International Research Journal of Engineering and Technology ( I RJET) e-ISSN: 2395 -0056 Volume: 02 Issue: 04 | July-2015 www.irjet.net p-ISSN: 2395-0072 © 2015, IRJET.NET- All Rights Reserved Page 1730 Application of AHP and TOPSIS Method for Supplier Selection Between India & China in Textile Industry Jayar am C Sasi 1 , Dr. Abhijeet K Digalwar 2 1 Asst. Professor, Ilahia College of Engg.& Tech., Muvattupuzha, India 2 Associate Professor Dept. of Mechanical Engg, Birla Institute of Technology & Science, Pilani, India ---------------------------------------------------------------------***--------------------------------------------------------------------- Abstract - Supplier selection, the method of optimizing the appropriate suppliers who will be able to supply the buyer with the right quality products and/ or services at the right price, at the right time and in the right quantities,. In other words, supplier selection is a multi-criteria decision making problem which includes both qualitative and quantitative factors. China and India are the top two textile producers in the world. The proceeds from textile and apparel exports have contributed greatly to the economic development of both countries. In order to choose the best suppliers, it is essential to make a trade-off between these tangible and intangible factors, some of which may conflict. The aim of this study is to develop a methodology to evaluate suppliers in supply chain cycle based on Technique for Order Preference by Similarity to Ideal Solution method(TOPSIS). In this paper, we have taken into consideration some important criteria which affect the process of supplier selection, that is, product quality, service quality, delivery time and price. We have calculated the weights for each criterion based on Analytic Hierarchy Process (AHP) and then inputted these weights to the TOPSIS method to rank suppliers. The entire methodology is illustrated with the help of a numerical example and finally the rank of each supplier is determined according to its results. Key Words : Analytic Hierarchy Process (AHP), multi- criteria decision making, supplier selection, Technique for Order Preference by Similarity to Ideal Solution method (TOPSIS). 1.INTRODUCTION Supply Chain Management (SCM) is a process of organizing the activities from the customer’s order through final delivery for speed, efficiency, and quality[1] . In supply chain one of the major factor is supplier . SCM has an increasing importance in today’s competitive business world and companies need to have strong relationships and integrations with their suppliers for a successful SCM system. Supplier selection problem is a multiple criteria decision making (MCDM) problem typically having conflicting criteria that include both qualitative and quantitative measures. Due to strategic importance of supplier selection process, extensive research has been done on supplier selection criteria and methods. China and India are the top two textile producers in the world .Various Textile Brands are available both in India & China. Interestingly, textile enterprises in China and India have adopted quite different business models and have followed divergent growth tracks. Since following different path it has it’s own advantage & disadvantage . Based on advantage & disadvantage & various criteria if we have to choose either of one country which is MCDM problem we can adopt AHP-TOPSIS method . In this we have calculated the weights for each criterion and inputted those weights to the TOPSIS method to rank suppliers. The main advantages of using TOPSIS method are 1. It is simple to use. 2. It takes into account all types of criteria (subjective and objective). 3. It is rational and understandable. 4. The computation processes are straight forward. 5. The concept permits the pursuit of best alternatives criterion depicted in a simple mathematical calculation. 2.LITERATURE REVIEW Emrah Onder et al(2013) used AHP TOPSIS for supplier selection for a well-known cable manufacturing company in Turkey. In these seven criteria’s were used Origin of Raw Material , Quality , Availability , Cost , Delivery Requirements , Cost of Conveyance , Quality Certificates and Reliability of Supplier . In these he used consistency ratio to justify the opinion of experts. Soner Akkoç et al (2013) conducted a evaluation study of fuzzy performance using AHP & TOPSIS methods , conducting study in banking sector in Turkey. Study were conducted on the financial performance of twelve commercial banks & were evaluated in terms of seventeen financial performance indicators by employing Fuzzy Analytic Hierarchy Process (henceforth Fuzzy AHP) and Fuzzy Technique for Order Preference by Similarity to Ideal Solution (henceforth Fuzzy TOPSİS) methods & it was found that these two methods rank banks in a similar manner.. Bahar