Decision-Making for the Selection of Suppliers Based on the Process Quality Assessment

Abstract

Supplier selection is a practical problem in supply chain management and quality is the most important criterion in supplier selection. In this study, we developed a supplier selection model based on process quality, in which the Six Sigma quality index [Formula: see text] is used as a tool to assess the process quality provided by suppliers. Note that index estimation based on sample data is prone to uncertainty in the assessment of process quality. Therefore, we derived the confidence interval of [Formula: see text] via mathematical programming to reduce the likelihood of assessment miscalculations, and then used this interval to perform a pairwise comparison of suppliers. Our goal was to identify criteria that can be used to select the optimal suppliers for long-term collaborations and sustainable partnerships. A case study is also presented to demonstrate the practical implementation of the proposed method.

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