An analytical closed-form solution for multiple line supplier selection problem. Issue 4 (4th July 2019)

• Record Type: Journal Article
• Authors: Pearn, W. L.; Tai, Y. T.; Tseng, S. C.
• Is Part Of: Quality technology & quantitative management. Volume 16:Issue 4(2019)
• Page Start: 377
• Page End: 388
• Publication Date: 2019-07-04
• Subjects: Supplier selection -- multiple line -- process capability; Quality control -- Periodicals; Quality control -- Statistical methods -- Periodicals; Industrial management -- Periodicals; Industrial management; Management -- Research -- Methodology -- Periodicals; Qualitative research -- Periodicals; Management; Quality control; Quality control -- Statistical methods; Periodicals; 658.00721
• DOI: 10.1080/16843703.2018.1430522
• Languages: English
• ISSNs: 1684-3703

Abstract

Abstract: Supplier selection is an essential issue, particularly, for semiconductor manufacturing. Nowadays, since high demands in the globally competitive semiconductor manufacturing environment, multiple-line processes are quite commonly applied. In the paper, we consider a two-stage method composing of quality verification and selection decision for multiple-line supplier selection problems. Since quality performance is an important criterion in supplier selection, we test whether the new supplier has a significantly better capability than the existing supplier based on the multiple-line yield index C pk M in the stage of quality verification. In selection decision, when the magnitude of capability outperformance is significant, switching contracts to a new entrant supplier is suggested. In addition, analytical closed-form solutions for asymptotical critical values and required sample sizes are derived and tabulated for the investigated multiple-line supplier selection problem. We demonstrate the applicability of the proposed supplier selection method by presenting a real-world example taken from a semiconductor packaging shop floor located in the Science-based Industrial Park in Hsinchu, Taiwan.