Within the competitive supplier base environment, firms are more conscious about selecting the right supplier at the right time by considering wide range of qualitative and quantitative criteria. This present research work devises a mathematical algorithm for selecting suppliers and develop the decision support model for apparel industry in Sri Lanka with the incorporation of Pareto analysis and Analytic Hierarch Process. According to the descriptive analysis, it is identified that the supplier selection process is 100% crucial for a firm and procurement cost accounts for 40%-60% of total cost. The most recognized dynamic situation was demand uncertainty. As the prominent criteria; quality, per unit cost, delivery lead time and supplier service level were identified with the respective relative weightages of 0.2510, 0.3298, 0.2285 and 0.1908. As the constraints, supplier’s maximum quantity and the lead time was identified. By considering all the factors, algorithm was developed to calculate the supplier score and select the highest scored supplier as the best supplier. The developed model allows procurement professionals in apparel industry in Sri Lanka to make sound decisions with respect to supplier selection. The study seeks to address the supplier selection modeling that have not well explored in previous Sri Lankan literature.

Keywords

Decision support model, supplier selection, apparel industry in Sri Lanka, Pareto analysis, Analytical Hierarch Process