An integrative supplier selection model using Taguchi loss function, TOPSIS and multi criteria goal programming

Some of the key factors affecting the selection of supplier are price, quality, delivery, satisfaction, and warranty degree. The present paper is an extension of previous related work to select the appropriate supplier. This paper deals with an integrative approach considering Taguchi’s loss function, Technique for Order preference by similarity to ideal solution (TOPSIS) and Multi criteria goal programming. The model is split up into three phases. In the first phase, the quality losses are identified using Taguchi’s loss function. In the second phase, suitable factors are identified with different weights from TOPSIS and in the third phase, a goal programming model is developed to identify the best performing supplier with the weights and the loss associates. The purpose of this paper is to integrate different criteria levels to select relatively better performing supplier. A case is also presented and finally a comparison with data envelopment analysis (DEA) is discussed.