IDEAS home Printed from https://ideas.repec.org/h/spr/lnopch/978-981-19-8012-1_6.html
   My bibliography  Save this book chapter

A Decision Support System for Supplier Selection in Public Procurement: A Case of Banaras Locomotive Works, Varanasi

In: Applications of Operational Research in Business and Industries

Author

Listed:
  • Gynaesh Tripathi

    (Indian Institute of Technology (BHU)
    Indian Railway Services of Mechanical Engineering)

  • Ajinkya N. Tanksale

    (Indian Institute of Technology (BHU))

Abstract

This study presents a mixed-method approach for the problem of supplier selection in the context of public procurement. A recent tender invited by BLW, a unit of Indian Railways producing ‘diesel-electric’ and electric locomotives for Indian Railways and export market for the propulsion system (the costliest and most important item in the assembly of the locomotive), has been considered in this work. Initially, the criteria for evaluation of vendors are identified through the survey of experts from Indian Railways, who are engaged in procurement for the organization. These criteria are used to calculate the inter-se ranking of the offers received against the procurement tender. For the purpose of evaluation, the weights of the attributes are calculated using the Analytic Hierarchy Process (AHP) by taking the inputs for relative comparison of the attributes from experts through a questionnaire-based survey. Then, the ranking of the offers, as well as the relative importance of offers, is calculated using the TOPSIS method. Further, a mixed-integer programming (MIP) problem has been formulated to ensure the optimal order allocation in the multi-sourcing environment with an objective of maximizing the total value of the purchase. The model is populated with constraints that limit the order quantity, like selection of suppliers, the order quantity, minimum order quantity, and minimum number of suppliers to be selected. Results of the case are presented considering various scenarios. As a result of the study, it has revealed that the multi-sourcing of the suppliers for a specific item in given situation has an additional penalty on the organization. The effective and optimal use of the resources can be ascertained with the help of the proposed study. The biggest advantage of the study is engagement of potential suppliers, evaluators, and the end user. Continual system improvement is additional and inherent advantage reaped through proposed model.

Suggested Citation

  • Gynaesh Tripathi & Ajinkya N. Tanksale, 2023. "A Decision Support System for Supplier Selection in Public Procurement: A Case of Banaras Locomotive Works, Varanasi," Lecture Notes in Operations Research, in: Angappa Gunasekaran & Jai Kishore Sharma & Samarjit Kar (ed.), Applications of Operational Research in Business and Industries, chapter 0, pages 83-99, Springer.
    • Handle: RePEc:spr:lnopch:978-981-19-8012-1_6
    DOI: 10.1007/978-981-19-8012-1_6
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:lnopch:978-981-19-8012-1_6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.