Multi-Criteria Decision Model for the Selection of Suppliers in the Textile Industry

Abstract

In recent years, the market of textile and garment materials has been volatile, and the ongoing US-China trade war is creating good opportunities for other markets such as Vietnam, Bangladesh and Mexico to continue to expand their market share in the United States. Vietnam is expected to have great advantages thanks to cheap labor cost and strong production capacity. Raw material supplier selection in a volatile competitive environment is crucial for a company to succeed, and supplier selection is a complicate process in which decision-makers must consider multiple quantitative and qualitative features, along with their symmetrical impact, in order to achieve an optimal result. The purpose of selecting the right supplier is to improve competitiveness and product quality, while satisfying customer demand at a minimum production cost. The aim of this paper is to propose a multicriteria decision making model (MCDM) for garment and textile supplier selection. In the first stage, all criteria affecting this process are defined by using the supply chain operations reference model (SCOR) and experts’ opinion. Incorporating hybrid fuzzy set theory into the analytical network process (ANP) model is the most effective tool for addressing complex problems of decision-making, which has a connection with various qualitative criteria; thus, the Fuzzy Analytical Hierarchy Process (FAHP) was applied for determining the weight of all potential suppliers, and the preference ranking organization method for enrichment of evaluations (PROMETHEE II) was used for ranking the supplier. The results of this research will assist researchers and decision makers in identifying, adapting and applying appropriate methods to identify the optimal material suppliers in the textile and garment industry. This research can also be used to support supplier selection decisions in other industries.

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