Journal of Applied Sciences1812-56541812-5662Asian Network for Scientific Information10.3923/jas.2009.4240.4246SadighA.N.bt. ZulkifliNorzimaHongT.S.AbdolshahM.122009924Assessing 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.]]>Chou, Y.M.,1994Dickson, G.W.,1966Qing-e, W. and G. Xiao-Min,2007Hou, J. and D. Su,2007Huang, D.Y. and R.F. Lee,1995Hui-Ming, Z.,2007Kethley, R.B.,2008Kokangul, A. and Z. Susuz,2009Lee, A.H.I.,2009Leung, B.P.K. and F.A. Spiring,2004Linn, R.J., F. Tsung and L.W.C. Ellis,2006Pi, W.N. and C. Low,2006Sanayei, A., S.F. Mousavi, M.R. Abdi and A. Mohaghar,2008Shu, M.H., H.C. Wu and B.M. Hsu,2005Teeravaraprug, J.,2008Teng, S.G. and H. Jaramillo,2005Tseng, S.T. and T.Y. Wu,1991Xia, W. and Z. Wu,2007Pearn, W.L. and S. Kotz,2006Ryan, T.P.,1989