A powerful test for two-sided multiple independent characteristics supplier selection problem

Abstract

In this article, we consider the supplier selection problem for two-sided processes with multiple independent characteristics. We review the existing division method and develop a new exact approach called the subtraction method. For practical applications, a two-phase selection procedure is established based on the subtraction method. The decision powers of two methods are compared. We show that the subtraction method we proposed is indeed more powerful than the existing division method. Several figures are presented to display the required sample sizes with various powers and various values of ). For the convenience of practitioners, the required sample sizes for the two methods with various powers and various values of ) are also tabulated.

Keywords:

• multiple independent characteristics
• process capability index
• subtraction method
• supplier selection