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

Authors: Aries Susanty; Ardian Bagus Putranto; Ferry Jie

Addresses: Department of Industrial Engineering, Diponegoro University, Semarang, 50275, Indonesia ' Department of Industrial Engineering, Diponegoro University, Semarang, 50275, Indonesia ' School of Business IT and Logistics, College of Business, RMIT University, Melbourne VIC 3001, Australia

Abstract: 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.

Keywords: supplier selection; Taguchi methods; loss function; analytical network process; ANP; multi-choice goal programming; MCGP; optimisation.

DOI: 10.1504/IJASM.2014.061454

International Journal of Agile Systems and Management, 2014 Vol.7 No.2, pp.155 - 178

Received: 08 Jul 2013
Accepted: 23 Dec 2013

Published online: 26 May 2014 *

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