Abstract
Suppliers selection is an important part of manufacturing planning process. A number of methods have been proposed and some of them are being currently practiced in the industry. Among them, Cpk index is considered the most effective technique to identify the best supplier of best quality products. However, supplier selection should be carried out on the basis of "best quality" at "least cost". Price and quality should be evaluated in an integrated manner. In this research, a review of the selection methods and capability indices is carried out and a systematic approach to supplier selection based on process capability and price analysis is proposed. Quality and price are considered simultaneously within the selection process.