A Case Study of Integrating the Taguchi Loss Function and Topsis Method to Select an Optimal Supplier in a Manufacturing Industry

Supplier selection is a important issue in supply chain management. The manufacturer s spends more than 60% of its total sales in on purchased items. In today s highly competitive global operating environment, it is impossible to produce low-cost, high quality products successfully without satisfactory suppliers. Therefore selecting a supplier is a tremendous importance. Decision maker always consider many criteria in supplier selection problem to find their best supplier. Hence supplier selection problem belong to Multi Criteria Decision Making (MCDM).There are many tools to select a supplier in a manufacturing industry. This paper presents integration the taguchi loss function and topsis method to select an optimal supplier in supply chain management.