MULTI-CRITERIA METHODS AND MODELS FOR DECISION MAKING IN PUBLIC PROCUREMENT

Ivana Veselinović

DOI Number
-
First page
261
Last page
279

Abstract


Selection of the best supplier in the public procurement process is a typical example of a multi-criteria decision making problem. The purpose of this paper is to present possible approaches for weights determination in order to facilitate decision making in the public procurement process. Considering the fact that criteria weights can affect the final ranking of the alternatives it is very important to access the process of weights assigning with seriousness and responsibility. Adequately estimated weights reduce the possibility of abuse and fraud in the public procurement system. Determination of weights is done based on a subjective approach (Analytic Hierarchy Process).

Key Words: Supplier selection, Analytic Hierarchy Process, Multi-criteria decision making, Public procurement, Criteria Weights.

Full Text:

PDF

References


Afshari, A., Mojahed, M., Yusuff, R. M. (2010) Simple Additive Weighting approach to Personnel Selection problem, International Journal of Innovation, Management and Technology, 1 (5): 511-515

Ali, A., Tahriri, F., Osman M. R., Yusuff R. M. (2008) A review of supplier selection methods in manufacturing industries, Suranaree Journal of Science and Technology 15 (3): 201-208

Behzadian M., Otaghsara, K., Yazdani, M., Ignatius, J. (2012) A state-of-art survey of TOPSIS applications, Expert Systems with Applications, An International Journal, 39 (17): 13051-13069

Benyoucef, M., Canbolat, M. (2007) Fuzzy AHP-based supplier selection in e-procurement, International Journal of Services and Operations Management, 3 (2): 172-192

Boran, F. E., Gença, S., Kurtb, M., Akay, D. (2009) A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method, Expert Systems with Applications, 36 (8): 11363-11368

Cheng, E. W. L., Li, H. (2004) Contractor selection using the analytic network process, Construction Management and Economics, 22: 1021-1032

Cheung, S.-O., Lam, T.-I., Leung, M.-Y., Wan, Y.-M. (2001) An analytical hierarchy process based procurement selection method, Construction Management and Economics, Volume 19 (4): 427-437

Chou, S.-Y., Chang, Y.-H. & Shenc, C.-Y. (2008) A fuzzy simple additive weighting system under group decision-making for facility location selection with objective/subjective attributes, European Journal of Operational Research, Volume 189 (1): 132-145

Cook, R. L., Stewart, T. R. (1975) A Comparison of Seven Methods for Obtaining Subjective Descriptions of Judgmental Policy, Organizational Behavior and Human Performance, Volume 13 (1): 31-45

Cupic, M., Tummala, R., Suknović, M. (2003), Decision making: a formal approach (in Serbian), Belgrade, Faculty of Organizational Sciences

De Boer L., Labrob E., Morlacchi P. (2001). A review of methods supporting supplier selection, European Journal of Purchasing & Supply Management, Volume 7 (2): 75-89

De Boer L., van der Wegen L., Telgen J. (1998) Outranking methods in support of supplier selection, European Journal of Purchasing & Supply Management, Volume 4 (2–3): 109-118

Dulmin, R., Mininno, V. (2003) Supplier selection using a multi-criteria decision aid method, Journal of Purchasing and Supply Management, Volume 9 (4): 177-187

Figueira, J., Greco, S., Ehrgott M. (2005) Multiple Criteria Decision Analysis: State of the Art Surveys, Boston: Springer Series: International Series in Operations Research & Management Science, Volume 78 (36): 3-24

Haq, N., & Kannan, G. (2006) Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model, The International Journal of Advanced Manufacturing Technology, Volume 29 (7-8): 826-835

Hsieha, T.-Y., Lub, S.-T., Tzeng, G.-H. (2004) Fuzzy MCDM approach for planning and design tenders selection in public office buildings, International Journal of Project Management, Volume 22 (7): 573-584

Hwang C.-L., Yoon K.P. (1995), Multiple Attribute Decision Making: An Introduction, Sage Publications, USA

Jankovic-Milic V., Stankovic J. (2010), Bayesian approach to multicriteria decision analysis in business decision making (in Serbian), Vrnjacka Spa

Jaskowski, P., Biruk, S., Bucon, R. (2010). Assessing contractor selection criteria weights with fuzzy AHP method application in group decision environment, Automation in Construction, Volume 19 (2): 120-126

Kahraman, C., Cebeci, U., Ulukan, Z., (2003) Multi-criteria supplier selection using fuzzy AHP, Logistics Information Management, Volume 16 (6): 382-394

Lin, H. Y., Liao, C. J. & Chang, Y. H. (2010), Applying fuzzy simple additive weighting system to health examination institution location selection, Industrial Engineering and Engineering Management (IE&EM), IEEE 17th International Conference, 29-31 Oct. 2010, Xiamen: 646-650

Lofti, F.L., Fallahnejad, R. (2012) Imprecise Shannon's Entropy and Multi Attribute Decision Making, Entropy. 2010, Volume 12(1): 53-62

Maggie C.Y.T. & Tummala, V.M.R. (2001). An application of the AHP in vendor selection of a telecommunications system, Omega, Volume 29 (2): 171-182

Milicevic, M. R, Zupac G. Z. (2012), Subjective approach to determination of the criteria weights (in Serbian), Military Technical Courier (in Serbian), Volume 60 (2): 48-70

Milic, M.R., Zupac, G.Z. (2012) An objective approach to determination of the criteria weights (in Serbian), Military Technical Courier (in Serbian), Volume 60 (1): 39-56

Haq, N., & Kannan, G. (2006) Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model, The International Journal of Advanced Manufacturing Technology, Volume 29 (7-8): 826-835

Pavlicic, D. (2002). Consistency of selection of multi-attribute analysis methods (in Serbian), Economic annals (in Serbian), 155: 59-82

Paul Yoon K. & Hwang, C. L. (1981), Multiple attribute decision making methods and applications: A state-of-the-art survey, Lecture Notes in Economics and Mathematical Systems, Berlin: Springer-Verlag

Popović, Ž., Stanković, J., Veselinović, I. (2013) Multi-criteria analysis application in the investment projects assessment, FACTA UNIVERSITATIS, Series: Economics and Organization Volume 10 (4): 401 - 418

Serbian Public Procurement Law,

http://www.parlament.gov.rs/upload/archive/files/cir/pdf/zakoni/2012/4113-12.pdf (21.07.2014)

Serbian Public Procurement Office, Strategy of Public Procurement Development in the Republic of Serbia (in Serbian), http://www.ujn.gov.rs/sr.html (12.08.2014)

Srdjevic, B., Medeiros, Y. D. P., Faria A. S., Schaer, M. (2003). Objective evaluation of performance criteria for the system of accumulations (in Serbian), Water management (in Serbian), 35: 163-179

Soreide, T. (2002) Corruption in public procurement. Causes, consequences and cures, Chr. Michelsen Institute, http://hdl.handle.net/10202/185 (10.08.2014)

Triantaphillou, E. (2000), Multi-criteria decision making methods: A comparative study. Dordrecht, itd: Kluwer

Torra, V., Yasuo N. (2007), Modeling Decisions. Berlin: Springer-Verlag

Tzeng, G.-H., Huang, J.-J. (2011), Multiple Attribute Decision Making: Methods and Applications, Chapman and Hall/CRC

Tzeng, G.-H, Yanga, J. L., Chiub, H. N., Yeh, R. H. (2008) Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships, Information Sciences, Volume 178 (21): 4166-4183

Varinac S. (2012) Corruptional map of public procurements in Republic of Serbia (in Serbian), Belgrade, http://www.ujn.gov.rs/sr.html (15.07.2014)

Weber, C. A., Ellram, L. M., (1993) Supplier Selection Using Multi-objective Programming: A Decision Support System Approach, International Journal of Physical Distribution & Logistics Management, Volume 23 (2): 3-14

Zeleny M. (1982) Multiple Criteria Decision Making, New York: McGraw-Hill

Zopounidis, C., Doumpos, M. (2002) Multi-criteria Decision Aid in Financial Decision-Making: Methodologies and Literature Review, Journal of Multi-Criteria Decision Analysis, Special Issue: MCDA Methodologies in Finance, Volume 11 (4-5): 167-186


Refbacks

  • There are currently no refbacks.


© University of Niš, Serbia
Creative Commons License CC BY-NC-ND
ISSN 0354-4699 (Print)
ISSN 2406-050X (Online)