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Developing a quality-based supplier selection model from the buying company perspective

Chen, Kuen-Suan, Chung, Leanne and Chang, Tsang-Chuan 2020. Developing a quality-based supplier selection model from the buying company perspective. Quality Technology and Quantitative Management 10.1080/16843703.2020.1787307

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In the face of increased competition and globalization, supply chain management has become a crucial aspect of securing competitive advantage. Within this, the quality offered by suppliers is vital. Thus, in this paper, we develop a model to select the best supplier based on process quality from the perspective of the buyer. We first employ the process capability index Spk, which can provide an exact measure of process yield, to evaluate the process quality of suppliers. However, Spk must be estimated from preliminary samples or obtained subsamples. This increases uncertainty and can lead to miscalculation. To ensure the reliability of assessment, we derive the lower confidence limit of Spk to serve as a standard of process quality assessment and construct a process capability analysis chart to select the best supplier. The chart also provides recommendations for process improvement to serve as a reference for suppliers with poor performance. Finally, we present two real-world case studies to demonstrate the practical applicability of the proposed method.

Item Type: Article
Date Type: Published Online
Status: In Press
Schools: Business (Including Economics)
Publisher: Emerald
ISSN: 1684-3703
Date of Acceptance: 19 June 2020
Last Modified: 19 Jan 2021 11:45

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