Evaluating strategies for environmental sustainability in a supply chain of an emerging economy

Abstract

Due to an increased pressure to be environmentally sustainable, many manufacturing organizations, especially from developing countries like Bangladesh, are attempting to make necessary changes in practices and supply chains. However, those attempts need to be applied strategically with the objective to be both environmentally sustainable and economically viable. This paper offers a decision-making methodology by integrating a fuzzy cognitive map (FCM) and data envelopment analysis (DEA) for evaluating strategies for environmental sustainability based on their impact on the overall supply chain network of an organization. This paper first identifies 18 generic strategies for environmental sustainability and three supply chain performance measurement (PM) factors. Afterwards, the cause-effect relationships among these strategies and PM factors are utilized to capture the complicated relationships by FCM. The extended delta rule (EDR) learning algorithm was used in association with FCM to quantify the impact of those strategies on supply chain PM factors. Finally, DEA is used to prioritize strategies using these impact values. A real-life case using a fast-moving consumer goods (FMCG) manufacturer from Bangladesh is presented to justify the applicability of the proposed methodology. The results reflect the usefulness of this methodology for evaluating strategies for environmental sustainability in a supply chain (SC), specifically in the FMCG sector of an emerging economy. Thus, other manufacturing organizations from any industry can use this methodology to evaluate strategies for environmental sustainability.