GREEN SUPPLY CHAIN: ANALYSIS & PERFORMANCE MEASUREMENT DRIVEN BY ENVIRONMENTAL PRESSURE CONSIDERATION

Abstract

It has been increasing in consciousness of the environment in the last few decades. Wide diffusion of consumer goods and shortening of product life cycle have caused there to be an increasing quantities of used products being discarded. More people are aware of the world's environmental problems such as global warming, toxic substance usage, and decreasing in non-replenish resources. The Government has released campaigns to promote this problem to people. Several organizations responded to this by applying green principles to their company, such as using environmental friendly raw material, reducing the usage of petroleum power, and using the recycle papers for packaging. The green principles were expanded to many departments within organization, including supply chain. Green supply chain management (GSCM) was emerging in the last few years. This idea covers every stage in manufacturing from the first to the last stage of life cycle, i.e. from product design to recycle. Not only manufacturing, but GSCM . can also be used to other business sectors such as government, education and services. GSCM is a relatively new green issue for the majority of Corporations. Adding the "green" component to supply chain management involves addressing the influence and relationships of supply chain management to the natural environment. Moreover, there are certain barriers associated with the implementation of green supply chain yet in today era. This thesis addressed the performance of green supply chain using a tool System Dynamics of available software Stella 5.5. Started with a generic process model showing all possible re's in a process. Various barriers and results are identified with the help of interpretative structural modeling (ISM).then followed by an industry (pulp & paper mill) oriented case study. This project develops a valid System Dynamics methodology for long term capacity decision-making in supply chain of Ruchira Papers Ltd. Keywords: Supply Chain, Green, Green Supply Chain, Closed loop Supply Chain, Green Supply Chain Management, Interpretative Structural Modeling, System Dynamics and Variables (barriers & results).