Supplier Selection Critical Decision Values for Processes with Multiple Independent Lines

Group supplier selection problem is a critical problem because outsourcing is an important issue for supply chain management. For the advanced production processes with extremely low fraction of defectives, typical supplier selection methods no longer work because any sample of reasonable size probably contains no defective items. Thus, process capability indices have been extensively used for advanced production processes to evaluate and measure whether the process meets the specifications and they also provide quality assurance. In the globally competitive production environment, processes involving multiple production lines are quite common due to economies of scale considerations. In this paper, we consider a group supplier selection problem for multi‐supplier and multi‐line, in which a supplier group containing the best suppliers is selected based on a multi‐line yield index CpkM. To avoid the inflation of multiple comparisons, we apply the Bonferroni method and subtraction test statistic to tackle the group supplier selection problem. Critical values for testing procedure and required sample sizes for designated selection powers are obtained and tabulated. In addition, we apply multiple comparisons with the best method and compare the selection powers with the Bonferroni method for various power settings to provide more accurate group supplier decisions for real‐world applications.

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“…For processes with multiple independent lines, Pearn and Wu and Pearn et al developed 2‐supplier selection procedures based on the yield index

S_{pk}^{M}

using division method and subtraction method, respectively. However, the 2 research works focus on 2 suppliers' selections.…”

Section: Literature Reviewmentioning

confidence: 99%

Power analysis for group supplier selection with multiple production lines

Pearn

Tai

et al. 2018

Quality & Reliability Eng

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“…These studies are listed in Table 3. Pearn and Wu (2013) utilised overall yield indices to deal with the supplier selection problem. Wu et al (2008) developed a practical procedure based on process capability indices to make supplier selection decisions between two given suppliers.…”

Section: Process Capability Indicesmentioning

confidence: 99%

“…Chen and Chen (2006), Wu et al (2008), Pearn and Wu (2013), Wu, Liao, and Yang (2013), Wu, Pearn, and Chuang (2013) • An effective and convenient tool for evaluating quality performance. • Provides a numerical and unitless measure of whether a process can produce the required quality specified by the product designer.…”

Section: Process Capability Indicesmentioning

confidence: 99%

Taxonomy and review of non-deterministic analytical methods for supplier selection

Karsak

Dursun

2015

International Journal of Computer Integrated Manufacturing

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Supplier selection is considered to be one of the most critical activities of purchasing management in a supply chain. Selecting the right suppliers significantly reduces the purchasing cost and improves corporate competitiveness. Diverse methods have been developed to date, which address the needs of the supplier selection process. This article presents a review of non-deterministic analytical methods reported in the literature for supporting the supplier selection decision. The review is based on an extensive search in the academic literature from 2001 to 2013. A taxonomy of the supplier selection methods is presented by classifying the published supplier selection studies into two major categories as stochastic methods and fuzzy methods. These methods are further divided into individual approaches and integrated approaches. The objective of this research is threefold. First, it classifies the existing supplier selection literature according to the methods employed and determines the most prevalently used approaches, and also highlights main advantages and shortcomings of these approaches. Second, recent trends in supplier evaluation and selection methodologies are examined. Finally, this study identifies the most widely used decision criteria for supplier selection.

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“…Two methods such as the difference test statistic and the ratio test statistic can be used to solve this comparison problem. Some studies dealing with two‐supplier selection using process capability index can be found in the literature . Recently, Wang presented the difference test statistic to compare two suppliers for linear profiles.…”

Section: Introductionmentioning

confidence: 99%

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

Wang

Tamirat

2015

Quality & Reliability Eng

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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.

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Supplier Selection Critical Decision Values for Processes with Multiple Independent Lines

Cited by 10 publications

References 16 publications

Power analysis for group supplier selection with multiple production lines

Power analysis for group supplier selection with multiple production lines

Taxonomy and review of non-deterministic analytical methods for supplier selection

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

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