Formulas for Choosing the Most Economically Advantageous Tender - a Comparative Study (Part 1)
Summary
Choosing a supplier is a significant part of any procurement process.
Usually, if the award criteria is not only price, it involves an evalua-
tion of bids and ranking them by their score. The score is calculated
according to a formula that takes as an input price, quality and their
respective weights. The main objective of this research is to review
and compare different formulas used in the procurement process. I
study both relative and absolute formulas with particular emphasis
on strengths and weaknesses of these 2 approaches.