Developing a multi-attribute decision aid model for selection of a weather radar supplier
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Developing a multi‑attribute decision aid model for selection of a weather radar supplier Amaury Caruzzo1 · Cintia Maria Rodrigues Blanco2 · Paul Joe3
© Springer Science+Business Media, LLC, part of Springer Nature 2020
Abstract Selecting a supplier for highly technical and expensive equipment as a weather radar is a very demanding process and a critical management task for procurement team. For such problems, the use of multiple criteria analysis is welcome. This paper introduces a decision aid model for weather radar supplier selection using a multi-attribute approach for public purchase procedures. As a model application, we developed the framework on a real public procurement to expand the weather radar network in Brazil, where two attributes were in conflict (cost and technical). The proposed model was demonstrated to be very useful in understanding the trade-off between cost and technical attributes, based on the stakeholders’ preferences. The model also supported the decision-maker in the negotiation process to receive better commercial or technical proposals from the buyers’ perspective. Based on these findings, it is advocated that for highly specialised equipment, a single attribute method centred on the lowest-cost bid is no longer supportive and robust enough in contemporary supplier selection. Modelling a multi-attribute decision process could also be a guide to improve interaction with expert and management teams in future weather radar selection evaluations. Keywords Multi-criteria decision model · Decision analysis · Supplier selection · Public procurement · Environmental applications
1 Introduction Supplier selection is one of the most critical activities for organisations and usually based on cost (Ho et al. 2010). In a real-world problem, the supplier selection is a complex task with many hidden assumptions, and the stakeholders would only use a support tool if they understand the decision model (Roy 1993; Katsikopoulos et al. 2018). The decision aid model needs to be (stepwise) simpler and transparent, but at the same time, it must be scientifically consistent * Amaury Caruzzo [email protected] 1
Department of Atmospheric & Oceanic Sciences, McGill University, Burnside Hall, 805 Sherbrooke Street West, Montreal, QC H3A0B9, Canada
2
Département de Mathématiques et de Génie Industriel, Polytechnique Montréal, 2500, chemin de Polytechnique, Montreal, QC H3T1J4, Canada
3
Cloud Physics and Severe Weather Section, Environment and Climate Change Canada, 4905 Dufferin Street, Toronto, ON M3H5T4, Canada
(Caruzzo et al. 2016; Wong-Parodi and Small 2020). In public procurement (or a Request for Proposal), this is particularly important because the budget is public, and the process must be clear and transparent for society (Bana-e-Costa et al. 2002; Kurth et al. 2017). Several researchers have recently highlighted the strategic importance of the supplier selection process for organisations, such as budgetary planning (Nikou et al. 2017), order allocation (Park et al. 2018), or p
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