Bid Evaluation of Electric Equipment Based on VIKOR Method

Multiple criteria decision modeling is proposed for determining the most preferred bidding markup in a competitive bidding situation. This paper presents a new evaluation approach - VIKOR method - to solve the MCDM (multiple criteria decision making) problems with conflicting criteria or criteria of different units. Since this method provides a maximum "group utility" of the "majority" and a minimum of the individual regret of the "opponent", the obtained compromise solution could be readily accepted by the decision makers. Besides, The coefficients of weight for evaluation factors are obtained from the avail value of data reflecting the information entropy, by which the weight allocation is more reasonable. A numerical example is presented to illustrate the methodological issues in the bid evaluation and the numerical results show that the proposed approach is effective. This method can precisely demonstrate the bidding units' technological and economical characteristic.