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Influence of Demand on Supplier Selection Using the Analytic Hierarchy Process: A Case Study Validation in the Textile Industry

Ramos Bruna (), Silva João (), Vila-Chã António (), Azevedo Henrique (), Ramos João () and Ferreira Ana Cristina ()
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Ramos Bruna: COMEGI, Faculdade de Engenharias e Tecnologias Universidade Lusíada, Vila Nova de Famalicão, Portugal ALGORITMI, University of Minho, Guimarães, Portugal
Silva João: COMEGI, Faculdade de Engenharias e Tecnologias Universidade Lusíada, Vila Nova de Famalicão, Portugal
Vila-Chã António: COMEGI, Faculdade de Engenharias e Tecnologias Universidade Lusíada, Vila Nova de Famalicão, Portugal
Azevedo Henrique: COMEGI, Faculdade de Engenharias e Tecnologias Universidade Lusíada, Vila Nova de Famalicão, Portugal
Ramos João: Center for Innovation and Research in Business Sciences and Information Systems (CIICESI), Escola Superior de Tecnologia e Gestão, Instituto Politécnico do Porto, Felgueiras, Portugal
Ferreira Ana Cristina: COMEGI, Faculdade de Engenharias e Tecnologias Universidade Lusíada, Vila Nova de Famalicão, Portugal MEtRICs - Mechanical Engineering and Resource Sustainability Center, University of Minho, Guimarães, Portugal

Business Systems Research, 2024, vol. 15, issue 1, 178-200

Abstract: Background Supplier selection has emerged as an important activity regarding strategic purchasing with implications for the operational efficiency of both organisations and supply chains. Given the need to evaluate both qualitative and quantitative criteria for different supply alternatives, the decision-making process became more complex. Objectives In the present work, an adapted Analytic Hierarchy Process model is proposed for supplier selection, which is being validated within the context of a textile company. The multi-criteria decision support model was coded in Python and encompasses criteria, cost, quality, delivery time, sustainability, and history. Methods/Approach This model allocates weights to individual suppliers based on the diverse criteria considered. Four alternatives were considered as the chemical fabric dyeing pigment suppliers. Two different scenarios were considered to understand the influence of demand on the supplier selection problem. Results The cost is the most valued criterion in the supplier selection (0.493 for Scenario 1 and 0.426 for Scenario 2). The second most important criterion for regular demand is quality (0.224), whereas, for the increased demand scenario, delivery time (0.301) is the second most impactful criterion. Conclusions The application of the AHP for both tested scenarios resulted in a different priority, highlighting the adjustment capacity of the implemented model to different search parameterisations.

Keywords: Supplier Selection; Multicriteria Decision Model; AHP; Textile Industry (search for similar items in EconPapers)
JEL-codes: C6 O14 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:bit:bsrysr:v:15:y:2024:i:1:p:178-200:n:1009

DOI: 10.2478/bsrj-2024-0009

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