Application of AHP and TOPSIS Method for Supplier Selection Between India & China in Textile Industry

Abstract

Supplier selection, the method of optimizing the appropriate suppliers who will be able to supply the buyer with the right quality products and/or services at the right price, at the right time and in the right quantities,. In other words, supplier selection is a multi-criteria decision making problem which includes both qualitative and quantitative factors. China and India are the top two textile producers in the world. The proceeds from textile and apparel exports have contributed greatly to the economic development of both countries. In order to choose the best suppliers, it is essential to make a trade-off between these tangible and intangible factors, some of which may conflict. The aim of this study is to develop a methodology to evaluate suppliers in supply chain cycle based on Technique for Order Preference by Similarity to Ideal Solution method (TOPSIS). In this paper, we have taken into consideration some important criteria which affect the process of supplier selection, that is, product quality, service quality, delivery time and price. We have calculated the weights for each criterion based on Analytic Hierarchy Process (AHP) and then inputted these weights to the TOPSIS method to rank suppliers. The entire methodology is illustrated with the help of a numerical example and finally the rank of each supplier is determined accor ding to its r esults.