making in several complex scenarios (Vargas, 2010). The use of AHP begins by decomposing the problem into a hierarchy of criteria that are more easily analyzed and independently comparable. ...
... This comparison can use concrete data from alternatives or human judgments as underlying information (Saaty, 2008). According to Vargas (2010), AHP transforms comparisons, often empirical, into numerical values processed and compared. The weight of each factor allows the estimation of each of the elements within the defined hierarchy. ...
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... The risk factors that are configurable are assigned weights by employing the AHP [75][76][77][78][79][80][81][82][83], which is one of the most commonly used multi-criteria decision-making (MCDM) methods for computing weights of factors involved in decision making. MCDM [81,[84][85][86][87] is used when a decision involves taking multiple criteria into account in order to rank or choose between the alternatives. ...
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... This normalization is done by dividing each coefficient in the matrix by the sum of the coefficients in the corresponding column. After normalization, the arithmetic mean of the values in each row of the resulting matrix is considered as an approximate value of the eigenvector, which corresponds to the relative weight of each indicator (Vargas, 2010). ...
... According to Vargas (2010), the AHP process has characteristics that ensure the consistency of its results. To verify the consistency of the weights assigned to the criteria and alternatives, the inconsistency index (λmax), the consistency index (CI), and the consistency ratio (CR) are calculated, according to equations 1, 2, and 3, respectively: (2005) The inconsistency index (λmax) measures the difference between the largest eigenvalue and the number of indicators, while the consistency index (CI) measures the ratio between the inconsistency index and a consistent random index (RI), which varies between 0 and 1. ...
... To verify the consistency of the weights assigned to the criteria and alternatives, the inconsistency index (λmax), the consistency index (CI), and the consistency ratio (CR) are calculated, according to equations 1, 2, and 3, respectively: (2005) The inconsistency index (λmax) measures the difference between the largest eigenvalue and the number of indicators, while the consistency index (CI) measures the ratio between the inconsistency index and a consistent random index (RI), which varies between 0 and 1. The consistency ratio (CR) is the ratio between the consistency index (CI) and the consistent index for the number of indicators used (CI), which also varies between 0 and 1. CR values above 0.1 indicate acceptable consistency, while values below 0.1 indicate inconsistency in the results (Vargas, 2010). The value of RI is a fixed value for a given number of evaluated indicators, n, according to Table 3 (generic). ...
Book
In recent years, the world of Civil Engineering has been changing considerably (Liu et al., 2017; Zhou et al., 2020). Within the many obstacles, barriers, and opportunities, significant challenges should be considered for the future of the Civil Engineering, with the contribution of Geoinformatics, several scientific areas associated with Civil Engineering experience rapid technological evolution (Baig et al., 2022; Lousada, Cabezas, et al., 2022; Ray et al., 2023). Thus, evolution is related to several areas, such as structures, civil constructions, geotechnics, foundations, hydraulics, communication routes, regional and urban planning, sustainability, climate change and environmental impact, among others (Chau et al., 2015; Govindan et al., 2016; Han & Thakur, 2015; Jensen, 2020). Considering these challenges, we can work to portray the future of Civil Engineering. Civil engineering has been greatly influenced by the evolution of Urban Politics and Geoinformatics, as these two fields have had a significant impact on the design, planning, and management of urban infrastructure (Bernhäuserová et al., 2022; Dilworth, 2020; Pineo et al., 2020). Urban Politics has played a vital role in shaping the development of cities and urban areas (Robinson, 2016). Political decisions made at the local, regional, and national levels have a significant impact on the design and construction of infrastructure projects (Lieberman, 2002; Lousada, Cabezas, et al., 2022). Civil engineers must consider the political environment in which they operate, as well as the political priorities of elected officials and policymakers, when designing and implementing infrastructure projects (Fang et al., 2023; Jensen, 2020; Ray et al., 2023). Geoinformatics, which involves the collection, analysis, and interpretation of geospatial data, has also had a significant impact on Civil Engineering. Geoinformatics technologies such as geographic information systems (GIS) and remote sensing have revolutionized the way that civil engineers plan and design infrastructure projects. These tools allow engineers to gather and analyze a vast amount of spatial data, which can be used to optimize infrastructure designs and improve the efficiency of construction and maintenance activities (Lousada et al., 2021; Lousada, Gonçalves, et al., 2022; Lousada & Castanho, 2022). Geoinformatics, also known as Geographic Information Systems (GIS), is a powerful tool for supporting Urban Politics and Civil Engineering development. GIS is a computer-based system that integrates various types of geographic data, such as maps, satellite imagery, and demographic information, to analyze, visualize, and interpret spatial relationships (Baig et al., 2022; Ray et al., 2023; Singh et al., 2011). In the context of Urban Politics, GIS can be used to support decision-making processes related to land-use planning, transportation, and infrastructure development. For example, GIS can be used to analyze the spatial distribution of population density, income levels, and transportation networks to identify areas that are underserved by public transportation. This information can then be used to guide the development of new transportation routes or to prioritize the allocation of resources for infrastructure development (Dilworth, 2020; Lieberman, 2002; Robinson, 2016). In the field of Civil Engineering, GIS can be used to support the design and construction of buildings, roads, bridges, and other infrastructure. GIS can be used to analyze the suitability of different sites for construction projects, taking into account factors such as topography, soil type, and environmental conditions. GIS can also be used to monitor construction progress and to identify potential risks or hazards (Chau et al., 2015; Kotis et al., 2023; Lousada et al., 2021; Lousada, Gonçalves, et al., 2022). Overall, Geoinformatics is a valuable tool for supporting Urban Politics and Civil Engineering development. By providing a comprehensive and integrated view of geographic data, GIS can help decisionmakers to make more informed and effective decisions, leading to more sustainable and resilient urban environments (Lieberman, 2002; Ray et al., 2023).