Contractor selection in MCDM context using fuzzy AHP

Abstract

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