Volume 39, Issue 2 (March 2011)

    Two Tests for Supplier Selection Based on Process Yield

    (Received 4 March 2010; accepted 14 August 2010)

    Published Online: 2010

    CODEN: JTEOAD

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    Abstract

    Market share is highly corrected with customer satisfaction and business success; many companies increase their outsourcing level to keep their core competition. Supplier selection problems have become an important issue of production management. Process yield is a standard criterion in the manufacturing industry as a common measure on process performance. The index SPK provides an exact measure on the process yield for normal processes. However, most studies considered the assessment of index SPK for just one single supplier; the testing procedure for suppliers selection has not been done at present. Hence, the principal purpose of this research is to determine the more capable process between two competing suppliers. Two tests are presented based on SPK, and four bootstrap methods are used for obtaining the test statistics. By Monte Carlo simulations, performance comparisons of these methods are performed in terms of empirical size and selection power. Finally, a case on the color filter manufacturing process is investigated to demonstrate the applicability of the proposed method.


    Author Information:

    Pearn, W. L.
    Dept. of Industrial Engineering and Management, National Chiao Tung Univ., Hsinchu,

    Liao, Mou-Yuan
    Dept. of Finance, Yuanpei Univ., Hsinchu,

    Wu, Chien-Wei
    Dept. of Industrial Management, National Taiwan Univ. of Science and Technology, Taipei,

    Chu, Yao-Tsung
    Dept. of Industrial Engineering and Management, National Chiao Tung Univ., Hsinchu,


    Stock #: JTE103069

    ISSN: 0090-3973

    DOI: 10.1520/JTE103069

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    Author
    Title Two Tests for Supplier Selection Based on Process Yield
    Symposium , 0000-00-00
    Committee E11