Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem
Abstract
:1. Introduction
2. Methods
2.1. AHP Method
2.2. TOPSIS Method and Fuzzy TOPSIS Method
2.3. FWA Left and Right Scores
- Step 1:
- Set the linguistic variables for the importance of criteria and rating of alternatives, represented by fuzzy numbers.
- Step 2:
- Evaluate the importance of criteria on the basis of the linguistic variables provided in Step 1.
- Step 3:
- Let the fuzzy numbers A = (a1, b1, c1), B = (a2, b2, c2) and C = (a3, b3, c3). Aggregate the fuzzy numbers as follows:
- Step 4:
- Normalize the fuzzy decision matrix to determine cost and benefit criteria:= normalized fuzzy number,= Max cij, = Min aij, j =1,…, n,,Ωb = set of benefit criteria,Ωc = set of cost criteria.
- Step 5:
- Calculate the left (Ls)ij and right scores (Rs)ij by using the following formulas:
- Step 6:
- Evaluate the alternatives with respect to the criteria on the basis of the linguistic variables provided in Step 1.
- Step 7:
- Determine the average fuzzy number, normalized fuzzy weights and left and right scores of alternatives with respect to the criteria by repeating Steps 3, 4 and 5.
- Step 8:
- Calculate the value of the FWA by integrating the left and right scores for criteria and alternatives simultaneously:wj = left and right scores of criteria,rij = left and right scores of alternatives.
- Step 9:
- Calculate the average of FWA value , for each alternative using:(θi)U = the upper interval for each alternative,(θi)L = the lower interval for each alternative.
- Step 10:
- Rank the alternatives according to the average values in descending order to obtain the final results.
3. Three Models of AGHSEVS
3.1. LP Model for AGHSEVS
Nomenclature Variable
- CCi
- closeness coefficients of ith vendor,
- Xi
- order quantity for ith vendor,
- D
- total demand (30 units in the model),
- qi
- defect quality rate of ith vendor,
- Q
- company’s maximum acceptable defect quality rate (0.04 in the model),
- Pi
- unit price of ith vendor,
- P
- company’s maximum acceptable unit price with respect to the allocated budget for purchasing the order (9.2 million US dollar in the model),
- Ci
- capacity of ith vendor,
3.2. MCGP Model for AGHSEVS
3.3. MAGP Model for AGHSEVS
- i
- for goals,
- l
- for aspiration levels,
- k
- for segments,
- j
- for decision variables,
- xj
- decision variable,
- xjk
- part of the jth decision variable in the kth segment,
- sjk
- coefficient for the jth decision variable and the kth segment,
- Zl
- coefficient for the lth aspiration level,
- positive deviation from the ith goal target value,
- negative deviation from the ith goal target value,
- n
- number of goals,
- m
- number of decision variables,
- u
- number of aspiration levels for goal,
- hj
- number of segments for the jth decision variable,
- C
- a constant that is related to the DM,
3.4. Solution Procedure
- Step 1:
- Develop AGHSEVS criteria (expert team interview and survey).
- Step 2:
- Identify necessary criteria for AGHSEVS and obtain AHP weight calculated at each level for overall scores.
- Step 3:
- Select the linguistic values (xij, i = 1, 2, …, n, J = 1, 2, …, k) for alternatives with respect to criteria. The fuzzy linguistic rating (xij) preserves the property of ranges of normalized triangular fuzzy numbers belonging to [0, 1]; thus, normalization is not required.
- Step 4:
- Calculate the weighted normalized fuzzy decision matrix.
- Step 5:
- Identify positive-ideal (A+) and negative ideal (A−) solutions. These solutions are provided in the following equations:
- Step 6:
- Calculate the distance of each alternative from A+ and A− by using the following equations:
- Step 7:
- Calculate similarities to the ideal solution:
- Step 8:
- Rank the preference order. Choose an alternative with maximum or rank alternatives according to in descending order. An alternative with the index approaching 1 indicates that the alternative is close to the fuzzy positive ideal reference point and far from the fuzzy negative ideal reference point. Note that a large value of the index indicates the favorable performance of an alternative Aj [5].
- Step 9:
- Compare fuzzy TOPSIS and FWA left and right scores results.
- Step 10:
- According to the closeness coefficients (Table 10) obtained from Step 8, build a LP model to determine the ideal vendors and their optimal order quantities. To select the optimal order quantities, the TVP should be maximized [36].
- Step 11:
- According to the closeness indices obtained from Step 8, the LP method can be expressed as Equation (27) to solve the AGHSEVS problem as follows:Max (TVP) = 0.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5,0.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5< = 30,7.9X1 + 8.9X2 + 9.3X3 + 9.5X4 + 9.6X5< = 288,5X1 + 4X2 + 6X3 + X4 + 2X5< = 180,X1 + X2 + X3 + X4 + X5< = 35,X1< = 15; (vendor EA1 capacity constraint),X2 < = 10; (vendor EA2 capacity constraint),X3 < = 20; (vendor EA3 capacity constraint)X4 < = 30; (vendor EA4 capacity constraint)X5 < = 12; (vendor EA5 capacity constraint),X1 > = 0; X2 > = 0; X3 > = 0; X4 > = 0; X5 > = 0.
- f1(x) =
- 0.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5 ≥ 20 and ≤ 30 (g1: TVP goal, the more the better),
- f2(x) =
- 7.9X1 + 8.9X2 + 9.3X3 + 9.5X4 + 9.6X5 ≥ 276 and ≤ 288 (g2: cost goal, the less the better; i.e., $7.9 30 units = $276; $9.6 30 units = $288),
- f3(x) =
- 0.05X1 + 0.04X2 + 0.06X3 + 0.01X4 + 0.02X5 < = 1.8 (g3: delivery defect rate goal, the less the better; i.e., 0.06 30 units = 1.8),
- f4(x) =
- X1 + X2 + X3 + X4 + X5 ≥ 30 and ≤ 35 (g4: procurement level goal, the more the better),
- i
- 1, 2, …, n index of vendors,
- j
- 1, 2, …, J index of deviation corresponding to the goals,
- t
- 1, 2, …, T index of deviation corresponding to the multiple criteria,
- Ci
- cost of material of vendor i,
- Oi
- order cost of vendor i.
- CCi
- closeness coefficient of vendor i,
- V
- value of purchasing budget,
- ,
- maximum and minimum deviation of goal j,
- ,
- maximum and minimum deviation of ,
- qi
- rate of delivery defects of vendor i,
- pi
- rate of delivery delay number of vendor i,
- Q
- maximum acceptable rate of delivery defects,
- P
- maximum acceptable rate of delivery delay number,
- D
- demand,
- Si
- capacity of vendor i,
- Xi
- order quantity of vendor i
- yi
- binary integer
- Step 12:
- Using the MCGP method can be expressed as Equations (28) and (29) to select the optimal equipment vendor.
- Step 13:
- Using the MAGP method can be expressed as Equation (30) to select the optimal equipment vendor.MinTVP = 0.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5f1 = 0.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5f2 = 7.9X1 + 8.9X2 + 9.3X3 + 9.5X4 + 9.6X5f3 = 0.05X1 + 0.04X2 + 0.06X3 + 0.01X4 + 0.02X5f4 = X1 + X2 + X3 + X4 + X50.362X1 + 0.350X2 + 0.370X3 + 0.324X4 + 0.340X5 = 20Z1 + 30Z27.9X1 + 8.9X2 + 9.3X3 + 9.5X4 + 9.6X5 = 276Z1 + 288Z20.05X1 + 0.04X2 + 0.06X3 + 0.01X4 + 0.02X5 =120Z1 + 180Z2X1 + X2 + X3 + X4 + X5 = 30Z1 + 35Z2X1< = 15 (vendor EA1 capacity constraint)X2< = 10 (vendor EA2 capacity constraint)X3< = 20 (vendor EA3 capacity constraint)X4< = 30 (vendor EA4 capacity constraint)X5< = 12 (vendor EA5 capacity constraint)Z1 + Z2 = 1Z1> = 0; Z2> = 0X1> = 0; X2> = 0; X3> = 0; X4> = 0; X5> = 0> = 0; > = 0; > = 0; > = 0; > = 0; > = 0; > = 0; > = 0.
- Step 14:
- Compare the results of two GP models for AGHSEVS.
4. Case Application
4.1. Identification of Criteria for AGHSEVS
4.2. Calculation of Criterion Weights
4.3. Evaluation of Alternatives and Determining the Rank
4.4. Comparing Solutions for the LP, MCGP and MAGP Models
5. Conclusions and Implications
5.1. Conclusions and Limitations
Limitations
5.2. Management Implications
5.3. Future Directions
Author Contributions
Funding
Conflicts of Interest
References
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Intensity of Importance | Definition Meaning |
---|---|
1 | Equally important |
3 | Moderately more important |
5 | Strongly more important |
7 | Very strongly more important |
9 | Extremely more important |
2, 4, 6, 8 | Intermediate values |
Coefficient Segments of Variable | Choice | |||||
---|---|---|---|---|---|---|
X1 | X2 | X3 | X4 | X5 | Choice Value | Goal |
0.362 | 0.35 | 0.37 | 0.324 | 0.340 | 20, 30 | Total value |
7.9 | 8.9 | 9.3 | 9.5 | 9.6 | 276, 288 | Cost(Price) |
0.05 | 0.04 | 0.06 | 0.01 | 0.02 | 1.2, 1.8 | Delivery defect rate |
1 | 1 | 1 | 1 | 1 | 30, 35 | Procurement level |
Hong Kong | Japan | United States | France | Germany | Manufacture areas |
Linguistic Values | Fuzzy Numbers |
---|---|
Very low (VL) | (0, 0, 0.2) |
Low (L) | (0, 0.2, 0.4) |
Medium (M) | (0.2, 0.4, 0.6) |
High (H) | (0.4, 0.6, 0.8) |
Very high (VH) | (0.6, 0.8, 1) |
Excellent (E) | (0.8, 1, 1) |
Equipment Criteria | Definition of Importance |
---|---|
(EC1) Equipment quality | Good equipment quality control mean-time-between-failures (MTBF) Good operation in airport work environment |
(EC2) Safety mechanisms | Provides a safety mechanism for operators. Provide building equipment safety mechanism to prevent unexpected AGHS equipment accidents. Use airport ground handling equipment standards for reliability Availability and maintainability. On-line control process systems. |
(EC3) Maintenance | Direct spare-parts supply mean-time-to repair (MTTR) Provide repair guarantee support |
(EC4) Technical transfer and mechanic training | Provide technical information sharing Provide technical mechanic training Adequate number of experience consultants Continuous improvement programs |
(EC5) Supply after sales quick technical services and cooperative relationship | Provide after sales good quality of service and good relationship. Continuous improvement programs. |
(EC6) Reasonable price | Limited project budget. Limited annual maintenance budget. |
EC1 | EC2 | EC3 | EC4 | EC5 | EC6 | |
---|---|---|---|---|---|---|
EC1 | 1.0 | 0.2 | 0.3 | 0.4 | 0.2 | 0.6 |
EC2 | 0.5 | 1.0 | 3.4 | 1.9 | 2.3 | 2.3 |
EC3 | 2.4 | 0.4 | 1.0 | 0.3 | 0.4 | 0.4 |
EC4 | 0.4 | 0.5 | 3.2 | 1.0 | 1.5 | 2.4 |
EC5 | 1.9 | 0.4 | 2.1 | 0.5 | 1.0 | 1.9 |
EC6 | 1.8 | 2.9 | 2.3 | 0.3 | 2.8 | 1.0 |
Equipment Criteria | Weights (w) | λmax, CI, RI | CR |
---|---|---|---|
EC1 | 0.067 | λmax = 6.303 | 0.050 |
EC2 | 0.277 | ||
EC3 | 0.114 | CI = 0.060 | |
EC4 | 0.195 | ||
EC5 | 0.167 | RI = 1.24 | |
EC6 | 0.179 |
EC1 | EC2 | EC3 | EC4 | EC5 | EC6 | |
---|---|---|---|---|---|---|
A1 | Excellent | Low | Medium | Very high | Medium | High |
A2 | High | Medium | Very high | High | High | Very high |
A3 | Very high | Medium | High | Excellent | High | Medium |
A4 | Low | Very high | Excellent | Medium | Medium | High |
A5 | Very high | High | Low | Very high | Very high | Excellent |
A1 | (0.8, 1, 1) | (0, 0.2, 0.4) | (0.2, 0.4, 0.6) | (0.6, 0.8, 1) | (0.2, 0.4, 0.6) | (0.4, 0.6, 0.8) |
A2 | (0.4, 0.6, 0.8) | (0.2, 0.4, 0.6) | (0.6, 0.8, 1) | (0.4, 0.6, 0.8) | (0.4, 0.6, 0.8) | (0.6, 0.8, 1) |
A3 | (0.6, 0.8, 1) | (0.2, 0.4, 0.6) | (0.4, 0.6, 0.8) | (0.8, 1, 1) | (0.4, 0.6, 0.8) | (0.2, 0.4, 0.6) |
A4 | (0, 0.2, 0.4) | (0.6, 0.8, 1) | (0.8, 1, 1) | (0.2, 0.4, 0.6) | (0.2, 0.4, 0.6) | (0.4, 0.6, 0.8) |
A5 | (0.6, 0.8, 1) | (0.4, 0.6, 0.8) | (0, 0.2, 0.4) | (0.6, 0.8, 1) | (0.6, 0.8, 1) | (0.8, 1, 1) |
* Weight | 0.067 | 0.277 | 0.114 | 0.195 | 0.167 | 0.179 |
EC1 | EC2 | EC3 | EC4 | EC5 | EC6 | |
---|---|---|---|---|---|---|
A1 | (0.054, 0.067, 0.067) | (0.000, 0.055, 0.111) | (0.023, 0.046, 0.068) | (0.117, 0.156, 0.195) | (0.033, 0.067, 0.100) | (0.072, 0.107, 0.143) |
A2 | (0.027, 0.040, 0.054) | (0.055, 0.111, 0.166) | (0.068, 0.091, 0.114) | (0.078, 0.117, 0.156) | (0.067, 0.100, 0.134) | (0.107, 0.143, 0.179) |
A3 | (0.040, 0.054, 0.067) | (0.055, 0.111, 0.166) | (0.046, 0.068, 0.091) | (0.156, 0.195, 0.195) | (0.067, 0.100, 0.134) | (0.036, 0.072, 0.107) |
A4 | (0.000, 0.013, 0.027) | (0.166, 0.222, 0.277) | (0.091, 0.114, 0.114) | (0.039, 0.078, 0.117) | (0.033, 0.067, 0.100) | (0.072, 0.107, 0.143) |
A5 | (0.040, 0.054, 0.067) | (0.111, 0.166, 0.222) | (0.000, 0.023, 0.046) | (0.117, 0.156, 0.195) | (0.100, 0.134, 0.167) | (0.143, 0.179, 0.179) |
A+ | = (1, 1, 1) | = (0, 0, 0) | = (1, 1, 1) | = (1, 1, 1) | = (1, 1, 1) | = (0, 0, 0) |
A− | = (0, 0, 0) | = (1, 1, 1) | = (0, 0, 0) | = (0, 0, 0) | = (0, 0, 0) | = (1, 1.1) |
Alternatives | D+ | D− | CCj |
---|---|---|---|
EA1 | 3.852 | 2.182 | 0.362 |
EA2 | 3.919 | 2.108 | 0.350 |
EA3 | 3.793 | 2.232 | 0.370 |
EA4 | 4.075 | 1.953 | 0.324 |
EA5 | 3.975 | 2.048 | 0.340 |
Rank | Weighted CCj | Weighted Ranking | Un-Weight CCj | Un-Weighted Ranking |
---|---|---|---|---|
1 | 0.370 | EA3 | 0.669 | EA3 |
2 | 0.362 | EA1 | 0.608 | EA1 |
3 | 0.350 | EA2 | 0.560 | EA2 |
4 | 0.340 | EA5 | 0.508 | EA5 |
5 | 0.324 | EA4 | 0.432 | EA4 |
Vendor Number | L Value | R Value | FWA Average Value | Rank |
---|---|---|---|---|
EA1 | 0.264 | 0.587 | 0.425 | 3 |
EA2 | 0.318 | 0.426 | 0.372 | 4 |
EA3 | 0.318 | 0.593 | 0.456 | 1 |
EA4 | 0.318 | 0.418 | 0.368 | 5 |
EA5 | 0.377 | 0.474 | 0.426 | 2 |
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Shen, C.-W.; Peng, Y.-T.; Tu, C.-S. Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem. Sustainability 2019, 11, 3466. https://doi.org/10.3390/su11123466
Shen C-W, Peng Y-T, Tu C-S. Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem. Sustainability. 2019; 11(12):3466. https://doi.org/10.3390/su11123466
Chicago/Turabian StyleShen, Chien-Wen, Yen-Ting Peng, and Chang-Shu Tu. 2019. "Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem" Sustainability 11, no. 12: 3466. https://doi.org/10.3390/su11123466
APA StyleShen, C. -W., Peng, Y. -T., & Tu, C. -S. (2019). Multi-Criteria Decision-Making Techniques for Solving the Airport Ground Handling Service Equipment Vendor Selection Problem. Sustainability, 11(12), 3466. https://doi.org/10.3390/su11123466