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Published on: October 6, 2020
A multi-dimensional evaluation model for power enterprise procurement performance based on fuzzy analytic hierarchy
Haigang Zhao1, Shugui Song1, Xiaoqing Lv2
1Department of Procurement (Bidding Management Center), State Grid Corporation of China, Beijing, 100031, China.
This study introduces an integrated Fuzzy Analytic Hierarchy Process (FAHP) and TOPSIS model for power enterprise procurement. The model enhances decision-making by addressing uncertainty and integrating power-specific criteria, improving evaluation accuracy.
Area of Science:
- Operations Research
- Decision Science
- Energy Systems Engineering
Background:
- Power enterprises face unique procurement challenges due to grid reliability, regulatory demands, and long-term investments.
- Traditional evaluation methods struggle with linguistic uncertainty, integrating power-specific criteria, and aggregating stakeholder objectives.
- Existing frameworks lack systematic approaches for complex decision-making in the power sector.
Purpose of the Study:
- To develop a comprehensive multi-dimensional evaluation model for power enterprise procurement.
- To integrate Fuzzy Analytic Hierarchy Process (FAHP) and TOPSIS for enhanced decision support.
- To address limitations of traditional methods in handling uncertainty and power-specific criteria.
Main Methods:
- Integration of Fuzzy Analytic Hierarchy Process (FAHP) for subjective judgment and uncertainty handling.
- Application of TOPSIS for robust ranking based on distance-to-ideal solutions.
- Development of a hierarchical evaluation system with dimensions: cost-benefit, quality, supplier relationship, and risk control.
Main Results:
- The integrated FAHP-TOPSIS model achieved a 23% improvement in consistency ratios.
- Empirical validation showed a closeness coefficient of 0.6651, placing the enterprise at the 73rd industry percentile.
- Sensitivity analysis confirmed model robustness with 96.3% ranking stability; 91.3% accuracy in identifying performance gaps.
Conclusions:
- The developed multi-dimensional model offers enhanced analytical capabilities for strategic procurement in power enterprises.
- The framework systematically addresses linguistic uncertainty and integrates diverse stakeholder objectives.
- It provides a robust tool for continuous improvement and informed decision-making in the energy sector.
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