Sustainable Supplier Selection of E‐Commerce Industry in Bangladesh: An Integrated TOPSIS‐AHP Approach

ABSTRACT In Bangladesh's rapidly expanding e‐commerce sector, selecting sustainable suppliers is crucial for ensuring long‐term business viability and environmental accountability. This study develops an integrated decision‐making framework by combining the Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to evaluate and rank suppliers based on cost, lead time, environmental impact, labor practices, and social responsibility. Expert judgment was used to assign weights to these criteria using AHP, with environmental impact emerging as the most significant factor. The AHP consistency ratio (CR) was found to be 0.02, indicating acceptable consistency. TOPSIS was then applied to assess 15 suppliers, identifying Supplier K as the most sustainable option, followed by Suppliers C and I. Sensitivity analysis showed that Supplier K consistently ranked #1 in 9 out of 10 different weight scenarios. The final criteria weights were: environmental impact 42.8%, lead time 7%, cost 4%, labor practices 23%, and social responsibility 22%.