An effective powerful test for one-sided supplier selection problem with multiple independent characteristics

Abstract

In this paper, we use the index to investigate the supplier selection problem for one-sided processes with multiple independent characteristics. We first review the existing approach, which we refer to as the division method, then develop a new exact approach called the subtraction method. A two-stage selection procedure is developed based on the subtraction method for practical applications. We then compared the two methods with regard to selection power. The results show that the subtraction method we propose is indeed more powerful than the existing division method. A thin-film transistor type liquid-crystal display (TFT-LCD) application example is provided to illustrate the testing procedure.

Keywords:

• Multiple independent characteristics
• subtraction method
• supplier selection problem

Disclosure statement

The authors report no conflicts of interest. The authors alone are responsible for the content and writing of this article.

Notes on contribuors

W. L. Pearn, received the Ph.D. degree in operations research from the University of Maryland, College Park. He is a Professor of Operations Research and Quality Assurance at National Chiao Tung University (NCTU), Hsinchu, Taiwan. He was with Bell Laboratories, Murray Hill, NJ, as a Quality Research Scientist before joining the NCTU, and others. His current research interests include process capability, network optimization and production management. Dr. Pearn’s publications have appeared in the Journal of the Royal Statistical Society, Series C, Journal of Quality Technology, European Journal of Operational Research, Journal of the Operational Research Society, Operations Research Letters, Omega, Networks and the International Journal Production Research.

Chia-Huang Wu, received his Ph.D. degree in National Chiao Tung University, Hsinchu, Taiwan. Currently, he is doing research at the Department of Statistics, Feng Chia University, Taiwan, ROC.

Ching-Ching, Chuang received her M.S. degree in the Department of Industrial Engineering and Management, National Chiao Tung University, Taiwan, ROC.