L.A.R.G. supplier selection based on integrating house of quality, Taguchi loss function and M.O.P.A.

Abstract

Nowadays, companies are able to obtain the key to success in global competition by choosing the right suppliers who are more align with their strategies. It is clear that applying appropriate attitudes and criteria have a great importance in choosing suppliers in the process of decision-making by chain managers and especially purchasing managers. In this study tried to apply Lean, Agile, Resilient and Green (L.A.R.G.) approach in a model designed to select the consistence supplier. Accordingly, at first, while reviewing and exploiting the literature, the most main logistics needs of the company concerned in the light of the objectives that followed on the fields of the LARG attitudes, are refined and selected, then their degree of significance is determined through Multi-Objective Performance Analysis (M.O.P.A.). The house of quality (H.O.Q.) matrix is applied to determine the importance degree of the technical characteristics of the suppliers and Taguchi loss function is applied to determine the degree of their performance deviation from the target value in each one of the technical characteristics (ultimate judgment about their competency). The considered suppliers are ranked based on the results of the loss function analysis. A sensitivity analysis was conducted to analyse the impact of different conditions on suppliers’ ranking and validation of the ranking results were Satisfied by applying the T.O.P.S.I.S. method.