ANALYSIS OF PROCUREMENT POLICY FOR ROAD CONSTRUCTION BUSINESS

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Jittra Rukijkanpanich
Supisara Pandara

Abstract

The procurement policy for machinery is important for the smooth operation of the road construction project.  The policy analysis should cover both quantitative and qualitative factors which will be a better analysis than focusing on only quantitative factors. The objective of this research paper was to illustrate the policy analysis by using the analytic hierarchy process and the results to be determined as an organization's policy. The research has created a hierarchical decision structure consisting of five main criteria, six sub-criteria, and two alternative policies. The main criteria are machinery cost, maintainability, age, the ability of service providers, and economic value. Alternative policies include a new machine purchase policy and machinery restoration policyFor a case study of grader cars, the result of the machine replacement analysis showed that it was accepting the machinery restoration policy for all graders, which was different from the analysis results of the hierarchical analysis process, grader cars with 19-25 years of work, choose a new machinery purchase policy with significant weight 0.583 and grader cars with 3 to 5 years of work, choose machinery restoration policy with a significant weight of 0.504. The main criteria that were of the most important are the cost of machinery and ease of maintenance, with a significant weight of 0.381 and 0.421, respectively. The sub-criteria, fines from late delivery, and technological age had a significant weight of 0.592 and 0.750 respectively. Moreover, the use of machinery restoration policy resulted in the improvement of the grader cars to the availability values ​​from 69% to 81.71%

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Research Articles

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