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

Abstract

ABSTRACT 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 , which can provide an exact measure of process yield, to evaluate the process quality of suppliers. However, 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 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.