SOLVING SUSTAINABLE SUPPLIER SELECTION PROBLEMS BASED ON FUZZY AHP AND FUZZY TOPSIS FOR TEXTILE INDUSTRY

• Main Author: Ancen Pakpahan, Feri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/84473
• Institution: Institut Teknologi Bandung

The textile industry is a significant contributor to Indonesia’s GDP, accounting for around 7.1% of the non-oil and gas industry GDP in 2019, though this declined to 5.8% in 2023. The industry encompasses three segments: upstream (fiber-making and spinning), midstream (weaving, knitting, printing, and dyeing), and downstream (garment production). The yarn spinning sector, which provides raw materials for the midstream and downstream industries, is capital-intensive, technologically advanced, and offers high added value but also faces high costs for raw materials and energy (58.1% and 18.5% of operational costs, respectively). Selecting the right suppliers can help lower raw material costs and optimize energy use, enhancing overall cost-efficiency and market competitiveness.Traditionally, supplier selection prioritized price and quality, but now it includes sustainable practices addressing economic, environmental, and social factors, aligning with Sustainable Development Goals from the United Nation. This shift, known as Sustainable Supplier Selection (SSS), is crucial for maintaining competitiveness and addressing climate change. SSS and the textile industry are prominent research topics in Sustainable Supply Chain Management as multi-criteria decision-making problems. This thesis aimed to evaluate SSS criteria within the textile industry by employing a combined Fuzzy Analytic Hierarchy Process and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution methodology. Additionally, an advanced SWOT analysis was incorporated to provide strategic recommendations for sustainable supplier management in Company X, one of Indonesia’s largest yarn spinning companies. The findings offer a comprehensive understanding of SSS and supply chain management within this context.