An analytical closed-form solution for multiple line supplier selection problem

W.l. Pearn, Y. T. Tai*, S. C. Tseng

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

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 (Formula presented.) 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.

Original languageEnglish
Pages (from-to)1-12
Number of pages12
JournalQuality Technology and Quantitative Management
DOIs
StateAccepted/In press - 11 Feb 2018

Keywords

  • multiple line
  • process capability
  • Supplier selection

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