Abstract
In managing the situational factors to improve the performances of production and inventory control systems, the sequence for managing the factors should not be arbitrarily decided, since the factors are not independent but are inter-related. To determine the suitable sequence, the inter-relationships among the situational factors are studied. Based on these relationships, a hierarchy of the factors is obtained by using Fuzzy Interpretative Structural Modelling (FISM). In addition, indirect relationships between the factors are also studied. Based on their driver power and dependence, the factors are classified into sectors. The approach presented can be used as a guideline for determining the sequence for managing the situational factors.