Quarterly Publication

Document Type : Original Article

Authors

1 Assistant Professor, Energy Economics & Management Department, Petroleum Faculty of Tehran, Petroleum University of Technology, Tehran, Iran

2 Project Management Office, Iranian Offshore Engineering and Construction Company (IOEC), Tehran, Iran

Abstract

Since a large number of the oil and gas projects are related to the supply chain, the selection of contractors and suppliers is very important. In projects, a contractor is obliged to supply the goods from suppliers and manufacturers approved by the clients, while most companies in Iran, including the company surveyed in this research, i.e. Iranian Offshore Engineering and Construction Company (IOEC, do not have a scientific approach to this issue). The main objective of this research is providing a scientific and practical approach to ranking suppliers and contractors at IOEC and selecting the best ones. In order to achieve such an objective, an integrated model of Swing and TOPSIS methods with fuzzy approach has been designed and applied to a real case. The actual data used are obtained from the post-lay survey of the exports and infield pipelines of South Pars development phases 13, 14, and 22.
Keywords: Supplier Selection, multi attribute decision making (MADM), Oil and Gas, IOEC, Swing, Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), Fuzzy, Pipelines

Keywords

Main Subjects

Aalianvari, A., Katibeh, H., & Sharifzadeh, M., 2012. Application of fuzzy Delphi AHP method for the estimation and classification of Ghomrud tunnel from groundwater flow hazard. Arabian Journal of Geosciences, 5(2), pp. 275-284.
Abdel-Tawwab, M., Abdel-Rahman, A. M., & Ismael, N. E., 2008. Evaluation of commercial live bakers’ yeast, Saccharomyces cerevisiae as a growth and immunity promoter for Fry Nile tilapia, Oreochromis niloticus (L.) challenged in situ with Aeromonas hydrophila. Aquaculture, 280(1), pp. 185-189.
Afshar, A., Mariño, M. A., Saadatpour, M., & Afshar, A., 2011. Fuzzy TOPSIS multi-criteria decision analysis applied to Karun reservoirs system. Water resources management, 25(2), pp. 545-563.
Akao, Y., Nagai, K., & Maki, N., 1996. QFD concept for improving higher education. s.l., s.n., pp. 12-20.
Alipour, M. H., Shamsai, A., & Ahmady, N., 2010. A new fuzzy multicriteria decision making method and its application in diversion of water. Expert Systems with Applications, 37(12), pp. 8809-8813.
Almossawi, M., 2001. Bank selection criteria employed by college students in Bahrain: an empirical analysis. International Journal of Bank Marketing, 19(3), pp. 115-125.
Assellaou, H., Ouhbi, B., & Frikh, B., 2018. A Hybrid MCDM Approach for Supplier Selection with a Case Study. In Recent Developments in Metaheuristics, pp. 179-197.
Aung, T., Wong, H. T., Yip, C. C., Leong, J. Y., Chan, Y. H., & Chew, P. T., 2000. Comparison of the intraocular pressure-lowering effect of latanoprost and timolol in patients with chronic angle closure glaucoma: a preliminary study. Ophthalmology, 107(6), pp. 1178-1183.
Balasubramaniam, A., Boyle, A. R., & Voulvoulis, N., 2007. Improving petroleum contaminated land remediation decision making through the MCA weighting process. Chemosphere, 66(5), pp. 791-798.
Bellman, R. E., and Zadeh, L. A., 1970 Decision making in a fuzzy environment. Management Science, 17(4), pp. 141–164.
Barron, F.H., 1992. Selecting a best multi attribute alternative with partial information about attribute weights, Acta Psychologica: 80: 91-103.
Bendana, R., del Cano, A., & Pilar de la Cruz, M., 2008. Contractor selection: fuzzy-control approach. Canadian Journal of Civil Engineering, 35(5), pp. 473-486.
Birgün Barla, S., 2003. A case study of supplier selection for lean supply by using a mathematical model. Logistics Information Management, 16(6), pp. 451-459.
Boran, F. E., Genç, S., Kurt, M., & Akay, D, 2009. A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), p. 36.
Brans, J. P., 1982. The engineering decision: Development of instruments to support the decision. The PROMETHEE method.
Calizaya, A., Meixner, O., Bengtsson, L., & Berndtsson, R., 2010. Multi-criteria decision analysis (MCDA) for integrated water resources management (IWRM) in the Lake Poopo Basin, Bolivia. Water resources management, 24(10), pp. 2267-2289.
Charnes, A., & Cooper, W. W., 1977. Goal programming and multiple objective optimizations: Part 1. European Journal of Operational Research, 1(1), pp. 39-57.
Chen, J., ZHANG, H. S., & ZHANG, J. G., 2010. Performance Evaluation of Missile Weapon Systems Based on Advanced TOPSIS Theory [J]. Computer Simulation, Volume 9, p. 25.
Chen, C. T., 2000. Extensions of the TOPSIS for group decision making under fuzzy environment. Fuzzy sets and systems, 114(1), pp. 1-9.
Churchman, C. W., & Ackoff, R. L., 1954. An approximate measure of value. Journal of the Operations Research Society of America, 2(2), pp. 172-187.
De Boer, L., labro, E. and Morlacchi, P., 2001. A review of methods supporting supplier selection. European journal of purchasing and supply management, pp. 75-84.
DENG, J., 1982. Grey control theory. Journal of Huazhong University of Science and Technology, 10(3), pp. 9-18.
Diakoulaki, D., Mavrotas, G., & Papayannakis, L., 1995. Determining objective weights in multiple criteria problems: The critic method. Computers & Operations Research, 22(7), pp. 763-770.
Dickson, G. W., 1996. An analysis of vendor selection systems and decisions. Journal of Purchasing, 2(1).
Doloi, H., Iyer, K. C., & Sawhney, A., 2011. Structural equation model for assessing impacts of contractor's performance on project success. International Journal of Project Management, 29(6), pp. 687-695.
Edwards, W., 1977. Social utilities, The Engineering Economist Summer Symposium Series, 6, 119–129.
Edwards, W. And Barron, F. H., 1994. SMARTS and SMARTER: Improved simple methods for multi-attribute utility measurement, Organizational Behavior and Human Decision Processes, 60(3), PP. 306-325. 
El‐Sayegh, S. M., 2009. Multi‐criteria decision support model for selecting the appropriate construction management at risk firm. Construction Management and Economics, 27(4), pp. 385-398.
Erdem & Gocen, 2012. Development of a decision support system for supplier evaluation and order allocation. Expert Systems with Applications, 39(5), pp. 4927-4937.
Tervonen, T., Figueira, J. R., Lahdelma, R., Dias, J. A., & Salminen, P., 2009. A stochastic method for robustness analysis in sorting problems. European Journal of Operational Research, 192(1), pp. 236-242.
Eskandari, M., Homaee, M., & Mahmodi, S., 2012. An integrated multi criteria approach for landfill siting in a conflicting environmental. Economical and socio-cultural area. Waste Management, 32(8), pp. 1528-1538.
Figueira, J., and Roy, B., 2002. Determining the weights of criteria in the ELECTRE type methods with a revised SIMOS’ procedure, European Journal of Operational Research, 139(2), PP. 317–326.
Fontana, M. E., Morais, D. C., & de Almeida, A. T., 2011. A MCDM Model for Urban Water Conservation Strategies Adapting Simos Procedure for Evaluating Alternatives Intra-criteria. In EMO, pp. 564-578.
Fontela, E., & Gabus, A., 1976. The DEMATEL observer.
Garcia, F., Guijarro, F., & Moya, I., 2010. A goal programming approach to estimating performance weights for ranking firms. Computers & Operations Research, 37(9), pp. 1597-1609.
Gary Teng, S., & Jaramillo, H., 2005. A model for evaluation and selection of suppliers in global textile and apparel supply chains. International Journal of Physical Distribution & Logistics Management, 35(7), pp. 503-523.
Hatefi, M.A., 2019. Indifference Threshold-based Attribute Ratio Analysis: A Method for Assigning the Weights to the Attributes in Multiple Attribute Decision Making. Applied Soft Computing, 74, pp. 643-651.
Karsak, E. E., & Dursun, M., 2014. An integrated supplier selection methodology incorporating QFD and DEA with imprecise data. Expert Systems with Applications, 41(16), pp. 6995-7004.
Kaur, H., Singh, S. P., & Glardon, R., 2016. An integer linear program for integrated supplier selection: A sustainable flexible framework. Global Journal of Flexible Systems Management, 17(2), pp. 113-134.
Kersuliene, V., Zavadskas, E. K., and Turskis, Z., 2010. Selection of rational dispute resolution method by applying new step‐wise weight assessment ratio analysis (SWARA). Journal of Business Economics and Management, 11(2), pp. 243–258.
Khorshid, S. Karluux, Teslimi, M. S. and Jafarnejad, K, 2004. Ranking and selecting research projects under fuzzy environmental decision making group through TOPSIS decision making technique. Management of organizational culture, 5(2), pp. 5-28.
Kibria, G., Doloi, B., & Bhattacharyya, B., 2010. Experimental analysis on Nd: YAG laser micro-turning of alumina ceramic. The International Journal of Advanced Manufacturing Technology, 50(5-8), pp. 643-650.
Kim, G., Park, C. S., and Yoon, K. P., 1997. Identifying investment opportunities for advanced manufacturing systems with comparative-integrated performance measurement. International Journal of Production Economics, 50(1), pp. 23–33.
Kodikara, P. N., Perera, B. J. C., & Kularathna, M. D. U. P., 2010. Stakeholder preference elicitation and modelling in multi-criteria decision analysis–A case study on urban water supply. European Journal of Operational Research, 206(1), pp. 209-220.
Kretter, A., 1957. Factory Dopytu Po biopotravinach a postoje spotrebitela factors of biofood and consumer's attitudes. Journal of the Royal Statistical Society, Volume 120(Part 3), pp. 253-290.
Ku, C. Y., Chang, C. T., & Ho, H. P., 2010. Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming. Quality & Quantity, 44(4), pp. 623-640.
Kumar, R., & Singh, S. P. , 2015. AHP-IRP: An integrated approach for decision making. s.l., s.n., pp. 605-612.
Linstone, H., 1975. Introduction in the Delphi Method: techniques and applications. Linstone and Turoff.
Machiwal, D., Jha, M. K., & Mal, B. C., 2011. Assessment of groundwater potential in a semi-arid region of India using remote sensing, GIS and MCDM techniques. Water resources management, 25(5), pp. 1359-1386.
Masterman, J. W. E., & Duff, A. R., 1994. The selection of building procurement systems by client organizations. In Proceedings of the 10th Annual ARCOM Conference, Volume 2, pp. 650-9.
Min, H., 1994. International supplier selection: a multi-attribute utility approach. International Journal of Physical Distribution & Logistics Management, 24(5), pp. 24-33.
Nieto-Morote, A. and F. Ruz-Vila, 2012. A fuzzy multi-criteria decision making model for construction contractor prequalification. Automation in Construction, Volume 25, pp. 8-19.
Opricović, S., Duckstein, L., & Djordjević, B., 1979. Multiobjective Optimization in Water Resources Planning. Cagliari, s.n.
Ozcan, T., Çelebi, N., & Esnaf, Ş., 2011. Comparative analysis of multi-criteria decision making methodologies and implementation of a warehouse location selection problem. Expert Systems with Applications, 38(8), pp. 9773-9779.
Palaneeswaran, E., & Kumaraswamy, M., 2001. Recent advances and proposed improvements in contractor prequalification methodologies. Building and Environment, 36(1), pp. 73-87.
Phillips, S. J., & Dudik, M., 2008. Modeling of species distributions with Maxent: new extensions and a comprehensive evaluation. Ecography, 31(2), pp. 161-175.
Plebankiewicz, E., 2012. A fuzzy set based contractor prequalification procedure. Automation in Construction, Volume 22, pp. 433-443.
Rashid, T., and Husnine, S. M., 2014, Multicriteria group decision making by using trapezoidal valued hesitant fuzzy sets. The Scientific World Journal, 304834, pp. 1-8.
Razmi Jafar, Naha Hassan, & Meshkin Fam Saeed, 2008. Designing a new decision support model for evaluating and selecting contractors in tenders. The theory of technical school, Volume 41.
Razmi, J., Jafari Songhori, M. and Khakbaz, H., 2009. An integrated fuzzy decision making/fuzzy linear programming (FGDMLP) framework for supplier evaluation and order allocation. International Journal of Advanced Manufacturing Technology, pp. 5-6.
Rezaei, J., 2015. Best-worst multi-criteria decision-making method. Omega, 53(1), pp. 49-57.
Roy, B., 1968. Classement et choix en présence de points de vue multiples (la méthode ELECTRE). RIRO, Volume 8, p. 57–75.
Saaty, T.L., 1977. A scaling method for priorities in hierarchical structures, Journal of Mathematical Psychology, 15(1), PP. 234-281.
Saaty, T.L., 1980. The analytic hierarchy process: New York: McGraw-Hill.
Saaty, T. L., & Takizawa, M., 1986. Dependence and independence: From linear hierarchies to nonlinear networks. Dependence and independence: From linear hierarchies to nonlinear networks., 26(2), pp. 229-237.
Safarani, S., Khatami Firouzabadi, S. M. A., & Ahangar, A., 2017. Supplier Selection for Serum and Syringe Using Multi-Criteria Decision making Methods ELECTRE1, TOPSIS and Compared Them with VIKOR. Journal of Payavard Salamat, 11(4), pp. 380-390.
Schneider, F., 2008. Multiple criteria decision making in application layer networks. Bayreuth reports on information systems management, Issue 36.
Schrijver, A., 1998. Theory of linear and integer programming. s.l. John Wiley & Sons.
Shanian, A., Milani, A. S., Carson, C., & Abeyaratne, R. C., 2008. A new application of ELECTRE III and revised Simos’ procedure for group material selection under weighting uncertainty. Knowledge-Based Systems, 21(7), pp. 209-720.
Simos, T. E., 1990. A four-step method for the numerical solution of the Schrodinger equation. Journal of computational and applied mathematics, 30(3), pp. 251-255.
Singh, D., & Tiong, R. L., 2006. Contractor selection criteria: investigation of opinions of Singapore construction practitioners. Journal of construction engineering and management, 132(9), pp. 998-1008.
Singh, S., & Murphy, B. J., 1990. Evaluation of the stability of sanitary landfills. s.l., ASTM International.
Skitmore, RM and Marsden, DE, 1988. Which procurement system? towards a universal procurement selection technique. Construction Management and Economics, 6(1), pp. 71-89.
Thurstone, L. L., 1927. A law of comparative judgment. Psychological review, 34(4), p. 273.
Toosi, S. R., & Samani, J. V., 2012. Evaluating water transfer projects using analytic network process (ANP). Water resources management, 26(7), pp. 1999-2014.
UNEP, 1987. s.l.: The United Nation Environmental Program.
Van Laarhoven, P. J. M., & Pedrycz, W., 1983. A fuzzy extension of Saaty’s priority theory. Fuzzy sets and Systems, 11(1-3), pp. 229-241.
Vincent, F. Y., & Hu, K. J., 2010. An integrated fuzzy multi-criteria approach for the performance evaluation of multiple manufacturing plants. Computers & Industrial Engineering, 58(2), pp. 269-277.
Von-Winterfeldt, D., and Edwards, W., 1986. Decision analysis and behavioral research: Cambridge University Press, Cambridge, MA.
Wang Chen, H. M., Chou, S. Y., Luu, Q. D., & Yu, T. H. K., 2016. A Fuzzy MCDM Approach for Green supplier selection from the economic and environmental aspects. Mathematical Problems in Engineering, Volume 2016, p. 10.
Wang, Y.M., and Lou, Y., 2010. Integration of correlations with standard deviations for determining attribute weights in multiple attribute decision-making. Mathematical and Computer Modeling, 51(1-2), pp. 1-12.
Wang, J., and Zionts, S., 2015. Using ordinal data to estimate cardinal values. Journal of Multi-Criteria Decision Analysis, 22, pp. 185-196.
Watt, D. J., Kayis, B., & Willey, K., 2009. Identifying key factors in the evaluation of tenders for projects and services. International Journal of Project Management, 27(3), pp. 250-260.
Williams, D., 1780. A plan of association on constitutional principles, for the parishes, tithings, hundreds, and counties of Great Britain, by which the outrages of mobs, and the necessity of a military government will be prevented. s.l.:s.n.
Yang, J. L., Chiu, H. N., Tzeng, G. H., & Yeh, R. H., 2008. Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships. Information Sciences, 178(21), pp. 4166-4183.
Yu, W., 1992. ELECTRE TRI(aspects méthodologiques et manuel d'utilisation). Document- Université de Paris-Dauphine-LAMSADE.
Zavadskas, E. K., Liias, R., & Turskis, Z., 2008. Multi-Attribute decision making methods for assessment of quality in bridges and road construction: state-of-the-art surveys. Baltic Journal of Road & Bridge Engineering, 3(3).