Providing a DEA and AHP hybrid model to evaluate contractors’ performance (Case study: Zarand Iranian Steel Co. (ZISCO))

Regarding contractors are one of the fundamental features of construction and industrial projects, therefore the selection of contractors is one of the major decisions of managers and decision-makers. This paper uses the multi-criteria decision-making method Analytic Hierarchy Process (AHP) to incorporate the weightings of input and output variables into Data Envelopment Analysis (DEA) for evaluation and ranking of contractors (Zarand Iranian Steel Company). At first, according to previous research, the most effective and important evaluation indicators of contractors are selected, then in the proposed model with the AHP approach, seven input indicators and three output indicators are weighted and ranked, and the performance of 20 contractors from one of the company's projects is determined and ranked with the input-oriented CCR model. By applying this approach, decision-makers and practitioners can effectively compare operational efficiency between contractors, and therefore generate more informed and they can provide appropriate solutions to increase the efficiency of other contractors.