MULTI CRITERIA SUBCONTRACTOR SELECTION PROBLEM AND ITS SOLUTION FOR A DEFENCE INDUSTRY FIRM


Can S., ARIKAN ÖKTEMER F.

JOURNAL OF THE FACULTY OF ENGINEERING AND ARCHITECTURE OF GAZI UNIVERSITY, vol.29, no.4, pp.645-654, 2014 (Journal Indexed in SCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 29 Issue: 4
  • Publication Date: 2014
  • Title of Journal : JOURNAL OF THE FACULTY OF ENGINEERING AND ARCHITECTURE OF GAZI UNIVERSITY
  • Page Numbers: pp.645-654

Abstract

This study aims to solve the problem of selecting and evaluating a subcontractor firm for a company that performs research and development activities in defense industry. Subcontractoring means that part of the work is transferred from another company that has special skills or resources that allow it to perform tasks clearly specified in better conditions. During the selection process, considering multiple criteria such as technical requirements of the work, experience of the suncontractor firm, warranty conditions, delivery time, as well as costs is crucial to obtain a realistic and implementable solution. In this study, the solution of the problem is gathered by utilizing the integration of Analytical Hierarchy Process (AHP) and Promethee II method which are multi- criteria decision making methods. Decision Maker's criteria weights are determined by AHP. The ranking of alternatives are obtained Promethee II. The evaluation of the selected alternative on the basis of each criterion is utilized which provides feedback to impove the subcontractor firm. Weight Stability Interval Analysis is performed to investigate impacts of the changes in the weights of criteria determined by AHP on the ranking. As a result, this study provides the most efective selection and evaluation of a subcontractor which is critically important for a national defense research & development project.