Supplier Evaluation and Selection for Processes with Quality Characteristics Described by Nonlinear Profiles

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Purpose – The purpose of this paper is to propose supplier evaluation and selection model using the proposed method based on process yield where the quality is described by nonlinear profile. Methodology – This paper present multiple comparisons with the best (MCB), difference test statistics and the Bonferroni method to evaluate and select the best supplier. Furthermore, this study considers processes which quality is described by nonlinear profiles with two-sided specifications. Simulation study was conducted to find the selection power and the required number of profiles. All programs were written in R language. Findings – This study found that MCB performs better than the Bonferroni method. Additionally, MCB will have the least power when the best supplier is equal to the upper limit of K/2 and the Bonferroni method will have the least power when there is only one best supplier exists. Both the number of levels and the number of profiles will have an impact on the power of the statistical test. The required number of profiles and the critical value are tabulated for the convenience of decision makers. Originality/value – The proposed method can help managers or practitioners to evaluate and select the best suppliers with the identified criteria in an effective way.