A Statistical-Based Framework for Predicting Supplier’s Behavior to Quality Requirement Changes in Supply Chain

Abstract

Companies-manufacturers have to deal with demand and supply uncertainties. They need to adjust to changing customer needs and to be able to pass new quality requirements through the supply chain. Even if suppliers’ performance is satisfactory in stable environment, they can behave differently in dynamic situation. Some suppliers can fail to meet new quality requirements or even quit the supply chain. Underestimation of suppliers’ motivation can lead to loss of sales, customers, and can face the situation of need of new supplier search. The goal of this paper is to highlight an importance of consideration of informal factors in relationships with supply chain and to discuss a methodology of approach to predict high risk suppliers for changing quality requirements.