Optimisation of supplier selection with Taguchi loss function, analytic network process, and multi-choice goal programming

摘要

This study proposed an integrated method of the Taguchi loss function, ANP, and MCGP to select the best supplier. This study proposed six criteria and 19 of decision sub-criteria as qualitative and quantitative factors to select the best supplier. In the proposed method, each sub-criterion is assigned an importance weight through ANP analysis. Then the 19 of sub-criteria are incorporated into the Taguchi loss functions to estimate the total loss. In the final step, importance weight and estimated total loss of suppliers are incorporated into MCGP model to identify the best supplier.