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A Decision Analytical Perspective on Public Procurement Processes
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences. International Institute for Applied Systems Analysis, Laxenburg, Austria.
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences. International Institute for Applied Systems Analysis, Laxenburg, Austria.
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences.
Stockholm University, Faculty of Social Sciences, Department of Computer and Systems Sciences. Department of Information and Communications Systems, Mid Sweden University, Sundsvall, Sweden.
2016 (English)In: Real-World Decision Support Systems: Case Studies / [ed] Jason Papathanasiou, Nikolaos Ploskas, Isabelle Linden, Cham: Springer, 2016, 125-150 p.Chapter in book (Other academic)
Abstract [en]

If procurement processes are to be taken seriously, purchase managers need decision support tools beyond those that only ascertain that the formal requirements are met. This chapter demonstrates some fundamental flaws with common models used in procurement situations, flaws that are so serious that the evaluations of tenders often become meaningless and may lead to large and costly miscalculations. We demonstrate how the equitability of the tender evaluations can be significantly improved through the use of multi-criteria decision analysis with numerically imprecise input information. Due to this, the computational part of the evaluation step becomes more complex, and algorithms targeted for decision evaluation with imprecise data are used. We therefore present a procurement decision tool, Decide IT, implementing such algorithms that can be used as an instrument for a more meaningful procurement process. Of importance is to allow for a more realistic degree of precision in the valuation and ranking of tenders under each evaluation criterion, as well as the associated weighting of the criteria, since the criteria are often of a more qualitative nature. Through this, both quantitative and qualitative statements could be easily managed within the same framework and without the need to introduce ad-hoc and often arbitrary conversion formulas supposed to capture the trade-off between criteria.

Place, publisher, year, edition, pages
Cham: Springer, 2016. 125-150 p.
Series
Integrated Series in Information Systems, ISSN 1571-0270, E-ISSN 2197-7968 ; 37
National Category
Information Systems
Research subject
Computer and Systems Sciences
Identifiers
URN: urn:nbn:se:su:diva-137465DOI: 10.1007/978-3-319-43916-7_6ISBN: 9783319439150 (print)ISBN: 9783319439167 (electronic)OAI: oai:DiVA.org:su-137465DiVA: diva2:1062740
Available from: 2017-01-08 Created: 2017-01-08 Last updated: 2017-04-28Bibliographically approved

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CiteExportLink to record
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Citation style
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