The application of ISM model in evaluating agile suppliers selection criteria and ranking suppliers using fuzzy TOPSIS-AHP methods

Abstract

In the present competitive world, the organizations need to endeavor constantly so as to make progress as well as maintaining their current position through employing the appropriate strategies. Organizations surroundings have been undergoing rapid changes among which the different demands and the variety of customers are to be mentioned. The scarce and limited number of sources and facilities are also worth being cited as another example of an important restrictions placed on companies. One way to bring down these problems is employing agile suppliers and outsourcing appropriately. The current study results from two theses completed in the fields of agility and ISM. It begins with identifying the criteria to evaluate agile suppliers. Then these factors are ranked and categorized using the interpretive structural model. The results of this study depict that the delivery speed variable lays on the bottom level of the model outlet with quite high driving power. The delay reduction variable has the same characteristics. Next, using fuzzy hierarchical analysis method, the weight of the agility evaluation criteria of suppliers are measured and put as TOPSIS model input. Finally, six suppliers are rated using fuzzy TOPSIS method. The results of this study shows that the criteria with higher driving power and lower dependence have higher weight in AHP model. It is, therefore, necessary to focus on variables of the first and second level of model in order to increase suppliers’ agility. In this study, the weight of data has been determined using hierarchical analysis so as to increase the efficiency of the results of fuzzy TOPSIS technique. At the same time, interpretive structural model has been also employed to interpret the effects of the criteria on suppliers.