Sustainability in Supply Chains: Models and Metrics

Abstract

In this dissertation, we study several quantitative approaches centered on supply chain management, sustainability development, performance measurement frameworks, and environmental regulation mechanisms. The topic of sustainability has been of great interest for the past few years in academia. Many governments also have taken actions to incentivize firms to reduce their negative environmental and social impacts. It is unclear, however, how successful policy makers have been in reducing the sustainability threats. This raises the question of ``how can policy makers play an effective role in helping businesses become more sustainable, while complying with entrepreneurs and investors' expectations?'' This dissertation is organized on the basis of six chapters. Having reviewed the literature and research directions of sustainable supply chain management in Chapter 1, we present a review of sustainability performance measurement frameworks in Chapter 2. In addition to proposing a framework to assess sustainability efficiency in supply chains, we discuss research questions with a focus on the social aspect of sustainability development. In Chapter 3, we develop a two-stage data envelopment analysis model with an application to the energy sector. This approach measures relative efficiencies of a number of comparable decision makers and does not require predetermined weights of indicators. We relax some restricting assumptions used in previous studies and obtain a nonlinear problem, for which we develop a solution method. Chapter 4 investigates a more general multi-stage assessment framework that monitors suppliers, manufacturers, distributers, and retailers' sustainable practices. The major finding is developing a multi-stage data envelopment analysis to measure supply chains' sustainability efficiency. In Chapter 5, we investigate market-based schemes with a focus on curbing pollution emitted by business entities and develop a game-theoretic formulation. Finally, we summarize the major contributions of this dissertation and future research directions in Chapter 6.