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An analytical hierarchy process based procurement selection method

Author

Listed:
  • Sai-On Cheung
  • Tsun-Ip Lam
  • Mei-Yung Leung
  • Yue-Wang Wan

Abstract

Procurement selection continues to be topical, and several advanced studies have been reported. One of the key concerns of procurement selection is how to enhance objectivity. A selection method developed using multi-attribute utility technology (MAUT) and the analytical hierarchy process (AHP) is proposed. With the input of industrial experts, critical procurement selection criteria and procurement strategies commonly used in Hong Kong were identified. Against these criteria, utility factors corresponding to various procurement strategies were then assigned by the experts to create a utility factor table. To cater for individual project characteristics, the relative importance weightings of the selection criteria were assessed using the analytical hierarchy process. Final selection was then based on the highest utility value derived from the procurement strategies, taking into account the relative importance of the selection criteria. The use of the model is illustrated with actual data.

Suggested Citation

  • Sai-On Cheung & Tsun-Ip Lam & Mei-Yung Leung & Yue-Wang Wan, 2001. "An analytical hierarchy process based procurement selection method," Construction Management and Economics, Taylor & Francis Journals, vol. 19(4), pages 427-437.
  • Handle: RePEc:taf:conmgt:v:19:y:2001:i:4:p:427-437
    DOI: 10.1080/014461901300132401
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    References listed on IDEAS

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    1. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
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    Citations

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    Cited by:

    1. Per Erik Eriksson & Ossi Pesamaa, 2007. "Modelling procurement effects on cooperation," Construction Management and Economics, Taylor & Francis Journals, vol. 25(8), pages 893-901.
    2. Narasimhan, Ram & Talluri, Srinivas & Mahapatra, Santosh, 2008. "Effective response to RFQs and supplier development: A supplier's perspective," International Journal of Production Economics, Elsevier, vol. 115(2), pages 461-470, October.
    3. Franco Cheung & Judy Leung Fung Kuen & Martin Skitmore, 2002. "Multi-criteria evaluation model for the selection of architectural consultants," Construction Management and Economics, Taylor & Francis Journals, vol. 20(7), pages 569-580.
    4. Sai-On Cheung & Henry Suen, 2002. "A multi-attribute utility model for dispute resolution strategy selection," Construction Management and Economics, Taylor & Francis Journals, vol. 20(7), pages 557-568.

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