Optimal Supply Vendor Selection Model for LNG Plant Projects Using Fuzzy-TOPSIS Theory

Woosik Jang, Hwa Uk Hong, Seung H. Han, Seung Won Baek

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

Interest in clean energy has led to increased international demand for liquefied natural gas (LNG), and the development of LNG plants as megaprojects is also expected to rise. In these megaprojects, the procurement phase is crucial in terms of costs and ripple effects in subsequent phases. If unexpected problems with supply vendors arise, then redesign, reprocurement, and reconstruction are often needed. Although many studies have been conducted on vendor selection, most have focused on identifying evaluation criteria from a general perspective. Existing models are still lacking a comprehensive approach that combines both quantitative and qualitative content to extract the priority level from a pool of candidate supply vendors, particularly for LNG plant projects. Seven evaluation criteria that reflect the uniqueness of LNG plants are identified in the literature and expert interviews. The suggested model can consider multiple scales for each criterion, as well as uncertainty in experts' opinions, using fuzzy-technique for order preference by similarity to ideal solution (TOPSIS) to select optimal vendors. The model is validated through case studies, showing that the proposed model is worthwhile to enhance the reliability of vendor selection by reflecting multiple participants and criteria, such as vendors' technical abilities, experience, quality control, and long-term relationships.

Original languageEnglish
Article number04016035
JournalJournal of Management in Engineering
Volume33
Issue number2
DOIs
Publication statusPublished - 2017 Mar 1

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Gas plants
Liquefied natural gas
Quality control
Vendors
Selection model
Vendor selection
Costs
Evaluation criteria

All Science Journal Classification (ASJC) codes

  • Industrial relations
  • Engineering(all)
  • Strategy and Management
  • Management Science and Operations Research

Cite this

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Optimal Supply Vendor Selection Model for LNG Plant Projects Using Fuzzy-TOPSIS Theory. / Jang, Woosik; Hong, Hwa Uk; Han, Seung H.; Baek, Seung Won.

In: Journal of Management in Engineering, Vol. 33, No. 2, 04016035, 01.03.2017.

Research output: Contribution to journalArticle

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