Vendor and logistics provider selection in the construction sector: A probabilistic preferences composition approach

Abstract

The main purpose of the present work is to present an application of the probabilistic preferences composition method to the vendor and carrier selection process in the construction sector of the Southern Region of Rio de Janeiro state, in Brazil. The traditional measures associated with vendor and carrier evaluation are considered in the model and are combined through a preferences composition, which considers the options’ uncertainties. In the application, we considered three different suppliers of sand for construction and three different logistics providers, two of them outsourced. Our intention was to verify if outsourcing can be considered a better solution, as proposed by many authors. The results show that outsourcing is the best option for different probabilistic composition points of view as well as when the overall evaluation is obtained by average composition.