{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,4,20]],"date-time":"2026-04-20T22:54:45Z","timestamp":1776725685469,"version":"3.51.2"},"reference-count":46,"publisher":"Emerald","issue":"8","license":[{"start":{"date-parts":[[2010,8,31]],"date-time":"2010-08-31T00:00:00Z","timestamp":1283212800000},"content-version":"tdm","delay-in-days":0,"URL":"https:\/\/www.emerald.com\/insight\/site-policies"}],"content-domain":{"domain":[],"crossmark-restriction":false},"short-container-title":[],"published-print":{"date-parts":[[2010,8,31]]},"abstract":"<jats:sec><jats:title content-type=\"abstract-heading\">Purpose<\/jats:title><jats:p>The purpose of this paper is to develop a decision model to help decision makers with selection of the appropriate supplier.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Design\/methodology\/approach<\/jats:title><jats:p>Supplier selection is a multi\u2010criteria decision\u2010making process encompassing various tangible and intangible factors. Both risks and benefits of using a vendor in supply chain are identified for inclusion in the evaluation process. Since these factors can be objective and subjective, a hybrid approach that applies to both quantitative and qualitative factors is used in the development of the model. Taguchi loss functions are used to measure performance of each supplier candidate with respect to the risks and benefits. Analytical hierarchy process (AHP) is used to determine the relative importance of these factors to the decision maker. The weighted loss scores are then calculated for each supplier by using the relative importance as the weights. The composite weighted loss scores are used for ranking of the suppliers. The supplier with the smallest loss score is recommended for selection.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Findings<\/jats:title><jats:p>Inclusion of both risk and benefit categories in the evaluation process provides a comprehensive decision tool.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Practical implications<\/jats:title><jats:p>The proposed model provides guidelines for supply chain managers to make an informed decision regarding supplier selection.<\/jats:p><\/jats:sec><jats:sec><jats:title content-type=\"abstract-heading\">Originality\/value<\/jats:title><jats:p>Combining Taguchi loss function and AHP provides a novel approach for ranking of potential suppliers for outsourcing purposes.<\/jats:p><\/jats:sec>","DOI":"10.1108\/02635571011077861","type":"journal-article","created":{"date-parts":[[2010,8,28]],"date-time":"2010-08-28T07:17:40Z","timestamp":1282979860000},"page":"1251-1269","source":"Crossref","is-referenced-by-count":64,"title":["Application of AHP and Taguchi loss functions in supply chain"],"prefix":"10.1108","volume":"110","author":[{"given":"Sharon M.","family":"Ordoobadi","sequence":"first","affiliation":[]}],"member":"140","reference":[{"key":"key2022031120431891800_b1","doi-asserted-by":"crossref","unstructured":"Albino, V. and Garavelli (1998), \u201cA neural network application to subcontractor rating in construction firms\u201d, International Journal of Project Management, Vol. 16 No. 1, pp. 9\u201014.","DOI":"10.1016\/S0263-7863(97)00007-0"},{"key":"key2022031120431891800_b2","unstructured":"Barbarosoglu, G. and Yazagac, T. (1997), \u201cAn application of the analytic hierarchy process to the supplier selection problem\u201d, Production & Inventory Management Journal, Vol. 38, pp. 14\u201021 (1st quarter)."},{"key":"key2022031120431891800_b3","doi-asserted-by":"crossref","unstructured":"Bayazit, O. (2006), \u201cUse of analytic network process in vendor selection decisions\u201d, Benchmarking: An International Journal, Vol. 13 No. 5, pp. 566\u201079.","DOI":"10.1108\/14635770610690410"},{"key":"key2022031120431891800_b4","unstructured":"Besterfield, D.H., Besterfield\u2010Michna, C., Besterfield, G.H. and Besterfield\u2010Sacre, M. (2003), Total Quality Management, Pearson Education, Upper Saddle River, NJ."},{"key":"key2022031120431891800_b5","unstructured":"Chalos, P. (1995), \u201cCosting, control, and strategic analysis in outsourcing decisions\u201d, Journal of Cost Management, Winter, pp. 31\u20107."},{"key":"key2022031120431891800_b6","doi-asserted-by":"crossref","unstructured":"Chan, C.T. and Chin, K.S. (2007), \u201cKey success factors of strategic sourcing: an empirical study of the Hong Kong toy industry\u201d, Industrial Management & Data Systems., Vol. 107 No. 9, pp. 1391\u2010416.","DOI":"10.1108\/02635570710834027"},{"key":"key2022031120431891800_b7","doi-asserted-by":"crossref","unstructured":"Chaudhry, S.S., Forest, F.G. and Zydiak, J.L. (1993), \u201cVendor selection with price breaks\u201d, European Journal of Operations Research, Vol. 70, pp. 52\u201066.","DOI":"10.1016\/0377-2217(93)90232-C"},{"key":"key2022031120431891800_b8","doi-asserted-by":"crossref","unstructured":"Choy, K.L., Fan, K.H. and Lo, V. (2003), \u201cDevelopment of an intelligent customer\u2010supplier relationship management system: the application of case\u2010based reasoning\u201d, Industrial Management & Data Systems., Vol. 103 No. 4, pp. 263\u201074.","DOI":"10.1108\/02635570310470665"},{"key":"key2022031120431891800_b9","doi-asserted-by":"crossref","unstructured":"De Boer, L., Labro, E. and Morlacchi, P. (2001), \u201cA review of methods supporting supplier selection\u201d, European Journal of Purchasing & Supply Management, Vol. 7, pp. 75\u201089.","DOI":"10.1016\/S0969-7012(00)00028-9"},{"key":"key2022031120431891800_b10","unstructured":"Ealey, L.A. (1994), Quality by Design: Taguchi Methods and US Industry, ASI Press, Dearborn, MI."},{"key":"key2022031120431891800_b11","doi-asserted-by":"crossref","unstructured":"Festervand, T., Kethley, B. and Waller, B. (2001), \u201cThe marketing of industrial real estate: application of Taguchi loss functions\u201d, Journal of Multicriteria Decision Analysis., Vol. 10 No. 4, pp. 219\u201028.","DOI":"10.1002\/mcda.304"},{"key":"key2022031120431891800_b12","unstructured":"Friedman, R. (1991), \u201cOutsourcing as a way to reduce major costs\u201d, The Office, pp. 70\u20102."},{"key":"key2022031120431891800_b14","doi-asserted-by":"crossref","unstructured":"Ghodsypour, S.H. and O'Brien, C. (1998), \u201cA decision support system for supplier selection using an integrated analytic hierarchy process and linear programming\u201d, International Journal of Production Economics, Vol. 56, pp. 199\u2010212.","DOI":"10.1016\/S0925-5273(97)00009-1"},{"key":"key2022031120431891800_b13","doi-asserted-by":"crossref","unstructured":"Gonzalez, R., Gasco, J. and Liopis, J. (2010), \u201cInformation systems outsourcing reasons and risks: a new assessment\u201d, Industrial Management & Data Systems, Vol. 110 No. 2, pp. 284\u2010303.","DOI":"10.1108\/02635571011020359"},{"key":"key2022031120431891800_b15","doi-asserted-by":"crossref","unstructured":"Gottschalk, P. and Solli\u2010Saether, H. (2006), \u201cMaturity model for IT outsourcing relationships\u201d, Industrial Management & Data Systems, Vol. 106 No. 2, pp. 200\u201012.","DOI":"10.1108\/02635570610649853"},{"key":"key2022031120431891800_b16","doi-asserted-by":"crossref","unstructured":"Holt, G.D. (1998), \u201cWhich contractor selection methodology?\u201d, International Journal of Project Management, Vol. 16 No. 3, pp. 153\u201064.","DOI":"10.1016\/S0263-7863(97)00035-5"},{"key":"key2022031120431891800_b17","doi-asserted-by":"crossref","unstructured":"Hui, Y.V. and Leung, L.C. (1994), \u201cOptimal economic tool regrinding with Taguchi quality loss function\u201d, The Engineering Economist, Vol. 39 No. 4, pp. 313\u201031.","DOI":"10.1080\/00137919408903132"},{"key":"key2022031120431891800_b18","doi-asserted-by":"crossref","unstructured":"Jennings, D. (2002), \u201cStrategic sourcing: benefits, problems, and a contextual model\u201d, Management Decision, Vol. 40 No. 1, pp. 26\u201034.","DOI":"10.1108\/00251740210413334"},{"key":"key2022031120431891800_b19","doi-asserted-by":"crossref","unstructured":"Kirytopoulos, K., Leopoulos, V. and Voulgaridou, D. (2008), \u201cSupplier selection in pharmaceutical industry: an analytic network process approach\u201d, Benchmarking: An International Journal, Vol. 15 No. 4, pp. 494\u2010516.","DOI":"10.1108\/14635770810887267"},{"key":"key2022031120431891800_b20","doi-asserted-by":"crossref","unstructured":"Kremic, T., Tukel, O. and Rom, W. (2006), \u201cOutsourcing decision support: a survey of benefits, risks, and decision factors\u201d, Supply Chain Management: An International Journal, Vol. 11 No. 6, pp. 467\u201082.","DOI":"10.1108\/13598540610703864"},{"key":"key2022031120431891800_b21","doi-asserted-by":"crossref","unstructured":"Leavy, B. (2004), \u201cOutsourcing strategies: opportunities and risks\u201d, Strategy & Leadership, Vol. 32 No. 6, pp. 20\u20105.","DOI":"10.1108\/10878570410568875"},{"key":"key2022031120431891800_b22","doi-asserted-by":"crossref","unstructured":"Liu, J., Ding, F.Y. and Lall, V. (2000), \u201cUsing data envelopment analysis to compare suppliers for supplier selection and performance improvement\u201d, Supply Chain Management: An International Journal, Vol. 5 No. 3, pp. 143\u201050.","DOI":"10.1108\/13598540010338893"},{"key":"key2022031120431891800_b23","unstructured":"McCarthy, E. (1996), \u201cTo outsource or not to outsource\u2010what's right for you\u201d, Pension Management, Vol. 32 No. 4, pp. 12\u201017."},{"key":"key2022031120431891800_b24","doi-asserted-by":"crossref","unstructured":"Masella, C. and Rangone, A. (2000), \u201cA contingent approach to the design of vendor selection systems for different types of co\u2010operative customer\/supplier relationships\u201d, International Journal of Operations & Production Management, Vol. 20 No. 1, pp. 70\u201084.","DOI":"10.1108\/01443570010287044"},{"key":"key2022031120431891800_b25","doi-asserted-by":"crossref","unstructured":"Ng, S.T. and Skitmore, R.M. (1995), \u201cCP\u2010DSS: decision support system for contractor prequalification\u201d, Civil Engineering Systems: Decision Making Problem Solving, Vol. 12 No. 2, pp. 133\u201060.","DOI":"10.1080\/02630259508970164"},{"key":"key2022031120431891800_b26","doi-asserted-by":"crossref","unstructured":"Nydick, R.L. and Hill, R.P. (1992), \u201cUsing the analytic hierarchy process to structure the supplier selection procedure\u201d, International Journal of Purchasing & Materials Management, Vol. 28 No. 2, pp. 31\u20106.","DOI":"10.1111\/j.1745-493X.1992.tb00561.x"},{"key":"key2022031120431891800_b27","unstructured":"Parasuraman, A., Zeithaml, V.A. and Berry, L.L. (1988), \u201cSERVQUAL: a multiple\u2010item scale for measuring consumer perceptions of service quality\u201d, Journal of Retailing, Vol. 64 No. 1, pp. 12\u201040."},{"key":"key2022031120431891800_b30","doi-asserted-by":"crossref","unstructured":"Percin, S. (2006), \u201cAn application of the integrated AHP\u2010PGP model in supplier selection\u201d, Measuring Business Excellence, Vol. 10 No. 4, pp. 34\u201049.","DOI":"10.1108\/13683040610719263"},{"key":"key2022031120431891800_b28","unstructured":"Raistrick, M. (1993), \u201cOutsourcing and communications facilities management\u201d, British Telecommunications Engineering, Vol. 12 No. 1, pp. 71\u20105."},{"key":"key2022031120431891800_b29","doi-asserted-by":"crossref","unstructured":"Ramanathan, R. (2007), \u201cSupplier selection problem: integrating DEA with the approaches of total cost of ownership and AHP\u201d, Supply Chain Management: An International Journal, Vol. 12 No. 4, pp. 258\u201061.","DOI":"10.1108\/13598540710759772"},{"key":"key2022031120431891800_b31","unstructured":"Saaty, T.L. (1995), Decision Making for Leaders: The Analytic Hierarchy Process for Decisions in Complex World, RWS, Pittsburgh, PA."},{"key":"key2022031120431891800_b32","unstructured":"Sarkis, J. and Talluri, S. (2000), \u201cA model for strategic supplier selection\u201d, in Leenders, M. (Ed.), Proceedings of the 9th International IPSERA Conference, Richard Ivey Business School, London, pp. 652\u201061."},{"key":"key2022031120431891800_b33","doi-asserted-by":"crossref","unstructured":"Sevkli, M., Koh, S.C., Zaim, S., Demirbag, M. and Tatoglu, E. (2008), \u201cHybrid analytical hierarchy process model for supplier selection\u201d, Industrial Management & Data Systems, Vol. 108 No. 1, pp. 122\u201042.","DOI":"10.1108\/02635570810844124"},{"key":"key2022031120431891800_b34","doi-asserted-by":"crossref","unstructured":"Shih, K.H., Hung, H.F. and Lin, B. (2009), \u201cSupplier evaluation model for computer auditing and decision\u2010making analysis\u201d, Kybernetes, Vol. 38 No. 9, pp. 1439\u201060.","DOI":"10.1108\/03684920910991469"},{"key":"key2022031120431891800_b35","doi-asserted-by":"crossref","unstructured":"Sommer, R.A. (2003), \u201cBusiness process flexibility: a driver for outsourcing\u201d, Industrial Management & Data Systems, Vol. 103 No. 3, pp. 177\u201083.","DOI":"10.1108\/02635570310465652"},{"key":"key2022031120431891800_b36","doi-asserted-by":"crossref","unstructured":"Soukup, W.R. (1987), \u201cSupplier selection strategies\u201d, International Journal of Purchasing and Materials Management, Vol. 23 No. 3, pp. 7\u201012.","DOI":"10.1111\/j.1745-493X.1987.tb00180.x"},{"key":"key2022031120431891800_b37","doi-asserted-by":"crossref","unstructured":"Tafti, M.H.A. (2005), \u201cRisks factors associated with offshore IT outsourcing\u201d, Industrial Management & Data Systems, Vol. 105 No. 5, pp. 549\u201060.","DOI":"10.1108\/02635570510599940"},{"key":"key2022031120431891800_b38","unstructured":"Taguchi, G. and Hsiang, T.C. (1989), Quality Engineering in Production Systems, McGraw\u2010Hill, New York, NY."},{"key":"key2022031120431891800_b39","doi-asserted-by":"crossref","unstructured":"Taner, T. and Anthony, J. (2000), \u201cThe assessment of quality in medical diagnostic tests: a comparison of ROC\/Youden and Taguchi methods\u201d, International Journal of Health Care Quality Assurance, Vol. 13\/7, pp. 300\u20107.","DOI":"10.1108\/09526860010378744"},{"key":"key2022031120431891800_b40","doi-asserted-by":"crossref","unstructured":"Taner, T. and Anthony, J. (2006), \u201cApplying Taguchi methods to health care\u201d, Leadership in Health Services, Vol. 19 No. 1, pp. 26\u201035.","DOI":"10.1108\/13660750610643831"},{"key":"key2022031120431891800_b41","unstructured":"Timmerman, E. (1986), \u201cAn approach to vendor performance evaluation\u201d, Journal of Purchasing and Supply Management, Vol. 1, pp. 27\u201032."},{"key":"key2022031120431891800_b42","doi-asserted-by":"crossref","unstructured":"Wang, G., Huang, S.H. and Dismukes, J.P. (2005), \u201cManufacturing supply chain design and evaluation\u201d, International Journal of Advanced Manufacturing Technology, Vol. 25 No. 1, pp. 93\u2010100.","DOI":"10.1007\/s00170-003-1791-y"},{"key":"key2022031120431891800_b43","doi-asserted-by":"crossref","unstructured":"Weber, C.A. and Desai, A. (1996), \u201cDetermination of paths to vendor market efficiency using parallel co\u2010ordinates representation: a negotiation tool for buyers\u201d, European Journal of Operations Research, Vol. 90, pp. 142\u201055.","DOI":"10.1016\/0377-2217(94)00336-X"},{"key":"key2022031120431891800_b44","doi-asserted-by":"crossref","unstructured":"Weber, C.A., Current, J.R. and Desai, A. (1998), \u201cNon\u2010cooperative negotiation strategies for vendor selection\u201d, European Journal of Operations Research, Vol. 108, pp. 208\u201023.","DOI":"10.1016\/S0377-2217(97)00131-8"},{"key":"key2022031120431891800_b45","doi-asserted-by":"crossref","unstructured":"Weber, C.A., Current, J.R. and Desai, A. (2000), \u201cAn optimization approach to determining the number of vendors to employ\u201d, Supply Chain Management: An International Journal, Vol. 5 No. 2, pp. 90\u20108.","DOI":"10.1108\/13598540010320009"},{"key":"key2022031120431891800_b46","doi-asserted-by":"crossref","unstructured":"Yang, C.C. and Chen, B.S. (2006), \u201cSupplier selection using combined analytical hierarchy process and grey relational analysis\u201d, Supply Chain Management: An International Journal, Vol. 17 No. 7, pp. 926\u201041.","DOI":"10.1108\/17410380610688241"}],"container-title":["Industrial Management &amp; Data Systems"],"original-title":[],"language":"en","link":[{"URL":"http:\/\/www.emeraldinsight.com\/doi\/full-xml\/10.1108\/02635571011077861","content-type":"unspecified","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/02635571011077861\/full\/xml","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/www.emerald.com\/insight\/content\/doi\/10.1108\/02635571011077861\/full\/html","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2025,7,24]],"date-time":"2025-07-24T23:38:26Z","timestamp":1753400306000},"score":1,"resource":{"primary":{"URL":"http:\/\/www.emerald.com\/imds\/article\/110\/8\/1251-1269\/175839"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2010,8,31]]},"references-count":46,"journal-issue":{"issue":"8","published-print":{"date-parts":[[2010,8,31]]}},"alternative-id":["10.1108\/02635571011077861"],"URL":"https:\/\/doi.org\/10.1108\/02635571011077861","relation":{},"ISSN":["0263-5577"],"issn-type":[{"value":"0263-5577","type":"print"}],"subject":[],"published":{"date-parts":[[2010,8,31]]}}}