A fuzzy MCDM approach for evaluating steel industry performance based on balanced scorecard: A case in Iran

The world manufacturing sector is facing massive challenges to survive in today´s global and volatile market place. In an attempt to overcome these challenges, companies are adopting newer method to performance evaluation of industries and Small & Medium Size Enterprises (SME). The purpose of this study is to construct balanced score card (BSC) for steel industries. This research summarizes the evaluation indexes synthesized from the literatures relating to company performance first. Then, it introduces indexes for performance evaluation selected through experts´ questionnaires. Furthermore, the relative weights of the chosen evaluation indexes are calculated by Fuzzy Analytic Hierarchy Process (FAHP). Weights of each criterion are described by linguistic terms which can be expressed in triangular fuzzy numbers. Fuzzy TOPSIS method, which is one of Multiple Criteria Decision Making (MCDM) analytical tool, is used to rank three mills´ performance by calculating the distances to both the fuzzy positive-ideal solution (FPIS) and fuzzy negative-ideal solution (FNIS) simultaneously according to three case studies as empirical examples.