The Difference Test Statistic for Two Suppliers with Linear Profiles

Comparing two suppliers for linear profiles is a very important task for supplier management. The difference test statistic based on the process‐yield index is proposed to tackle the better process selection for linear profiles. A simple form of the sampling distribution of the process‐yield index is derived by a simulation study. Therefore, the asymptotic normal distribution of the difference test statistic is established. The results provide useful information to practitioners. An example from the leather industry is presented to illustrate the applicability of the proposed method.