Fine Tuning a Bayesian Network and Fairly Allocating Resources to Improve Procurement Performance
Procurement is one of the most important activities in any organization. Hence it is vital for an organization to track procurement practices. Through performance measurement, the organization will have a clear understanding on how it’s performing as well as the effect of any action that it makes towards improvement. In our previous work, we proposed a Bayesian Network (BN) model to measure the level of procurement performance in an organization. This paper extends that model in two ways. First it uses the Best-Worst Method (BWM) to adjust the impact of each KPI on the procurement performance according to its importance to the overall business strategy. Second is by using the relative importance of the KPIs, it demonstrates how procurement can be improved by re-allocating the available resources among the KPIs in a fair way.
KeywordsProcurement performance management Fair resource allocation Bayesian network
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