Supplier evaluation and selection using revised Tagichi loss function.

Assessing quality as one of the main criteria for supplier selection is so important. Literature review showed that in order to evaluate the quality of suppliers, some methods such as rate of rejects, quality certification, easy to repair, reliability and process capability indices are so common. Th...

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Main Authors: Sadigh, Aghdas Naimi, Zulkifli, Norzima, Hong, Tang Sai, Abdolshah, Mohammad
Format: Article
Language:English
Published: Asian Network for Scientific Information 2009
Online Access:http://psasir.upm.edu.my/id/eprint/17743/
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author Sadigh, Aghdas Naimi
Zulkifli, Norzima
Hong, Tang Sai
Abdolshah, Mohammad
author_facet Sadigh, Aghdas Naimi
Zulkifli, Norzima
Hong, Tang Sai
Abdolshah, Mohammad
author_sort Sadigh, Aghdas Naimi
building UPM Institutional Repository
collection Online Access
description Assessing quality as one of the main criteria for supplier selection is so important. Literature review showed that in order to evaluate the quality of suppliers, some methods such as rate of rejects, quality certification, easy to repair, reliability and process capability indices are so common. These methods can assess just one aspect of an organization and are not appropriate tools for assessing the real quality of the product supplied by the supplier, while loss functions are suitable tools to evaluate the quality. To overcome this problem and because of features of revised Taguchi loss function, this study proposes the use of the revised Taguchi loss function for supplier evaluation and selection. After assessing the quality, using the expected value of the revised Taguchi loss function and integrating of this function with the cost of purchasing and transportation, a simple Linear Programming (LP) model will appear. A numerical example provides the explanation. This model is a very simple linear programming model with excellent estimation of quality, which integrates the quality of supplier, cost of purchasing and transportation costs.
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institution Universiti Putra Malaysia
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spelling upm-177432014-01-21T09:15:48Z http://psasir.upm.edu.my/id/eprint/17743/ Supplier evaluation and selection using revised Tagichi loss function. Sadigh, Aghdas Naimi Zulkifli, Norzima Hong, Tang Sai Abdolshah, Mohammad Assessing quality as one of the main criteria for supplier selection is so important. Literature review showed that in order to evaluate the quality of suppliers, some methods such as rate of rejects, quality certification, easy to repair, reliability and process capability indices are so common. These methods can assess just one aspect of an organization and are not appropriate tools for assessing the real quality of the product supplied by the supplier, while loss functions are suitable tools to evaluate the quality. To overcome this problem and because of features of revised Taguchi loss function, this study proposes the use of the revised Taguchi loss function for supplier evaluation and selection. After assessing the quality, using the expected value of the revised Taguchi loss function and integrating of this function with the cost of purchasing and transportation, a simple Linear Programming (LP) model will appear. A numerical example provides the explanation. This model is a very simple linear programming model with excellent estimation of quality, which integrates the quality of supplier, cost of purchasing and transportation costs. Asian Network for Scientific Information 2009 Article PeerReviewed Sadigh, Aghdas Naimi and Zulkifli, Norzima and Hong, Tang Sai and Abdolshah, Mohammad (2009) Supplier evaluation and selection using revised Tagichi loss function. Journal of Applied Sciences, 9 (24). pp. 4240-4246. ISSN 1812-5654; ESSN: 1812-5662 10.3923/jas.2009.4240.4246 English
spellingShingle Sadigh, Aghdas Naimi
Zulkifli, Norzima
Hong, Tang Sai
Abdolshah, Mohammad
Supplier evaluation and selection using revised Tagichi loss function.
title Supplier evaluation and selection using revised Tagichi loss function.
title_full Supplier evaluation and selection using revised Tagichi loss function.
title_fullStr Supplier evaluation and selection using revised Tagichi loss function.
title_full_unstemmed Supplier evaluation and selection using revised Tagichi loss function.
title_short Supplier evaluation and selection using revised Tagichi loss function.
title_sort supplier evaluation and selection using revised tagichi loss function.
url http://psasir.upm.edu.my/id/eprint/17743/
http://psasir.upm.edu.my/id/eprint/17743/