Identifying Optimum Supply Unit Using an Integrated Fuzzy TOPSIS and MCGP Approach in Apparel Industry Sector

Abstract

With the inexorability of globalization and open trade system, there has been extension of large business with an increase in the outsourcing of parts and services especially in the apparel sector. Increasing in number, the apparel industries confront dormant competition and need to emphasize on some technical key points to be fortitude. Purchasing and its associated functions are the eminent fields playing important role in this connection as it is most decisive and most of the production cost and time are spent regard to those. As for trading, apparel sector products normally categorize into two - push and pull while pull products are executed in anticipation of the customer order and push products are initiated according to customer order. It engenders dealings with risk and cause more investment which may incur a loss to the industries because of any faltering decision. Appropriate supplier and supply quantity selection triggers the probably of success as other parameters evolve by these and hence they are most important and can reduce risk if it can be handled combined for several products. Using fuzzy-TOPSIS and MCGP, the paper determines the joint (push and pull) amount to take from each supplier based on their performance ranking on selected criteria considering budget, delivery, demand and supply constraints. The result generated solving a LP model formed on the basis of opportunity and threats. The model is solved by LINDO system. The strength of presenting approach is its practical applicability and ability to provide solution under partial or lack of quantitative information and in joint order handling.