The purpose of this paper is to present an approach to effective supply chain management by understanding the dynamics between various enablers of agile supply chain. Today’s business environment is characterized as a highly competitive, dynamic and volatile market. Agile supply chain is seen as the winning strategy to be adopted by manufacturers bracing themselves for dramatic performance enhancements to become national and international leaders.
Using interpretive structural modeling the research presents a hierarchy-based model and the mutual relationships among the enablers of agile supply chain.
The research shows that there exists a group of enablers having a high driving power and low dependence requiring maximum attention and of strategic importance, whereas another group consists of those variables which have high dependence and are the resultant actions.
This classification provides a useful tool to supply chain managers to differentiate between independent and dependent variables and their mutual relationships which would help them to focus on those key variables that are most important for building cost-effective and agile supply chains.
Presentation of enablers in a hierarchy and the classification into driver and dependent categories is unique effort in the area of agile supply chain management.
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