A Fuzzy-Analytic-Hierarchical-Process Model for The Metal Decision in The Automotive Industry

Currently, the automobile industry faces increasing pressure to reduce the weight of vehicles in order to realize better fuel economy and reduced polluting emissions. Therefore, the long-term dominance of steel and iron as the main ferrous metals used in vehicles is about to change. Aluminum has become a prime candidate to replace steel. However, the decision to use steel or aluminum is a complex one, requiring a sophisticated decision model.

This paper generalizes and applies de Korvin and Kleyle's (1999) fuzzy-analytic-hierarchical- process (FAHP) model. This generalized FAHP model is a powerful tool to tackle many complex decisions without relying on limiting definitions or unrealistic assumptions. The paper uses a concrete illustration to simplify the intricate methodology of FAHP that should help managers and controllers apply this model.