Slide 2:
12/6/2008 2
Slide 3:
12/6/2008 3
Slide 4:
12/6/2008 4
Mathematical Model :
12/6/2008 5 Mathematical Model I. Loss via Taguchi loss functions
L (y)= k (y − m)2 L (y)= k1(y − m)2 or L (y)= k2 (y − m)2
Fig. Two-sided equal-specification Taguchi Fig. Two-sided Taguchi loss function loss function with specification preference
Mathematical Model :
12/6/2008 6 Mathematical Model II. Weighting via an AHP
Suppose that there are n criteria which need to be weighted for decision-making; then there are n(n −1)/2 judgments are needed. The comparison matrix for these n criteria can be expressed as where,
Wi =weight of ith criterion , Wj =weight of jth criterion and
III. Ranking the suppliers
the total loss of all the criteria to each supplier can be calculated by the following equation: n
Lossj = Σ WiCij
i=1 [ a11 a12 · · · a1n ]
[ a21 a22 · · · a2n ]
A = [ · · · ]
[ · · · ]
[ a31 a32 · · · a3n ] aij = Wi and aij = 1
Wj aji