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Integrated Supplier Selection Model using ANP, Taguchi Loss Function and PROMETHEE Methods
Keywords
ANP, MCDM, Supplier selection, Taguchi loss function, PROMETHEE
Abstract
Supplier evaluation and selection process is one of the most important decision problem for companies. Supplier selection is a Multi-criteria decision making (MCDM) process, since the problem involves both tangible, intangible and also conflicting criteria. In this study a group of main criteria; “quality”, “delivery”, “price”, “environmental health”, “financial status”, “managerial capabilities” and “working conditions” are searched for their interrelations and importance degrees. Analytic network process (ANP) is used for calculations of the weights of the criteria and these weights have been transferred to quality loss via Taguchi loss functions. A case study in automotive industry is presented and finally a comparison with PROMETHEE method is discussed. This study presents a delicate and precise solution to a complex selection problem by comparing traditional and non-traditional methods.