Asian Journal of Research in Business Economics and Management
Year : 2014, Volume : 4, Issue : 11
First page : ( 129) Last page : ( 139)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2014.00979.7

Selection of Shipyard to Build Dynamic Search Vessels using Analytical Methods

Sundara M S Shama

D-II/187, Ground floor, Kaka Nagar Dr Zakir Hussain Marg, New Delhi 110003. msssundara@gmail.com

Abstract

Selection of most suitable option amongst available options is one of the most common decision making problem encountered by decision makers. During such decision making process which essentially involves qualitative and quantitative multi-criteria selection, a tradeoff between tangible and intangible factors is essential to select the best amongst the equals. In this case study, a shipping company is planning to order building of two vessels and put them to sea within next two years. There are multiple shipyards, both domestic and foreign, interested in the contract. One of the shipyard has also offered a semi-built ship, of similar use, at a discounted price and willing to build the second vessel on same design or as per company's requirement. The company has to evaluate the alternate options and select the most suitable option and shipyard. This study illustrates formulating an analytical model and employing analytical methods like AHP and Goal programming in practical situations. The results exhibit that the selection process using analytical methods would be more realistic and trustworthy than intuitive, non analytical comparison methods.

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Keywords

Decision making, Shipyard selection, Benchmarking, Analytical method, Analytic Hierarchy Process (AHP), Goal programming.

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