A System Dynamics Approach to Assessing Sustainability Performance of LARG Supply Chain Management Practices in Auto Parts Industry

Subject Areas : Management (Operations Research)

Mehdi Toloie Eshlaghy ¹ ( Ph.D. Candidate, Department of Industrial management, Science and Research Branch, Islamic Azad University, Tehran, Iran )
Abbas Toloie Eshlaghy ² ( Department of Economic and Management, Science and Research Branch, Islamic Azad University, Tehran )
Seyed Mohammad Seyed Hosseini ³ ( Professor, Department of Industrial Engineering, Faculty of Industrial Engineering, University of Science and Technology, Tehran, Iran )

Received: 2020-04-30 Accepted : 2020-07-29 Published : 2021-12-22

Keywords: "Sustainability", "Auto parts Supply Chain", "System Dynamics", "Fuzzy DEMATEL", "Fuzzy Analytic Network Process",

Abstract :

Growing global pressures for higher industrial sustainability has persuaded organizations to implement new managerial techniques at all organizational levels to achieve supply chain sustainability. However, such novel management practices should be measured in terms of the extent to which they may promote sustainability performance. The purpose of this study was, thus, to examine the dynamic behavior of LARG supply chain management practices and their impact on sustainability in the auto parts supply chain. Expert views were utilized in the present study to prioritize the LARG practices to achieve sustainability through fuzzy DEMATEL and the fuzzy analysis network process to present an integrated approach to LARG practices. Finally, the system dynamic approach was employed to assess the sustainability performance of LARG supply chain management practices. The finding indicated theAuto parts Supply Chain, Fuzzy Analytic Network Process, Fuzzy DEMATEL, System Dynamics, Sustainability significant role of improvement scenarios in the implementation of comprehensive quality management and punctual production, and thereby, in supply chain sustainability. The proposed model can assist industrial managers and decision makers to identify and adopt effective practices on sustainability in LARG supply chain management.

References:

Ahi, P., Jaber, M. Y., & Searcy, C. (2016). A comprehensive multidimensional framework for assessing the performance of sustainable supply chains. Applied Mathematical Modelling, 40(23–24), 10153–10166.

Ahi, P., & Searcy, C. (2015). An analysis of metrics used to measure performance in green and sustainable supply chains. Journal of Cleaner Production, 86, 360–377.

Amrina, E., & Yusof, S. M. M. (2011). Key performance indicators for sustainable manufacturing evaluation in automotive companies. Industrial Engineering and Engineering Management (IEEM), 2011 IEEE International Conference On.

Azadi, M., Jafarian, M., Farzipoor Saen, R., & Mirhedayatian, S. M. (2015). A new fuzzy DEA model for evaluation of efficiency and effectiveness of suppliers in sustainable supply chain management context. Computers & Operations Research, 54, 274–285.

Azevedo, S. G., & Carvalho, H; Cruz-Machado, V. (2011). The Influence of LARG Supply Chain Management Practices on Manufacturing Supply Chain Performance, 1–6.

Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2016). LARG index: A benchmarking tool for improving the leanness, agility, resilience and greenness of the automotive supply chain. Benchmarking, 23(6), 1472–1499.

Azevedo, Susana G, Govindan, K., Carvalho, H., & Cruz-machado, V. (2013). Ecosilient Index to assess the greenness and resilience of the upstream automotive supply chain. Journal of Cleaner Production, 56, 131–146.

Azevedo, S. G., Carvalho, H., Duarte, S., & Cruz-Machado, V. (2012). Influence of green and lean upstream supply chain management practices on business sustainability. IEEE Transactions on Engineering Management, 59(4), 753–765.

Azevedo, S. G., Govindan, K., Carvalho, H., & Cruz-machado, V. (2013). Ecosilient Index to assess the greenness and resilience of the upstream automotive supply chain. Journal of Cleaner Production, 56, 131–146.

Boukherroub, T., Ruiz, A., Guinet, A., & Fondrevelle, J. (2015). An integrated approach for sustainable supply chain planning. Computers & Operations Research, 54, 180–194. https://doi.org/10.1016/j.cor.2014.09.002

Bourlakis, M., Maglaras, G., Gallear, D., & Fotopoulos, C. (2014). Examining sustainability performance in the supply chain: The case of the Greek dairy sector. Industrial Marketing Management, 43(1), 56–66.

Caiado, R. G. G., Quelhas, O. L. G., Nascimento, D. L. M., Anholon, R., & Leal Filho, W. (2018). Measurement of sustainability performance in Brazilian organizations. International Journal of Sustainable Development and World Ecology, 25(4), 312–326.

Caldera, H. T. S., Desha, C., & Dawes, L. (2018). Exploring the role of lean thinking in sustainable business practice: A systematic literature review. Journal of Cleaner Production, 167, 1546–1565.

Carvalho, H., Azevedo, S. G., & Cruz-Machado, V. (2012). Agile and resilient approaches to supply chain management: Influence on performance and competitiveness. Logistics Research, 4(1–2), 49–62.

Carvalho, H., Azevedo, S. G., & Machado, V. C. (2013). An innovative agile and resilient index for the automotive supply chain. International Journal of Agile Systems and Management, 6(3), 259-283.

Chin, T. A., Tat, H. H., & Sulaiman, Z. (2015). Green Supply Chain Management, Environmental Collaboration and Sustainability Performance. Procedia CIRP, 26, 695–699.

Ciccullo, F., Pero, M., Caridi, M., Gosling, J., & Purvis, L. (2018). Integrating the environmental and social sustainability pillars into the lean and agile supply chain management paradigms: A literature review and future research directions. Journal of Cleaner Production, 172, 2336–2350.

Das, K. (2018). International Journal of Production Economics Integrating lean systems in the design of a sustainable supply chain model. International Journal of Production Economics, 198, 177–190.

De, D., Chowdhury, S., Dey, P. K., & Ghosh, S. K. (2020). Impact of Lean and Sustainability oriented innovation on Sustainability performance of Small and Medium Sized Enterprises: A Data Envelopment Analysis-based Framework. International Journal of Production Economics, 219, 416-430.

Duarte, S., & Machado, V. C. (2011). Manufacturing paradigms in supply chain management. International Journal of Management Science and Engineering Management, 6(5), 328–342.

Elkington, J. (1998). Cannibals with forks : the triple bottom line of 21st century business. Gabriola Island, BC; Stony Creek, CT: Gabriola Island, BC : New Society Publishers, 1-407.

Elleuch, H. (2016). Resilience and Vulnerability in Supply Chain : Literature review. IFAC-PapersOnLine, 49(12), 1448–1453.

Erol, I., Sencer, S., & Sari, R. (2011). A new fuzzy multi-criteria framework for measuring sustainability performance of a supply chain. Ecological Economics, 70(6), 1088-1100.

Espadinha-Cruz, P., & Cabral, I. (2015). Information Model for LARGeSCM Interoperable Practices. Proceedings of the ITI 2012 34th International Conference on Information technology interfaces, 23–28.

Fallahpour, A., Udoncy Olugu, E., Nurmaya Musa, S., Yew Wong, K., & Noori, S. (2017). A decision support model for sustainable supplier selection in sustainable supply chain management. Computers and Industrial Engineering, 105, 391-410.

Farooq, O., Farooq, M., & Reynaud, E. (2019). Does employees’ participation in decision making increase the level of corporate social and environmental sustainability? An investigation in South Asia. Sustainability (Switzerland), 11(2), 1-511.

Fang, C., & Zhang, J. (2018). Performance of green supply chain management : A systematic review and meta analysis. Journal of Cleaner Production, 183, 1064–1081.

Foo, P. Y., Lee, V. H., Tan, G. W. H., & Ooi, K. B. (2018). A gateway to realising sustainability performance via green supply chain management practices: A PLS–ANN approach. Expert Systems with Applications, 107, 1–14.

Gary, L., Amos, N. H. C., & Tehseen, A. (2018). Towards strategic development of maintenance and its effects on production performance by using system dynamics in the automotive industry. International Journal of Production Economics, 200, 151–169.

Geng, R., Mansouri, S. A., & Aktas, E. (2016). Author ’ s Accepted Manuscript empirical evidences in Asian emerging economies. Intern. Journal of Production Economics, 183, 1-318.

Gopal, P. R. C., & Thakkar, J. (2016). Sustainable supply chain practices: an empirical investigation on Indian automobile industry. Production Planning & Control, 27(1), 49–64.

Govindan, K., Khodaverdi, R., & Jafarian, A. (2013). A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, 345–354.

Govindan, K., Khodaverdi, R., & Vafadarnikjoo, A. (2015). Intuitionistic fuzzy based DEMATEL method for developing green practices and performances in a green supply chain. Expert Systems with Applications, 42(20), 7207–7220.

Govindan, K., Azevedo, S. G., Carvalho, H., & Cruz-Machado, V. (2014). Impact of supply chain management practices on sustainability. Journal of Cleaner Production, 85, 212–225.

Habibi, Arash., Izadyar, Sedigheh., Sarafrazi, Azam (2014). Fuzzy multi-criteria decision making. Rasht, Katibe Gil [in persian].

Hajmohammad, S., Vachon, S., Klassen, R. D., & Gavronski, I. (2013). Reprint of Lean management and supply management : their role in green practices and performance q. Journal of Cleaner Production, 56, 86–93.

Jakhar, S. K., Rathore, H., & Mangla, S. K. (2018). Is lean synergistic with sustainable supply chain? An empirical investigation from emerging economy. Resources, Conservation and Recycling, 139, 262–269.

Henao, R., Sarache, W., & Gómez, I. (2019). Lean manufacturing and sustainable performance: Trends and future challenges. Journal of Cleaner Production, 208, 99–116.

Iranmanesh, M., Zailani, S., Hyun, S., Ali, M., & Kim, K. (2019). Impact of Lean Manufacturing Practices on Firms’ Sustainable Performance: Lean Culture as a Moderator. Sustainability, 11(4), 1112.

Izadikhah, M., & Farzipoor Saen, R. (2016). Evaluating sustainability of supply chains by two-stage range directional measure in the presence of negative data. Transportation Research Part D: Transport and Environment, 49, 110-126.

Kafa, N., Hani, Y., & El Mhamedi, A. (2013). Sustainability performance measurement for green supply chain management, 46(24), 71-78.

Küçükbay, F., & Sürücü, E. (2019). Corporate sustainability performance measurement based on a new multicriteria sorting method. Corporate Social Responsibility and Environmental Management, (October 2017), 1–17.

Labuschagne, C., Brent, A. C., & Van Erck, R. P. G. (2005). Assessing the sustainability performances of industries. Journal of Cleaner Production, 13(4), 373–385.

Lotfi, M., & Saghiri, S. (2018). Disentangling resilience, agility and leanness. Journal of Manufacturing Technology Management, 29(1), 168–197.

Luthra, S., Garg, D., & Haleem, A. (2016). The impacts of critical success factors for implementing green supply chain management towards sustainability: an empirical investigation of Indian automobile industry. Journal of Cleaner Production, 121, 142–158.

Madan Shankar, K., Kannan, D., & Udhaya Kumar, P. (2017). Analyzing sustainable manufacturing practices – A case study in Indian context. Journal of Cleaner Production, 164, 1332–1343.

Mathivathanan, D., Kannan, D., & Haq, A. N. (2018). Sustainable supply chain management practices in Indian automotive industry: A multi-stakeholder view. Resources, Conservation and Recycling, 128, 284–305.

Muduli, K., Govindan, K., Barve, A., & Geng, Y. (2013). Barriers to green supply chain management in Indian mining industries: A graph theoretic approach. Journal of Cleaner Production, 47, 335–344.

Orji, I. J., & Liu, S. (2018). A dynamic perspective on the key drivers of innovation-led lean approaches to achieve sustainability in manufacturing supply chain. International Journal of Production Economics, 219, 480-496.

Pagell, M; & Wu, Z. (2009). Building a more complete theory of sustainable supply chain management using case studies of 10 exemplars. Journal of Supply Chain Management, 45(2), 37–56.

Parveen, C. M., Kumar, A. R. P., & Narasimha Rao, T. V. V. L. (2011). Integration of lean and green supply chain - Impact on manufacturing firms in improving environmental efficiencies. Proceedings of the International Conference on Green Technology and Environmental Conservation, GTEC-2011, 143–147.

Parveen, M., & Rao, T. V. V. L. N. (2009). An integrated approach to design and analysis of lean manufacturing system: a perspective of lean supply chain. International Journal of Services and Operations Management, 5(2), 175.

Rajeev, A., Pati, R. K., Padhi, S. S., & Govindan, K. (2017). Evolution of sustainability in supply chain management: A literature review. Journal of Cleaner Production, 162, 299–314.

Ruiz-Benitez, R., López, C., & Real, J. C. (2019). Achieving sustainability through the lean and resilient management of the supply chain. International Journal of Physical Distribution & Logistics Management, 49(2), 122–155.

Ruiz-Benítez, R., López, C., & Real, J. C. (2018). The lean and resilient management of the supply chain and its impact on performance. International Journal of Production Economics, 203, 190–202.

Safaei Ghadikilai, Abdolhamid; GholamReza Tababar Div Kalayi, Zahra (2014). Definition of a framework for assessing the sustainability of food supply chain using the Fuzzy Network Analysis Process (Case study: Selected companies producing meat products in Mazandaran province). Industrial Management Journal.  6(3), 535-554[in persian].

Shamsuddoha, M. (2015). Integrated supply chain model for sustainable manufacturing: A system dynamics approach. Advances in Business Marketing and Purchasing, 22, 155–399.

Thanki, S., & Thakkar, J. (2018). A quantitative framework for lean and green assessment of supply chain performance. International Journal of Productivity and Performance Management, 67(2), 366–400.

Vanalle, R. M., Ganga, G. M. D., Godinho Filho, M., & Lucato, W. C. (2017). Green supply chain management: An investigation of pressures, practices, and performance within the Brazilian automotive supply chain. Journal of Cleaner Production, 151, 250-259.