4.7 Article

Supplier selection model using Taguchi loss function, analytical hierarchy process and multi-choice goal programming

Journal

COMPUTERS & INDUSTRIAL ENGINEERING
Volume 58, Issue 4, Pages 571-577

Publisher

PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.cie.2009.12.004

Keywords

Supplier selection; Multi-criteria decision-making; Taguchi loss functions; Analytical hierarchy process; Multi-choice goal programming

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In recent years, determining the best supplier has become a key strategic consideration in the competitive market. Since the decision commonly involves evaluating different criteria or attributes, supplier selection process is a multiple criteria decision-making (MCDM) problem. This study integrates the Taguchi loss function, analytical hierarchy process (AHP) and multi-choice goal programming (MCGP) model for solving the supplier selection problem. The advantage of this proposed method is that it allows decision makers to set multiple aspiration levels for the decision criteria. A numerical example of application is also presented. (C) 2009 Elsevier Ltd. All rights reserved.

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