How to evaluate sustainability of supply chains? A dynamic network DEA approach

• Published in: Industrial management + data systems 2017-10, Vol.117 (9), p.1866-1889
• Main Authors: Shokri Kahi, Vahid, Yousefi, Saeed, Shabanpour, Hadi, Farzipoor Saen, Reza
• Format: Article
• Language: English
• Subjects: Big Data; Competition; Competitive advantage; Computational efficiency; Computing time; Data envelopment analysis; Data management; Decision making; Efficiency; Links; Literature reviews; Mathematical models; Operations research; Optimization; Production management; Social responsibility; Studies; Supply chain management; Supply chains; Sustainability; Variation
• ISSN: 0263-5577; 1758-5783
• DOI: 10.1108/IMDS-09-2016-0389

Purpose The purpose of this paper is to develop a novel network and dynamic data envelopment analysis (DEA) model for evaluating sustainability of supply chains. In the proposed model, all links can be considered in calculation of efficiency score. Design/methodology/approach A dynamic DEA model to evaluate sustainable supply chains in which networks have series structure is proposed. Nature of free links is defined and subsequently applied in calculating relative efficiency of supply chains. An additive network DEA model is developed to evaluate sustainability of supply chains in several periods. A case study demonstrates applicability of proposed approach. Findings This paper assists managers to identify inefficient supply chains and take proper remedial actions for performance optimization. Besides, overall efficiency scores of supply chains have less fluctuation. By utilizing the proposed model and determining dual-role factors, managers can plan their supply chains properly and more accurately. Research limitations/implications In real world, managers face with big data. Therefore, we need to develop an approach to deal with big data. Practical implications The proposed model offers useful managerial implications along with means for managers to monitor and measure efficiency of their production processes. The proposed model can be applied in real world problems in which decision makers are faced with multi-stage processes such as supply chains, production systems, etc. Originality/value For the first time, the authors present additive model of network-dynamic DEA. For the first time, the authors outline the links in a way that carry-overs of networks are connected in different periods and not in different stages.