An integrated approach for performance evaluation in sustainable supply chain networks (with a case study)

• Published in: Journal of cleaner production 2016-11, Vol.137, p.579-597
• Main Authors: Motevali Haghighi, S., Torabi, S.A., Ghasemi, R.
• Format: Article
• Language: English
• Subjects: Balanced scorecard; Data envelopment analysis; Indicators; Mathematical models; Networks; Performance evaluation; Plastic recycling; Sensitivity analysis; Strategy; Supply chains; Sustainability; Sustainable supply chain
• ISSN: 0959-6526; 1879-1786
• DOI: 10.1016/j.jclepro.2016.07.119

This paper proposes a novel hybrid BSC-DEA framework for performance evaluation in sustainable supply chains. The proposed DEA model is capable of dealing with both qualitative and quantitative indicators while accounting for desirable and undesirable indicators. A tailored network DEA model involving a set of comprehensive sustainability indicators is applied to rank different supply chains from sustainability viewpoint to find the efficient and benchmarked units at each echelon. Then, sustainability indicators are classified into four groups according to BSC perspectives to help policy makers and top managers to have a more comprehensive and thorough understanding of the sustainability with respect to the long- and short term strategies. Finally, a number of sensitivity analyses are performed to identify the effective factors and strengths and weaknesses of each supply chain are identified based on BSC perspectives. To demonstrate the capabilities of the proposed approach, this framework is implemented for performance evaluation of plastic recycling companies in Mazandaran and Golestan provinces of Iran and some helpful managerial insights are derived from the numerical results. •Developing a hybrid DEA-BSC model for performance evaluation in sustainable supply chains.•Proposing a novel network DEA model capable of dealing with both qualitative and quantitative indicators.•Proposing a novel network DEA model capable of dealing with desirable and undesirable outputs.•Identifying the most effective sustainability factors for plastic recycling industry.•Assessing the sustainability performance of a number of plastic recycling companies as a case study.