Designing a Model for Evaluation and Prioritizing of Contractors by Using Fuzzy analytic Hierarchy and Taguchi Loss Function

Document Type : Research Paper


1 Assistant Professor of management Department , Shiraz University,shiraz,Iran

2 MSc. Student of industrial management, Shiraz University,shiraz,Iran


This Paper has been done with the goal of assessment and prioritization of contractors of Fars Province Electricity Distribution Company. Such decision makings are generally complicated and are essentially considered as an multi-criteria decision making process. If the tasks assigned to contractors are not performed appropriately, it would lead to loss. In other words, contractors who cause the least loss, are considered as those with the best performance. Taguchi’s loss function can be used in order to calculate the loss caused be contractors performance. In this paper, a model has been proposed using Fuzzy AHP and combining it with Taguchi’s loss function, in order to assess and rank the contractors. A great ranking of contractors based on their performance is obtained using this methodology. The input data of this model is acquired of twenty contractors of Fars Province Electricity Distribution Company in twenty-four criteria and the output of this model is the final points of cooperating with each contractor. The results show that the strongest and weakest contractor impose Loss of 29.20 and 98.15 percent, respectively, on company.


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