Supplier selection model using Taguchi loss function, analytical hierarchy process and multi-choice goal programming

In recent years, determining the best supplier has become a key strategic consideration in the competitive market. Since the decision commonly involves evaluating different criteria or attributes, supplier selection process is a multiple criteria decision-making (MCDM) problem. This study integrates the Taguchi loss function, analytical hierarchy process (AHP) and multi-choice goal programming (MCGP) model for solving the supplier selection problem. The advantage of this proposed method is that it allows decision makers to set multiple aspiration levels for the decision criteria. A numerical example of application is also presented.