Multi-criteria decision support methods for the selection of the optimum contractor: A case study of a passenger transfer centre
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Vol. 8 No. 2 (2023)
Abstract
Purpose: The main purpose of the paper is to apply the TOPSIS method for selecting the optimal contractor for a passenger transfer center.
Methodology: The methodology is based on the use of TOPSIS, which determines the distance of decision alternatives from the ideal and anti-ideal solutions using evaluation criteria.
Results: Two different contractor rankings were obtained depending on the weights of the criteria. With equal weights, the best contractor is number 5, while with weights determined by formula (8), the best is number 4.
Theoretical Contribution: The paper contributes to the field of investment project management by demonstrating how the TOPSIS method can aid in decision-making for optimal contractor selection, thereby reducing the risk of erroneous decisions.
Practical Implications: The practical implications of this research are significant for investment projects, as the demonstrated methodology can be directly applied to the contractor selection process, potentially leading to more successful project outcomes.
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References
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Bojkovic, N., Anic, I., & Pejcic-Tarle, S. (2010). One solution for cross-country transport-sustainability evaluation using a modified ELECTRE method. Ecological Economics, 69(5), 1176–1186.
Bouayad-Agha, S., Turpin, N., & Védrine, L. (2013). Fostering the Development of European Regions: A Spatial Dynamic Panel Data Analysis of the Impact of Cohesion Policy. Regional Studies, 47(9), 1573–1593. https://doi.org/10.1080/00343404.2011.628930
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Çelen, A. (2014). Comparative Analysis of Normalisation Procedures in TOPSIS Method: With an Application to Turkish Deposit Banking Market. Informatica, 25(2), 185–208. https://doi.org/10.15388/Informatica.2014.10
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Chamodrakas, I., Alexopoulou, N., & Martakos, D. (2009). Customer evaluation for order acceptance using a novel class of fuzzy methods based on TOPSIS. Expert Systems with Applications, 36(4), 7409–7415. https://doi.org/10.1016/J.ESWA.2008.09.050
Chan, F. T. S., & Kumar, N. (2007). Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega, 35(4), 417–431. https://doi.org/10.1016/j.omega.2005.08.004
Chu, T. C. (2002). Facility location selection using fuzzy TOPSIS under group decisions. International journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 10(06), 687-701. https://doi.org/10.1142/S0218488502001739
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Ertuǧrul, I., & Karakaşoǧlu, N. (2008). Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection. International Journal of Advanced Manufacturing Technology, 39(7–8), 783–795. https://doi.org/10.1007/S00170-007-1249-8
Farahani, R. Z., & Asgari, N. (2007). Combination of MCDM and covering techniques in a hierarchical model for facility location: A case study. European Journal of Operational Research, 176(3), 1839–1858. https://doi.org/10.1016/J.EJOR.2005.10.039
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Hwang, C.-L., & Yoon, K. (1981). Methods for Multiple Attribute Decision Making. 58–191. https://doi.org/10.1007/978-3-642-48318-9_3
Keeney, R. L. (1996). Value-focused thinking: Identifying decision opportunities and creating alternatives. European Journal of Operational Research, 92(3), 537–549. https://doi.org/10.1016/0377-2217(96)00004-5
Keeney, R. L., & Gregory, R. S. (2005). Selecting attributes to measure the achievement of objectives. Operations Research, 53(1), 1-11. https://doi.org/10.1287/OPRE.1040.0158
Ley-Borrás, R. (2015). Deciding on the decision situation to analyze: the critical first step of a decision analysis. Decision Analysis, 12(1), 46-58. https://doi.org/10.1287/DECA.2014.0308
Lootsma, F. A. (1999). Multi-criteria decision analysis via ratio and difference judgement (Applied optimisation 29) (Vol. 29). Kluwer.
Luczak, A., & Just, M. (2020). The Positional MEF-TOPSIS Method for the Assessment of Complex Economic Phenomena in Territorial Units. Statistics in Transition, 21(nr 2), 157–172. https://doi.org/10.21307/STATTRANS-2020-018
Martín, J. M., Fajardo, W., Blanco, A., & Requena, I. (2003). Constructing linguistic versions for the multicriteria decision support systems preference ranking organisation method for enrichment evaluation I and II. International Journal of Intelligent Systems, 18(7), 711–731. https://doi.org/10.1002/INT.10112
Nguyen, N., Nguyen, H. V., Nguyen, P. T., Tran, V. T., Nguyen, H. N., Nguyen, T. M. N., ... & Nguyen, T. H. (2019). Some key factors affecting consumers’ intentions to purchase functional foods: A case study of functional yogurts in Vietnam. Foods, 9(1), 24. https://doi.org/10.3390/foods9010024
Önüt, S., Kara, S. S., & Işik, E. (2009). Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company. Expert Systems with Applications, 36(2), 3887–3895. https://doi.org/10.1016/J.ESWA.2008.02.045
Peek, G. J., & Van Hagen, M. (2002). Creating synergy in and around stations: Three strategies for adding value. Transportation Research Record, 1793. https://doi.org/10.3141/1793-01
Poh, K. L., & Ang, B. W. (1999). Transportation fuels and policy for Singapore: an AHP planning approach. Computers & Industrial Engineering, 37(3), 507–525. https://doi.org/10.1016/S0360-8352(00)00020-6
Rossolov, A., Naumov, V., Popova, N., Vakulenko, E., & Levchenko, O. (2021). Estimation of transport accessibility in case of rational transport hub location. Transport, 36(1). https://doi.org/10.3846/transport.2021.14299
Roszkowska, E., & Wachowicz, T. (2013). Metoda TOPSIS i jej rozszerzenia - studium metodologiczne. Prace Naukowe / Uniwersytet Ekonomiczny w Katowicach, 11–40. https://doi.org/10.1007/SI0726-012-9299-1
Strahl, D. (1990). Metody programowania rozwoju społeczno-gospodarczego. Państwowe Wydawn. Ekonomiczne.
Tabari, M., Kaboli, A., Aryanezhad, M. B., Shahanaghi, K., & Siadat, A. (2008). A new method for location selection: a hybrid analysis. Applied Mathematics and Computation, 206(2), 598-606. https://doi.org/10.1016/j.amc.2008.05.111
Tuzkaya, G., Önüt, S., Tuzkaya, U. R., & Gülsün, B. (2008). An analytic network process approach for locating undesirable facilities: an example from Istanbul, Turkey. Journal of Environmental Management, 88(4), 970–983. https://doi.org/10.1016/J.JENVMAN.2007.05.004
Wątróbski, J., Jankowski, J., Ziemba, P., Karczmarczyk, A., & Zioło, M. (2019). Generalised framework for multi-criteria method selection R. Omega, 86, 107–124. https://doi.org/10.1016/j.omega.2018.07.004
Wey, W. M., & Wu, K. Y. (2007). Using ANP priorities with goal programming in resource allocation in transportation. Mathematical and Computer Modelling, 46(7–8), 985–1000. https://doi.org/10.1016/J.MCM.2007.03.017
Anable, J. (2005). “Complacent Car Addicts”; or “Aspiring Environmentalists”? Identifying travel behaviour segments using attitude theory. Transport Policy, 12(1). https://doi.org/10.1016/j.tranpol.2004.11.004
Araujo, C. A. S., Wanke, P., & Siqueira, M. M. (2018). A performance analysis of Brazilian public health: TOPSIS and neural networks application. International Journal of Productivity and Performance Management, 67(9), 1526–1549. https://doi.org/10.1108/IJPPM-11-2017-0319
Beirão, G., & Sarsfield Cabral, J. A. (2007). Understanding attitudes towards public transport and private car: A qualitative study. Transport Policy, 14(6). https://doi.org/10.1016/j.tranpol.2007.04.009
Bojkovic, N., Anic, I., & Pejcic-Tarle, S. (2010). One solution for cross-country transport-sustainability evaluation using a modified ELECTRE method. Ecological Economics, 69(5), 1176–1186.
Bouayad-Agha, S., Turpin, N., & Védrine, L. (2013). Fostering the Development of European Regions: A Spatial Dynamic Panel Data Analysis of the Impact of Cohesion Policy. Regional Studies, 47(9), 1573–1593. https://doi.org/10.1080/00343404.2011.628930
Brol, R. (2006). Rozwój regionalny - zakres pojęciowy. In D. Strahl (Ed.), Metody oceny rozwoju regionalnego (pp. 13–17). Wydawnictwo Akademii Ekonomicznej im. Oskara Langego we Wrocławiu.
Çelen, A. (2014). Comparative Analysis of Normalisation Procedures in TOPSIS Method: With an Application to Turkish Deposit Banking Market. Informatica, 25(2), 185–208. https://doi.org/10.15388/Informatica.2014.10
Chakraborty, S., & Yeh, C.-H. (2009). A simulation comparison of normalisation procedures for TOPSIS (pp. 1815–1820). IEEE, Institute of Electrical and Electronics Engineers. https://doi.org/10.1109/ICCIE.2009.5223811
Chamodrakas, I., Alexopoulou, N., & Martakos, D. (2009). Customer evaluation for order acceptance using a novel class of fuzzy methods based on TOPSIS. Expert Systems with Applications, 36(4), 7409–7415. https://doi.org/10.1016/J.ESWA.2008.09.050
Chan, F. T. S., & Kumar, N. (2007). Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega, 35(4), 417–431. https://doi.org/10.1016/j.omega.2005.08.004
Chu, T. C. (2002). Facility location selection using fuzzy TOPSIS under group decisions. International journal of Uncertainty, Fuzziness and Knowledge-Based Systems, 10(06), 687-701. https://doi.org/10.1142/S0218488502001739
Cinelli, M., Kadziński, M., Miebs, G., Gonzalez, M., & Słowiński, R. (2022). Recommending multiple criteria decision analysis methods with a new taxonomy-based decision support system. European Journal of Operational Research, 302(2), 633–651. https://doi.org/10.1016/J.EJOR.2022.01.011
Ertuǧrul, I., & Karakaşoǧlu, N. (2008). Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection. International Journal of Advanced Manufacturing Technology, 39(7–8), 783–795. https://doi.org/10.1007/S00170-007-1249-8
Farahani, R. Z., & Asgari, N. (2007). Combination of MCDM and covering techniques in a hierarchical model for facility location: A case study. European Journal of Operational Research, 176(3), 1839–1858. https://doi.org/10.1016/J.EJOR.2005.10.039
Govindan, K., Khodaverdi, R., & Jafarian, A. (2013). A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, 345–354. https://doi.org/10.1016/J.JCLEPRO.2012.04.014
Greco, S., Matarazzo, B., & Slowinski, R. (2001). Rough sets theory for multicriteria decision analysis. European Journal of Operational Research, 129(1), 1–47. https://doi.org/10.1016/S0377-2217(00)00167-3
Groenendijk, L., Rezaei, J., & Correia, G. (2018). Incorporating the travellers’ experience value in assessing the quality of transit nodes: A Rotterdam case study. Case Studies on Transport Policy, 6(4). https://doi.org/10.1016/j.cstp.2018.07.007
Hernandez, S., Monzon, A., & de Oña, R. (2016). Urban transport interchanges: A methodology for evaluating perceived quality. Transportation Research Part A: Policy and Practice, 84. https://doi.org/10.1016/j.tra.2015.08.008
Hwang, C.-L., & Yoon, K. (1981). Methods for Multiple Attribute Decision Making. 58–191. https://doi.org/10.1007/978-3-642-48318-9_3
Keeney, R. L. (1996). Value-focused thinking: Identifying decision opportunities and creating alternatives. European Journal of Operational Research, 92(3), 537–549. https://doi.org/10.1016/0377-2217(96)00004-5
Keeney, R. L., & Gregory, R. S. (2005). Selecting attributes to measure the achievement of objectives. Operations Research, 53(1), 1-11. https://doi.org/10.1287/OPRE.1040.0158
Ley-Borrás, R. (2015). Deciding on the decision situation to analyze: the critical first step of a decision analysis. Decision Analysis, 12(1), 46-58. https://doi.org/10.1287/DECA.2014.0308
Lootsma, F. A. (1999). Multi-criteria decision analysis via ratio and difference judgement (Applied optimisation 29) (Vol. 29). Kluwer.
Luczak, A., & Just, M. (2020). The Positional MEF-TOPSIS Method for the Assessment of Complex Economic Phenomena in Territorial Units. Statistics in Transition, 21(nr 2), 157–172. https://doi.org/10.21307/STATTRANS-2020-018
Martín, J. M., Fajardo, W., Blanco, A., & Requena, I. (2003). Constructing linguistic versions for the multicriteria decision support systems preference ranking organisation method for enrichment evaluation I and II. International Journal of Intelligent Systems, 18(7), 711–731. https://doi.org/10.1002/INT.10112
Nguyen, N., Nguyen, H. V., Nguyen, P. T., Tran, V. T., Nguyen, H. N., Nguyen, T. M. N., ... & Nguyen, T. H. (2019). Some key factors affecting consumers’ intentions to purchase functional foods: A case study of functional yogurts in Vietnam. Foods, 9(1), 24. https://doi.org/10.3390/foods9010024
Önüt, S., Kara, S. S., & Işik, E. (2009). Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company. Expert Systems with Applications, 36(2), 3887–3895. https://doi.org/10.1016/J.ESWA.2008.02.045
Peek, G. J., & Van Hagen, M. (2002). Creating synergy in and around stations: Three strategies for adding value. Transportation Research Record, 1793. https://doi.org/10.3141/1793-01
Poh, K. L., & Ang, B. W. (1999). Transportation fuels and policy for Singapore: an AHP planning approach. Computers & Industrial Engineering, 37(3), 507–525. https://doi.org/10.1016/S0360-8352(00)00020-6
Rossolov, A., Naumov, V., Popova, N., Vakulenko, E., & Levchenko, O. (2021). Estimation of transport accessibility in case of rational transport hub location. Transport, 36(1). https://doi.org/10.3846/transport.2021.14299
Roszkowska, E., & Wachowicz, T. (2013). Metoda TOPSIS i jej rozszerzenia - studium metodologiczne. Prace Naukowe / Uniwersytet Ekonomiczny w Katowicach, 11–40. https://doi.org/10.1007/SI0726-012-9299-1
Strahl, D. (1990). Metody programowania rozwoju społeczno-gospodarczego. Państwowe Wydawn. Ekonomiczne.
Tabari, M., Kaboli, A., Aryanezhad, M. B., Shahanaghi, K., & Siadat, A. (2008). A new method for location selection: a hybrid analysis. Applied Mathematics and Computation, 206(2), 598-606. https://doi.org/10.1016/j.amc.2008.05.111
Tuzkaya, G., Önüt, S., Tuzkaya, U. R., & Gülsün, B. (2008). An analytic network process approach for locating undesirable facilities: an example from Istanbul, Turkey. Journal of Environmental Management, 88(4), 970–983. https://doi.org/10.1016/J.JENVMAN.2007.05.004
Wątróbski, J., Jankowski, J., Ziemba, P., Karczmarczyk, A., & Zioło, M. (2019). Generalised framework for multi-criteria method selection R. Omega, 86, 107–124. https://doi.org/10.1016/j.omega.2018.07.004
Wey, W. M., & Wu, K. Y. (2007). Using ANP priorities with goal programming in resource allocation in transportation. Mathematical and Computer Modelling, 46(7–8), 985–1000. https://doi.org/10.1016/J.MCM.2007.03.017
Authors
Łopatka, P., Tłuczak, A., & Jadach, R. (2023). Multi-criteria decision support methods for the selection of the optimum contractor: A case study of a passenger transfer centre. Journal of Sustainable Development of Transport and Logistics, 8(2), 219–228. https://doi.org/10.14254/jsdtl.2023.8-2.16
Copyright (c) 2023 Paweł Łopatka, Agnieszka Tłuczak, Robert Jadach
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