Supplier Selection Based on Process Capability and Price Analysis

Richard J. Linn · Fugee Tsung · Lau Wai Choi Ellis

37 citations0/0 files storedQuality Engineering

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Advanced Statistical Process Monitoring Multi-Criteria Decision Making Quality and Supply Management

Abstract

Supplier selection is an important part of supply chain management. Among the numerous methods that have been proposed, process capability index is considered to be the most effective technique for identifying quality parts. However, supplier selection should be carried out on the basis of quality and cost together. There is no easy tool available to evaluate the price and quality in an integrated manner. In this article, a new approach to supplier selection using capability index and price comparison (CPC) chart is presented. The CPC chart integrates the process capability and price information of multiple suppliers and presents them in a single chart. It provides a simple but effective method to consider quality and price simultaneously in the supplier selection process.

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References

1991Quality Engineering Using Robust Design 1998An analysis of the supplier selection process 1999Business logistics management : planning, organizing, and controlling the supply chain 1993A note on multivariate capability indices 1988The Nature of Six Sigma Quality 1991A mulvariate measure of process Capability 1994SELECTING A BETTER SUPPLIER BY TESTING PROCESS CAPABILITY INDICES 1997MULTIPROCESS PERFORMANCE ANALYSIS: A CASE STUDY

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2009Supplier selection by the pair of nondiscretionary factors-imprecise data envelopment analysis models 2015Supplier Quality Management Inside and Outside the Construction Industry 2019Yield-based process capability indices for nonnormal continuous data 2012A measurement model for service capability from the customer perspective

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