* Corresponding author. Tel: +982188872548 E-mail addresses: milad_aghaee1365@yahoo.com (M. Aghaee) © 2012 Growing Science Ltd. All rights reserved. doi: 10.5267/j.msl.2012.01.024 Management Science Letters 2 (2012) 995–1004 Contents lists available at GrowingScience Management Science Letters homepage: www.GrowingScience.com/msl An Integrated MCDM Method in Ranking BSC Perspectives and key Performance Indicators (KPIs) Mohsen Alvandi a , Safar Fazli a , Leila Yazdani a and Milad Aghaee b* a Faculty of Social Science, Department of Industrial Management, Imam Khomeini University, Qazvin, Iran b Faculty of Logistics and Administrative Science, Logistics Department, Police University, Tehran, Iran A R T I C L E I N F O A B S T R A C T Article history: Received September 10, 2011 Received in Revised form October, 30, 2011 Accepted 10 January 2012 Available online 23 January 2012 The balanced scorecard (BSC) approach is an effective technique for performance evaluation. BSC can better reflect the dependence and feedback problems of each factor in real world situations. This study aims at developing a set of appropriate key performance indicators according to (BSC) approach for SAPCO using multiple criteria decision making(MCDM) method. We provide key performance indicators through literature reviews and experts' idea in SAPCO, which is one of the biggest vehicle spare suppliers in Iran. The proposed study uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP), respectively to measure the casual relationship between the perspectives as well as the relative weights. The results based on ANP method shows that ‘‘Customer’’ is the most influential factor. In addition, internal process, financial and learning and growth are in two to four positions. Three important key performance indicators are as bellow: Total price of parts, Customer satisfaction and Lack of parts in production. © 2012 Growing Science Ltd. All rights reserved. Keywords: Balanced Scorecard Perspectives Key Performance Indicator (KPI) Decision Making Trial and Evaluation Laboratory (DEMATEL) Analytic Network Process (ANP) 1. Introduction In recent years, changes in the global economic and financial environment have resulted in changes in the marketplace. The growth and profit in the global competition will be possible by key questions such as: What are the mission and vision of our company and what strategies would guide us to the predefined goals. To do so, there are different strategy models such as Porter five big forces, SWOT and finally BSC model. Kaplan and Norton (1992) are believed to be the first who introduced the idea of balanced score card (BSC). Since then, the idea of BSC has been widely used in wide areas of sciences. Kaplan and Norton (1996) stated that the financial topics do not necessarily represent the main success factors of an organization. Abran and Buglione (2003) incorporated BSC with QEST model in technology sector. Davis and Albright (2004) implemented a comprehensive study on the relationship between the BSC factors and key financial figures. Kaplan and Norton (2004) explained various methods on changing intangible assets into value-added wealth. On the other word, when a BSC is properly designed it is possible to build a cause and effect relationship between the financial