Bhagyashree et al., International Journal of Advanced Research in Innovative Discoveries in Engineering and Applications[IJARIDEA] Vol.2, Issue 2,27 April 2017, pg. 9-14
Application Of Analytic Hierarchy Process And Artificial Neural Network In Bid Decision Making Bhagyashree1,B Raghavendhra K Holla2, Kiran Kumar Shetty M3, A S Vasudev Rao4 1
Assistant Professor, Department of Civil Engineering, Manipal Institute of Technology, Manipal University, Manipal, India 2 Assistant Professor(Sr. scale), Department of Civil Engineering, Manipal Institute of Technology, Manipal University, Manipal, India 3 Professor,Department of Civil Engineering, Manipal Institute of Technology, Manipal University, Manipal University, Manipal, India 4 Sr.Professor,TAPMI, Manipal University , Manipal
Abstract— An appropriate decision to bid initiates all bid preparation steps. Selective bidding will reduce the number of proposals to be submitted by the contractor and saves tender preparation time which can be utilized for refining the estimated cost. Usually in industrial engineering applications final decision will be based on the evaluation of many alternatives. This will be a very difficult problem when the criteria are expressed in different units or the pertinent data are not easily quantifiable. This paper emphasizes on the use of Analytic Hierarchy Process(AHP) for analyzing the risk degree of each factor, so that decision the can be taken accordingly in deciding an appropriate bid.AHP helps to decide the best solution from various selection criteria.The study also focuses on suggesting a much broader applicability of AHP and ANN techniques on decisions of bidding. Keywords— Analytic Hierarchy Process(AHP), Artificial Neural Network(ANN), Consistency Index(CI), Consistency Ratio(CR), Random Index(RI), Risk degree. I.
INTRODUCTION
Contractors in the construction industry earncontracts either through direct negotiation or competitive bidding. Usually competitive bidding is employed, wherethe main award criteria are technicalability and lowest bid price. In the present competitive construction industry scenario, the important decision that has to be made by any contractor who is competing in the market is to decide on-which price to bid for when a serious invitation is received. Moreover, this decision will require simultaneous assessment of large number of alternative factors. The decision to bid/no bid requires an understanding of factors affecting the decision [1]. Various factors affecting bid decision will be discovered and then analyzed to investigate theirrelativeinfluence and significance. A questionnaire survey is carried out to recognize the importance and interrelationship among thefactors and analyse them using AHP and rank the factors. AHP creates a hierarchy or ranking of all the decision parameters bycomparing each pair of items which will be depicted as a matrix. Paired comparisons incorporate weighted scores that can gauge the significance of parameters. The aspiration is to examine how bid/no bid decisions are accessed by various strategies of contractors.The purpose of applying AHP and ANNis to optimize decision making, when a contractor is confronted with a fusion of qualitative, quantitative and conflicting factors under consideration [2]. II. LITERATURE REVIEW
An easy way to comply with the conference paper formatting requirements is to use this document as a template and simply type your text into it. Alexander et al. (2012) [2] studied decision-making using the Analytic Hierarchy Process (AHP). AHP makes use of the ingenuity of decision makers to form a disintegration of the problems into hierarchies. For decision alternatives, the hierarchy can be employed to formulate ratio-scaled measures and a 9 © 2017, IJARIDEA All Rights Reserved