Interrelationship Performance Indicators Model of Agile Supply Chain Management in Palm Oil Industry

Abstract

This paper tries to model agile supply chain management performance indicators in the palm oil industry. The interpretative Structural Modeling (ISM) method is used to find the relationship between these indicators. The ISM stages begin with identifying indicators, compiling contextual relationships, compiling reachability matrices, compiling level partitions, compiling digraphs, and compiling ISM models. Then MICMAC analysis is used to group each of these indicators into four categories based on their driving power and dependence power. In this study, 16 hands of agile supply chain management in the palm oil industry were obtained, of which the four-level ISM  model could be constructed. Two indicators are at level 4, six hands are at level 3, three indicators are at level 2, and five indicators are at level 1. Meanwhile, through MICMAC analysis, five indicators are found in the independent indicators category, six hands are in the linkage indicator category, four indicators are included in the dependent indicator category, and one indicator is in the autonomous indicator category. This research can be used by managers in the palm oil industry who want to increase agility in their supply chain. In general, indicators at level 4 can affect indicators at level 3, and so on. So that management can start fixing the indicators at level 4 first. In addition, indicators that have a driving power value in MICMAC analysis can be prioritized to improve their performance.