Fuzzy-AHP-TOPSIS: An integrated multi-criteria decision support system for supplier selection in Pakistan’s textile industry

One of the most important tasks within supply chain procurement process is supplier selection. Supplier selection being a complex task usually identified as a multiple criteria decision making problem to develop the decision support system for supplier selection while dealing with supply chain management. This research paper aims to propose and apply a subjective approach using fuzzy logic to develop a new FuzzyAHP-TOPSIS based decision support system for supplier selection in a Pakistani textile industry. This research deals with the selection of cotton supplier by fuzzy soft computing approach integrated in to analytical hierarchy process (AHP). Then to get the optimal solution, we used Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). We first reviewed the literature to identify various criteria for supplier selection. All the criteria are discussed with the supply chain expert in the textile industry to shortlist the relevant criteria. The shortlisted criteria are then compared pair-wise for calculating the weights of each criterion by the textile company’s procurement manager. The calculated weights are then further used to rank suppliers using TOPSIS. Consistency ratio is being calculated to nullify the bias within decision makers’ mind. This new method improved the supply chain performance of the case company which may be employed by other textile companies for their supplier selection needs.