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

Chin Nung Liao, Hsing Pei Kao

Research output: Contribution to journalArticlepeer-review

145 Scopus citations

Abstract

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.

Original languageEnglish
Pages (from-to)571-577
Number of pages7
JournalComputers and Industrial Engineering
Volume58
Issue number4
DOIs
StatePublished - May 2010

Keywords

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

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