Contractor selection in MCDM context using fuzzy AHP

Contractor selection is one of the most important problem in supply chain and itsstrongly effect on firm`s performance. Because a significant amount of auniversity`s budget assigns to construction contracts, contractor selection is animportant problem for the financial status of universities. Since Contractor selectionis a multi-criteria decision making problem (MCDM), lots of methods proposed toface this problem. Selection is a broad comparison of contractors using a commonset of criteria and measures. Analytic hierarchy process (AHP) and other traditionalmethods widely used for contractor and vendor selection by researches regarding tolots linguistic variables and both qualitative and quantitative criteria and to tackleambiguous nature of contractor selection problem, although there is someInsufficiency about them. In this article we use FAHP that is a fuzzy extension ofAHP to handle the fuzziness of the data involved in deciding the preferences ofdifferent decision variables. The linguistic level of comparisons produced by expertsfor each comparison is tapped in the form triangular fuzzy numbers to constructfuzzy pairwise comparison matrices. We priorities Tehran university`s constructioncontractor about each criteria and determine the best one about all of them.

Keywords:

Analytic Hierarchy Process , Contractor selection , fuzzy set theory , multi-criteria decision making problem