Tender evaluation by fuzzy sets

The process of evaluating tenders is considered to be largely dependent on subjective judgment when cost is not the only criterion used. A systematic procedure based on fuzzy set theory and multicriteria modeling is proposed for the selection of bid contracts. The proposed procedure is suitable for a general tender evaluation process that may involve many decision-making parties and noninteractive multiple criteria. Illustrative examples are given for cases involving three major criteria: cost, present bid information, and past experience of tenderers.