11th Annual International Conference on Industrial Engineering and Operations Management

Supplier Selection Problem of Small-Medium Enterprises in Apparel sector in Indonesia using Multi-criteria Decision Making Techniques

Nadhilah Hidayah Suryanto, Rahmat Nurcahyo & Muhammad Dachyar
Publisher: IEOM Society International
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Track: Supply Chain Management
Abstract

Indonesia’s economic growth as reflected in the country’s Gross Domestic Product (GDP) contributed by various aspects of Industry, the Apparel and Textile Industry is no exception. The role of Small and Medium Enterprises (SME) in Indonesia also gives a huge impact on Indonesia Gross Domestic Product with contribution 57.8% in 2018. Since the Small and Medium Enterprises in Apparel sector is predicted to have significant role in future Indonesia economic growth, its business strategy need to be improved. Small and Medium Enterprises supplier selection is one of supply chain stages that crucial to its business but only a few Apparel Small and Medium Enterprises that have a formal supplier criteria reference to be followed. To address this, the paper conducted a survey within experts in Apparel Small and Medium Enterprises in Indonesia through Delphi questionnaire to get the criteria that used in supplier selection decision making. Then the Analytical Hierarchy Process will be used to get the importance rank of the proposed criteria. This study could help decision makers in Fashion Small and Medium Enterprises to choose the supplier wisely in order to get a better performance for their business strategy.

Published in: 11th Annual International Conference on Industrial Engineering and Operations Management, Singapore, Singapore

Publisher: IEOM Society International
Date of Conference: March 7-11, 2021

ISBN: 978-1-7923-6124-1
ISSN/E-ISSN: 2169-8767