Abstract
The purchasing function directly affects the competitive ability of a firm. Purchasing managers need to periodically evaluate supplier performance in order to retain those suppliers who meet their requirement. Four attributes are frequently used as performance criteria. These attributes are quality, on-time delivery, price and service. An evaluation and selection system of suppliers using Taguchi loss functions is proposed in this paper based on these four attributes. These four attributes are transferred to the quality loss and combined to one decision variable for decision making. It is useful to make supplier evaluation and selection for promoting the competitive ability of a firm. An example of application to supplier evaluation and selection is also presented.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
C.L. Weber, J.R. Current, W.C. Benton (1991) Vendor Selection Criteria and Methods, Eur J Oper Res 50(1):2–18
P. Lyn, A. Unni, S. Frank (1994) Perceived Effectiveness of the Automotive Supplier Evaluation Process, Int J Oper Prod Manage 14(6):91–100
R.M. Monczka, S.J. Trecha (1988) Cost-based Supplier Performance Evaluation, J Purch Mater Manage, pp. 2–7, May 1988.
M.-H.C. Li (2003) Quality Loss Functions for the Measurement of Service Quality, Int J Adv Manuf Technol, 21:29–37
L. Ellram (1990) The Supplier Selection Decision in Strategic Partnerships, J Purch Mater Manage 26:8–14
P.A. Millen (1991) Supplier Evaluation Revisited, Purchasing 111:58–68
M.A. Youssef, M. Zairi, B. Mohanty (1996) Supplier Selection in an Advanced Manufacturing Technology Environment: An Optimization Model, Benchmarking Qual Manage Technol 3(4):60–72
T.H. Willis, C.R. Houston (1990) Vendor Requirements and Evaluation in a Just-in-Time Environment, Int J Oper Prod Manage 10(4):41–50
E. Timmerman (1990) An Approach to Vendor Performance Evaluation, J Purch Mater Manage, pp. 2–8, winter
K.N. Thompson (1990) Vendor Profile Analysis, National Association of Purchasing Management, pp. 11–18, January
K.N. Thompson (1991) Scaling Evaluative Criteria and Supplier Performance Estimates in Weighted Point Pre-purchase Decision Models, Int J Purch Mater Manage pp. 27–36
R.B. Kethley, B.D. Waller, T.A. Festervand (2002) Improving Customer Service in the Real Estate Industry: A Property Selection Model Using Taguchi Loss Functions, Total Qual Manage 13(6):739–748
Charles Quigley, Charles McNamara (1992) Evaluating Product Quality: An Application of the Taguchi Quality Loss Concept, Int J Purch Mater Manage 28(3):19–25
Phillip J. Ross, “Taguchi Techniques for Quality Engineering”, 2nd edn. McGraw, NY
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Pi, WN., Low, C. Supplier evaluation and selection using Taguchi loss functions. Int J Adv Manuf Technol 26, 155–160 (2005). https://doi.org/10.1007/s00170-003-1975-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00170-003-1975-5