Evaluating performance of Iranian cement firms using an integrated fuzzy AHP–VIKOR method

In today’s competitive environment, a firm’s performance evaluation and its comparison with other companies is an important issue for investors, creditors and companies in order to reach their investment goals. They can also develop their place to increase their revenue. The aim of this study is presenting a model based on fuzzy analytic hierarchy process (FAHP) and VIKOR (Vlse Kriterijumska Optimizacija Kompromisno Resenje) method. This combined method (fuzzy AHP–VIKOR) in the firm’s performance evaluation is presented by financial ratios. In this research, the proposed method is utilized in evaluating the performance of 27 Iranian cement firms in the Tehran stock exchange market for 2 years (2008 and 2009), separately. The FAHP method is used to determine weights of criteria taking the subjective judgments of decision makers. VIKOR method is then applied for ranking the firms.