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Review Article
A Review of Quality Criteria Supporting Supplier Selection
Mohammad Abdolshah
Engineering Faculty, Islamic Azad University, Semnan Branch, Semnan 35136-93688, Iran
Correspondence should be addressed to Mohammad Abdolshah; abdolshah@gmail.com
Received 31 December 2012; Accepted 28 April 2013
Academic Editor: Shey-Huei Sheu
Copyright 2013 Mohammad Abdolshah. This is an open access article distributed under the Creative Commons Attribution
License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly
cited.
This paper presents a review of decision criteria reported in the literature for supporting the supplier selection process. The review is
based on an extensive search in the academic literature. After a literature review of decision criteria, we discuss the most important
criteria: quality. Then different methods and factors for assessing the quality of supplier are discussed. Results showed that all
methods and factors mentioned in this paper are not appropriate tools for quality evaluation. Moreover, we propose a novel method
(using loss functions) in order to assess the quality of suppliers.
1. Introduction
Nowadays companies hope to establish a longer-term working relationship with the suppliers. Therefore, supplier selection is one of the main parts of decisions in supply chain
management. Because there are many suppliers with many
criteria, so it is impossible to find the best way to evaluate
and select suppliers. Therefore, in studies, scholars have used
different methods, variables, criteria, and factors in order to
select the suppliers.
Evaluation of suppliers is a process that leads companies
to select their desired suppliers. This process has two main
aims, which are to reduce all costs of purchasing and to
increase the overall value of the purchasing [1]. Regarding
to the costs of evaluating the suppliers (such as time and
travel budget), companies basically evaluate those suppliers
that have a good chance of qualifying for purchasing from
them. In this process, formally, companies send expert teams
to the supplier site, and with evaluating different criteria and
factors, they will do an in-depth evaluation.
There are different steps that must be done in the process
of supplier evaluation and selection [1]. As it is shown in Figure 1, in order to evaluate and select the suppliers, companies
must identify some important things such as methodologies,
criteria, and problems (strategies).
best supplier. Linn et al. [7] presented CPC chart for supplier
selection problem (Figure 2). The CPC chart integrates the
process capability and price information of multiple suppliers
and presents them in a single chart. It provides a simple and
useful method to consider quality and price simultaneously
in the supplier selection process. However, this chart uses
index, while we know that this process capability index is not
a proper index to evaluate quality.
In order to evaluate supplier, Linn et al. [7] considered some factors such as quality, on-time delivery, price,
and service, but the strategy is not clear if the purchase
department wants to buy many kinds of materials from one
supplier. It means in this case that some other factors must
be considered, because purchase department always wants to
buy all materials from one or two suppliers, so the shipment
cost also will be decreased. Similarly Zhu [39] established
a suppliers capability and price information chart (SCPIC)
(Figure 3) 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.
Assessing quality as one of the main factors for supplier
selecting is so important. In order to assess the quality there
are many factors and methods that can be used. There are a lot
of literatures accumulated on the subject of vendor evaluation
and selection models, and in order to evaluate quality, most of
these models have used rate of rejects [20, 29, 30], while rate
of rejects cannot present the quality appropriately. In a recent
study, Lee [31] used yield rate in order to evaluate the quality.
Mean rating
3.508
3.417
2.998
2.849
2.775
2.758
2.545
2.514
2.488
2.426
2.412
2.256
2.216
2.211
2.187
2.120
2.054
2.009
2.003
1.872
1.597
1.537
0.610
Evaluation
Extreme importance
Considerable importance
Average importance
Slight importance
H zone
2.5
E zone
2
G
Cpk
Rank
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
1.5
S
C
0.5
0
0
0.5
1.5
2.5
T/P
Dependability refers to the ability to supply items as promised. Dependability sometimes includes delivery due date, delivery accuracy, and delivery
completeness.
2
Ability to change or revise in the production operations.
A: Dickson [6]; B: Wind et al. [10]; C: Lehmann and haughnessy [11]; D: Perreault and Russ [12]; E: Abratt [13]; F: Billesbach et al. [14]; G: Weber et al. [5]; I:
Min and Galle [15]; J: Stavropolous [16]; K: Pi and Low [17]; L: Pi and Low [18], M: Teeravaraprug [19]; N: Sanayei et al. [20]; O: Parthiban et al. [21]; P: Peng
[22]; Q: Bilisik et al. [23]; R: Tektas and Aytekin [24]; S: Li [25]; T: Betul et al. [26]; U: Mehralian et al. [27].
Cpp = 0.25
Cpl
E+
2
B
Cpp = 0.81
C
D+
A+
0
Cpu
23
21
22
20
19
17
18
16
15
14
11
12
13
10
6
7
2
3
4
ID
Tseng and Wu
[35]
Chou [36]
Huang and Lee
Pearn et al. [37]
Teng and
Jaramillo [32]
Liu and Hai [40]
Pi and Low [17]
Pearn and Kotz
[38]
Linn et al. [7]
Wang and Guo
[29]
Hou and Su [33]
Xia and Wu [34]
Zhu [39]
Sanayei et al.
[20]
Teeravaraprug
[19]
Kokangul and
Susuz [30]
Lee [31]
Li [25]
Tektas and
Aytekin [24]
Parthiban et al.
[21]
Peng [22]
Bilisik et al. [23]
Mehralian et al.
[41]
Article
2012
2012
2012
2012
2011
2009
2010
2009
2008
2008
2007
2007
2007
2007
2006
2006
2005
2005
2005
1994
1995
2004
1991
Quality of
Continuous customer
Rate of
improvement
and
Certifications
Year
rejects
programs
support
services
Capability
Process
of
Yield
Loss
Customer
Culture
Enterprise
capability
handling
rate
functions satisfaction compatibility
credit
indices
abnormal
quality
Table 3: The literature review about the methods of assessing quality for supplier selection.
6
Journal of Quality and Reliability Engineering
16
1.6
14
1.4
12
1.2
10
0.8
0.6
0.4
0.2
0
Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Target
Quality characteristics
USL
Target
Quality characteristics
USL
References
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