Contractor selection in MCDM context using fuzzy AHP

Document Type : Research Paper

Authors

1 Associate Professor, Faculty of Management, University of Tehran, Iran

2 Professor, Faculty of Management Farabi Campus, University of Tehran, Iran

3 PHD candidate of financial management, Pardis Farabi college, university of Tehran, Iran

Abstract

Contractor selection is one of the most important problem in supply chain and its
strongly effect on firm`s performance. Because a significant amount of a
university`s budget assigns to construction contracts, contractor selection is an
important problem for the financial status of universities. Since Contractor selection
is a multi-criteria decision making problem (MCDM), lots of methods proposed to
face this problem. Selection is a broad comparison of contractors using a common
set of criteria and measures. Analytic hierarchy process (AHP) and other traditional
methods widely used for contractor and vendor selection by researches regarding to
lots linguistic variables and both qualitative and quantitative criteria and to tackle
ambiguous nature of contractor selection problem, although there is some
Insufficiency about them. In this article we use FAHP that is a fuzzy extension of
AHP to handle the fuzziness of the data involved in deciding the preferences of
different decision variables. The linguistic level of comparisons produced by experts
for each comparison is tapped in the form triangular fuzzy numbers to construct
fuzzy pairwise comparison matrices. We priorities Tehran university`s construction
contractor about each criteria and determine the best one about all of them.

Keywords

Interdisciplinary Journal of Management Studies
Volume 7, Issue 1 - Serial Number 1
Iranian Journal of Management Studies
January 2014
Pages 151-173

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