A purchasing portfolio model for the commercial construction industry: a case study in a mega mall

Abstract

The procurement phase is known as a major component of engineering, procurement and construction (EPC) projects. One of the main reasons for the lack of timely completion of projects and creating additional costs is the poor performance of companies in this phase. The complexity of the purchasing process arises from a wide variety of project purchasing items and their suppliers. A purchasing portfolio model (PPM) has been developed based on the Kraljic model in the context of multi-criteria decision-making. The proposed hybrid model consists of a combination of DEMATEL and ANP (DANP) and VIKOR. The contribution of the work presents a hybrid MCDM method to clarify the interactive relationships among the criteria, Development of the Application Range of the Kraljic portfolio model, and a managerial tool for solving classification issues. Our study outcomes verified by a real Mall project and can be used by project professionals and academic researchers.

Keywords:

• Construction industry
• procurement
• purchasing portfolio model
• Kraljic’s matrix
• DEMATEL
• ANP
• VIKOR

Additional information

Notes on contributors

Arad Ghanbarizadeh

Arad Ghanbarizadeh received his M.Sc. in Industrial Engineering from University of Tehran, Tehran, Iran in 2012. Currently, he is a Ph.D. Candidate, Interdisciplinary Program in Industrial Engineering and Project Management, Kish International Campus, University of Tehran, Iran. Before joining this position, he was working as an Industrial Engineer at a Construction enterprise called Pars Mica Kish. His responsibility includes planning and controlling construction projects. His research interest includes scheduling and sequencing of operations in different phases of the project, especially the purchasing and procurement phase, and construction supply chain management.

Jafar Heydari

Jafar Heydari is an Associate Professor in the School of Industrial Engineering, University of Tehran. His main areas of research interests include supply chain coordination, contract theory, green SCM, production planning and purchasing and supply management. His works appear in European Journal of Operational Research, Decision Support Systems, International Journal of Production Economics, Transportation Research Part E, Transportation Research Part D, Computers and Operations Research, Journal of Cleaner Production, Expert Systems with Applications, and Computers and Industrial Engineering.

Jafar Razmi

Jafar Razmi is a Professor in the School of Industrial Engineering at the University of Tehran, Tehran, Iran. He received his Master’s degree from the University of Ottawa, Canada and his Ph.D. from University of Bradford, UK. Dr. Razmi also has teaching experience in the UK and Canada. Recently, he started a research collaboration at the University of Windsor and Ryerson University in Canada. He teaches undergraduate and graduate courses in Industrial Engineering and School of Business. He has published over 130 papers in peer-reviewed journals and published more than 90 papers in conferences. His research interests include supply chain management, multi-attribute decision making, production planning and control, Lean Six Sigma and performance assessment and improvement.

Ali Bozorgi-Amiri

Ali Bozorgi-Amiri is an Assistant Professor in the School of Industrial Engineering, University of Tehran, Iran. His research interests include sustainable and resilient supply chain design, purchasing and supply management, disaster relief logistics, multi-criteria decision-making techniques and uncertain programming. He has published several papers in the related field, in refereed journals and conferences.