The combination of DEA and AHP approach in the selection of contractors participating in tenders

Abstract

Nowadays, the problem of contractor selection is one of the important activities in companies so that various methods in this area have been proposed up to now. One of the most popular and practical methods in this area is analytical hierarchy process, if in the case of the matter under surveying, the alternatives increased, this method will lose its efficiency and pair-wise comparison will become practically impossible by this method. In this paper with regard to many participant computer companies in service contracts, the method using combination of data envelopment analysis and analytical hierarchy process is proposed. In this research for ranking participant computer companies in service contracts, first, required criteria in contractor selection was determined then the weights of criteria using AHP Group method was determined. In this method, the linguistic terms are utilized to assess alternatives with respect to each criterion by using data envelopment analysis and Simple-Additive-Weighting method, contractor assessment was done, Finally, among the companies that with regard to last section had outrank, the shortlist was made and using AHP Group the weights of criteria with tendered price was calculated and the most appropriate contractors aim computer servicing was determined. Results indicate good past performance criterion have the biggest weight in the most appropriate contractor selection also in finally contractor selection criterions with tendered price must be assessment until the contractor that altogether outrank as contract winner will determined.