Implementing the Ratio Test Statistic to Compare Two Suppliers for Linear Profiles

Abstract

Comparing the process yield for linear profiles is an essential task in managing supply chains. This paper proposes the ratio test statistic based on the process yield index to compare two suppliers for linear profiles. The statistical properties of the ratio test statistic are presented. A simulation study was conducted to compare our proposed method with the different test statistic method. The results indicate that our proposed method is compatible with the different test statistic method. The critical values and the number of profiles required under a given type‐I and type‐II errors are calculated for determining the comparison decision. The results of the paper provide useful information to practitioners. A real data set is used to illustrate the applicability. Copyright © 2015 John Wiley & Sons, Ltd.