The textile industry significantly contributes to Indonesia’s Gross Domestic Product, accounting for 7.1% of the non-oil and gas sector in 2019, which declined to 5.8% in 2023. This industry encompasses upstream (fiber-making and spinning), midstream (weaving, knitting, printing, dyeing), and downstream (garment production) segments. The capital-intensive yarn spinning sector is crucial, with raw materials and energy comprising 58.1% and 18.5% of costs, respectively. Effective supplier selection can reduce these costs and enhance market competitiveness. Beyond price and quality, supplier selection now prioritizes sustainability, in alignment with the United Nations’ Sustainable Development Goals. This shift is essential for enhancing competitiveness and addressing climate change challenges. This study employs a combined Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS) to assess sustainable supplier selection (SSS) criteria in the textile industry. The FAHP results indicate that the economy is the most important criterion among the three (economy, environmental, and social). Product quality is the most important among the sub-criteria, while social responsibility is considered the least important. FTOPSIS identifies Supplier B as the best supplier of all supplier alternatives. The findings offer a deeper understanding of SSS dynamics within the textile industry.

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Solving Sustainable Supplier Selection Problems Based on FAHP and FTOPSIS for Textile Industry

  • Feri Ancen Pakpahan,
  • Mohammad Mi’radj Isnaini,
  • Abdul Hakim Halim,
  • Shih-Che Lo

摘要

The textile industry significantly contributes to Indonesia’s Gross Domestic Product, accounting for 7.1% of the non-oil and gas sector in 2019, which declined to 5.8% in 2023. This industry encompasses upstream (fiber-making and spinning), midstream (weaving, knitting, printing, dyeing), and downstream (garment production) segments. The capital-intensive yarn spinning sector is crucial, with raw materials and energy comprising 58.1% and 18.5% of costs, respectively. Effective supplier selection can reduce these costs and enhance market competitiveness. Beyond price and quality, supplier selection now prioritizes sustainability, in alignment with the United Nations’ Sustainable Development Goals. This shift is essential for enhancing competitiveness and addressing climate change challenges. This study employs a combined Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (FTOPSIS) to assess sustainable supplier selection (SSS) criteria in the textile industry. The FAHP results indicate that the economy is the most important criterion among the three (economy, environmental, and social). Product quality is the most important among the sub-criteria, while social responsibility is considered the least important. FTOPSIS identifies Supplier B as the best supplier of all supplier alternatives. The findings offer a deeper understanding of SSS dynamics within the textile industry.