A decision analysis framework for vendor selection in construction projects in greece

Pages248-261
Published date01 March 2009
Date01 March 2009
DOIhttps://doi.org/10.1108/JOPP-09-02-2009-B004
AuthorOdysseus Manoliadis,Ioannis E. Tsolas
Subject MatterPublic policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 9, ISSUE 2, 248-261 SUMMER 2009
A DECISION ANALYSIS FRAMEWORK FOR VENDOR SELECTION IN
CONSTRUCTION PROJECTS IN GREECE
Odysseus Manoliadis and Ioannis E. Tsolas*
ABSTRACT. The aim of the present paper is to model the vendor selection
process in construction projects in Greece. The applied approach involves a
multicriteria rating technique used for calculating a normalized economic bid
for the alternatives (i.e. vendors) by determining a proposed multiplier
coefficient. This technique uses two stage compromise programming
procurement criteria and weights according to the relevant legislative
framework for government procurement to provide a multicriteria value
score for each vendor. The application of the approach is demonstrated by
an illustrative example concerning the procurement of earthmoving
equipment (i.e. bulldozer). The primary advantage of this approach is that it
incorporates a degree of subjectivity into the evaluation process in
compliance with the existing legislative framework.
INTRODUCTION
The purchasing function is central to supply chain management
operations. The critical processes of the purchasing function include
supplier (vendor) selection, negotiation of supply contracts,
monitoring supplier performance, and acting as an interface between
an organization and its suppliers (Talluri & Sarkis, 2002). Within
these core processes of purchasing, this paper narrows its scope to
focus upon the supplier selection process based on the legislative
framework concerning government procurement in Greece.
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* Odysseus Manoliadis, Ph.D., is an Assistant Professor, Department of Civil
Engineering, Democritus University of Thrace, Greece. His research interests
are in the area of project management. Ioannis E. Tsolas, Ph.D., is a
Lecturer in Economic analysis, School of Applied Mathematics and Physics,
National Technical University of Athens, Greece. His teaching and research
interests are in microeconomics, macroeconomics analysis, and business
economics.
Copyright © 2009 by PrAcademics Press

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