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

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Listed:
  • 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)

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.

Suggested Citation

  • Ramos Bruna & Silva João & Vila-Chã António & Azevedo Henrique & Ramos João & Ferreira Ana Cristina, 2024. "Influence of Demand on Supplier Selection Using the Analytic Hierarchy Process: A Case Study Validation in the Textile Industry," Business Systems Research, Sciendo, vol. 15(1), pages 178-200.
    • Handle: RePEc:bit:bsrysr:v:15:y:2024:i:1:p:178-200:n:1009
    DOI: 10.2478/bsrj-2024-0009
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    References listed on IDEAS

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    1. Klasa, Katarzyna & Greer, Scott L. & van Ginneken, Ewout, 2018. "Strategic Purchasing in Practice: Comparing Ten European Countries," Health Policy, Elsevier, vol. 122(5), pages 457-472.
    2. Felipe Sanchez Garzon & Manon Enjolras & Mauricio Camargo & Laure Morel, 2019. "A green procurement methodology based on Kraljic Matrix for supplier`s evaluation and selection: a case study from the chemical sector," Post-Print hal-02151353, HAL.
    3. Teresa Fayos & Haydeé Calderón & Juan Manuel García-García & Belén Derqui, 2022. "The upcoming rise of SMEs in cross-border public procurement: is it a matter of networking capabilities?," Journal of International Entrepreneurship, Springer, vol. 20(4), pages 537-563, December.
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    More about this item

    Keywords

    Supplier Selection; Multicriteria Decision Model; AHP; Textile Industry;
    All these keywords.

    JEL classification:

    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology

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