A hybrid AHP and statistical validation approach for sustainable supplier selection in apparel industry

Supplier selection is a critical factor in ensuring operational efficiency and competitiveness in the apparel industry, especially in Bangladesh, a leading exporter of ready-made garments. This study employs the Analytical Hierarchy Process (AHP) to evaluate and rank suppliers for Alim Knit BD Ltd. Bangladesh, utilizing a multi-criteria decision-making approach. Four suppliers are assessed based on eight essential criteria: quality, cost, lead time, service, billing flexibility, logistics capacity, relationship, and information service capability. Montrims Limited emerged as the top supplier with the highest priority weight (50.27%), reflecting its superior performance in cost efficiency, logistics capacity, and lead time. In contrast, Adzi Trims Limited ranked lowest, with a weight of 8.60%, due to its limited alignment with the company’s requirements. The novelty of this study lies in its integration of statistical validation techniques, such as sensitivity analysis, Pearson correlation, and confidence interval estimation, into the AHP framework to ensure the robustness and reliability of the results. This hybrid approach enhances confidence in supplier rankings and addresses potential subjectivity in traditional decision-making methods. Theoretically, this research contributes to the body of knowledge on multi-criteria decision-making by demonstrating the application of AHP in a real-world context, particularly in the apparel industry. Practically, it provides a replicable framework for businesses seeking to evaluate and select suppliers based on key operational criteria, thus improving supply chain efficiency and cost-effectiveness. The study also offers valuable insights for businesses looking to reduce risks in supplier selection and enhance supplier relationships. This study contributes to sustainable development by promoting responsible supplier selection aligned with SDGs such as Decent Work and Economic Growth (SDG 8) and Responsible Consumption and Production (SDG 12), enhancing supply chain sustainability in the apparel industry.