An integrated principal component analysis and multi-criteria decision-making approach for supplier selection in the garment supply chain

One of the important stages of Supply Chain Management (SCM) is supplier selection. SS is one of main problems encountered by businesses. Due to increasing competition today, businesses have begun to attach importance to SS problems. They focus on various studies to ensure sustainable relationships in the long term. This study presents a hybrid approach to selecting the most suitable supplier in the garment industry. First, the Principal Component Analysis (PCA) method was applied to reduce the criterion. Then, the criterion weights were calculated with entropy. Finally, the criteria were ranked with the Technique for Order Preference by Similarity to An Ideal Solution (TOPSIS) method. The most suitable supplier was selected according to the ranking. Sensitivity analysis was employed to assess the impact of criteria changes depending on the weights. It was compared with EWM-TOPSIS and VIseKriterijumsa Optimizacija I Kompromisno Resenje, Elimination and Choice Translating Reality (VIKOR) method without criteria reduction. The proposed model will provide the opportunity to determine a more suitable supplier in many aspects for businesses of garment manufacturers.