Applications of Process Capability Indices for Supplier’s Selection Problems using Bootstrap Confidence Interval
Abstract
The bootstrap confidence interval method has been used often in various research articles to analyze process capabilities. The standard bootstrap (S-boot) and percentile bootstrap (P-boot) confidence intervals of the difference between two process capability indices δ′ were used in this article to take into account the supplier selection problem. The use of maximum likelihood method of estimation has been made to estimate δ′. In addition, using Monte Carlo simulation, the average widths (AW) of the standard bootstrap (S-boot) and percentile bootstrap (P-boot) of δ′ have been used. The supplier's selection problem's approach has been re- analyzed using the bootstrap confidence interval method using two real data sets.
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