DIGITAL SUPPLIER SELECTION FOR A GARMENT BUSINESS USING INTERVAL TYPE-2 FUZZY TOPSIS

Year 2020, Volume: 30 Issue: 1, 61 - 72, 25.03.2020

Ahmet Özbek Aytaç Yıldız

https://doi.org/10.32710/tekstilvekonfeksiyon.569884

Cited By: 10

Abstract

Recent advances in digital technology and manufacturing have
changed the industry dramatically. Fundamentally, Industry 4.0 has begun to
affect many areas, aiming at improving production and engineering processes,
improving the quality of products and services, optimizing the relationship
between customers and organizations, bringing new business opportunities and
providing economic benefits. One of those areas is the supply chain management,
which greatly affects business productivity. Industry 4.0 has provided a highly
efficient digital supply chain that has established a smart connection between
supply, production, logistics and customers. This has promoted the digitization
of suppliers resulting in an increase in the performance of parent companies,
which, therefore, wish to identify and use the suppliers that best use digital
technologies. However, it is an uncertain decision problem which has many
criteria in order to determine these suppliers. Therefore, this problem can be
solved by multi-criteria decision-making methods that can best model
uncertainties.

In this study, it is aimed to select
the best one among the suppliers which are digitalized by using the industry
4.0 technologies from the suppliers of a parent firm operating in the garment
industry. In order to solve the selection problem, the interval type-2 fuzzy
TOPSIS method, which includes a interval of type-2 fuzzy sets and which can
model the uncertainties very well in solving fuzzy multi-criteria decision
making problems, was used. At the end of the study, alternatives were listed
according to closeness indexes and the best digital supplier selection was made
according to the results of sensitivity analysis and necessary evaluations were
made. As a result, the selection model used in this paper, which is the first
study in the literature on the selection of digital suppliers and which is not
included in the selection of traditional suppliers, can contribute to
researchers and practitioners by using them for other industries.

Keywords

Industry 4.0, Digital Supply Chain, Fuzzy TOPSIS, Garment Industry

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