Supplier Selection Using Process Capability and Price Information Chart

To keep the competition in customer-oriented economics, the major parties in the supply chain should be integrated and managed effectively to respond to customer needs. The efficiency of the entire supply chain is a main concern, and is determined by the members of that supply chain. Partner selection thus becomes one of the key steps in supply chain construction. This study establishes a suppliers capability and price information chart (SCPIC) focused on the case where the specification limits are symmetric about the target for evaluating supplier performance which applies the process incapability index to measure supplier quality performance. Practitioners can instantly and visually obtain information based on the locations of suppliers and price indices on SCPIC, which provides clear directions for quality improvement and is an effective and efficient method for evaluating suppliers, and provide insights into the process situation of suppliers who can become technological innovation partners.