Determination of Optimal Manufacturing Strategy using a Modified Interpretive Structural Modeling Method and Linear Programming Model

To construct and understand the fundamental of relationships among elements in complicated systems on the base of expert(s) opinions, using interpretive structural modeling (ISM) methodology is beneficial. In this paper, for considering consistency rate of expert(s) and obtaining hierarchy of elements (without any loop), a modified ISM method is proposed. These experts have agreement to each other in their decision and objectives about manufacturing strategy determination. Manufacturing strategy can be dependent on successive decisions for improving manufacturing capabilities in various stages to obtain competitive advantage in the market. For determination of optimal manufacturing strategy, an algorithm is proposed using modified ISM method and linear programming (LP) model. At first, an activity-oriented manufacturing capabilities network (without any loop) is created using modified ISM method. Then, the alternatives of manufacturing strategy are made by considering expert(s) opinions and adding virtual arcs to the network. The alternatives of action plans of manufacturing strategy are created by solving LP model of each obtained network. The above steps will be repeated if expert(s) do not confirm the results or do not find any desirable action plan through proposed alternatives. Finally, this algorithm is applied in a case study.