Share:


Evaluating complex decision and predictive environments: the case of green supply chain flexibility

    Chunguang Bai Affiliation
    ; Joseph Sarkis Affiliation

Abstract

Supply chain flexibility is an important operations strategy dimension for organizations to achieve and maintain competitive advantage. With rising greener customer expectations and increasingly stringent environmental regulations, green supply chains are now viewed as another competitive weapon. Green supply chains are characterized by higher complexity and turbulence. Green supply chain flexibility can aid organizations function in this complex and uncertain environment, yet investigation into this area is very limited. This paper aims contribute to this field by investigating green supply chain flexibility achievement through information systems. This paper introduces a green supply chain flexibility matrix framework. Given the large data needs, as described in the matrix, a novel probability evaluation methodology that can help predict rankings of projects and programs is introduced. The methodology extends a TOPSIS based three-parameter interval grey number (TpGN) approach by incorporating neighborhood rough set theory (RST) to evaluate IS programs’ green flexibility support capability. The results of this methodology are more objective and effective for two reasons. (1) The results are predictive rankings based on probability degree instead of the fixed deterministic ranks. (2) Neighborhood rough set theory used in this study can limit loss of information when compared to rough set theory, yet still simplify extensive data sets. This paper also identifies study limitations and future research directions for green supply chain flexibility.

Keyword : flexibility, green supply chain, information systems, probability evaluation methodology, rough set, TOPSIS, grey number

How to Cite
Bai, C., & Sarkis, J. (2018). Evaluating complex decision and predictive environments: the case of green supply chain flexibility. Technological and Economic Development of Economy, 24(4), 1630-1658. https://doi.org/10.3846/20294913.2018.1483977
Published in Issue
Aug 28, 2018
Abstract Views
1644
PDF Downloads
1152
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Agarwal, A., Shankar, R., & Tiwari, M. K. (2006). Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach. European Journal of Operational Research, 173(1), 211-225. https://doi.org/10.1016/j.ejor.2004.12.005

Bai, C., & Sarkis, J. (2017). Improving green flexibility through advanced manufacturing technology investment: Modeling the decision process. International Journal of Production Economics, 188, 86-104. https://doi.org/10.1016/j.ijpe.2017.03.013

Bai, C., & Sarkis, J. (2010). Integrating sustainability into supplier selection with grey system and rough set methodologies. International Journal of Production Economics, 124(1), 252-264. https://doi.org/10.1016/j.ijpe.2009.11.023

Bai, C., & Sarkis, J. (2013a). Flexibility in reverse logistics: a framework and evaluation approach. Journal of Cleaner Production, 47, 306-318. https://doi.org/10.1016/j.jclepro.2013.01.005

Bai, C., & Sarkis, J. (2013b). Green information technology strategic justification and evaluation. Information Systems Frontiers, 15(5), 831-847. https://doi.org/10.1007/s10796-013-9425-x

Bai, C., Dhavale, D., & Sarkis, J. (2016). Complex investment decisions using rough set and fuzzy c-means: An example of investment in green supply chains. European Journal of Operational Research, 248(2), 507-521. https://doi.org/10.1016/j.ejor.2015.07.059

Bai, C., Fahimnia, B., & Sarkis, J. (2015b). Sustainable transport fleet appraisal using a hybrid multiobjective decision making approach. Annals of Operations Research, 250(2), 309-340. https://doi.org/10.1007/s10479-015-2009-z

Bai, C., Sarkis, J., & Dou, Y. (2015a). Corporate sustainability development in China: review and analysis. Industrial Management & Data Systems, 115(1), 5-40. https://doi.org/10.1108/IMDS-09-2014-0258

Bai, C., Sarkis, J., Wei, X., & Koh, L. (2012). Evaluating ecological sustainable performance measures for supply chain management. Supply Chain Management: An International Journal, 17(1), 78-92. https://doi.org/10.1108/13598541211212221

Blome, C., Schoenherr, T., & Eckstein, D. (2014). The impact of knowledge transfer and complexity on supply chain flexibility: A knowledge-based view. International Journal of Production Economics, 147(Part B), 307-316. https://doi.org/10.1016/j.ijpe.2013.02.028

Blome, C., Schoenherr, T., & Rexhausen, D. (2013). Antecedents and enablers of supply chain agility and its effect on performance: a dynamic capabilities perspective. International Journal of Production Research, 51(4), 1295-1318. https://doi.org/10.1080/00207543.2012.728011

Braunscheidel, M. J., & Suresh, N. C. (2009). The organizational antecedents of a firm’s supply chain agility for risk mitigation and response. Journal of Operations Management, 27(2), 119-140. https://doi.org/10.1016/j.jom.2008.09.006

Cachon, G. P., & Fisher, M. (2000). Supply chain inventory management and the value of shared information. Management Science, 46(8), 1032-1048. https://doi.org/10.1287/mnsc.46.8.1032.12029

Chandra, C., & Grabis, J. (2009). Role of flexibility in supply chain design and modeling – Introduction to the special issue. Omega, 37(4), 743-745. https://doi.org/10.1016/j.omega.2008.07.003

Chen, S. J., & Hwang, C. L. (1992). Fuzzy multiple attribute decision making methods, In Fuzzy multiple attribute decision making (pp. 289-486). Berlin, Heidelberg: Springer. https://doi.org/10.1007/978-3-642-46768-4_5

Chryssolouris, G., & Lee, M. (1992). An assessment of flexibility in manufacturing systems. Manufacturing Review, 5(2), 105-116.

Chuu, S. J. (2011). Interactive group decision-making using a fuzzy linguistic approach for evaluating the flexibility in a supply chain. European Journal of Operational Research, 213(1), 279-289. https://doi.org/10.1016/j.ejor.2011.03.022

Das, K. (2011). Integrating effective flexibility measures into a strategic supply chain planning model. European Journal of Operational Research, 211(1), 170-183. https://doi.org/10.1016/j.ejor.2010.12.006

Deng, J. L. (1989). Introduction to grey system theory. The Journal of Grey System, 1(1), 1-24.

Duclos, L. K., Vokurka, R. J., & Lummus, R. R. (2003). A conceptual model of supply chain flexibility. Industrial Management & Data Systems, 103(6), 446-456. https://doi.org/10.1108/02635570310480015

Esmaeilikia, M., Fahimnia, B., Sarkis, J., Govindan, K., Kumar, A., & Mo, J. (2016). A tactical supply chain planning model with multiple flexibility options: an empirical evaluation. Annals of Operations Research, 244(2), 429-454. https://doi.org/10.1007/s10479-013-1513-2

Fayezi, S., Zutshi, A., & O’Loughlin, A. (2015). How Australian manufacturing firms perceive and understand the concepts of agility and flexibility in the supply chain. International Journal of Operations & Production Management, 35(2), 246-281. https://doi.org/10.1108/IJOPM-12-2012-0546

Fisher, M. L. (1997). What is the right supply chain for your product?. Harvard Business Review, 75, 105-117.

Garavelli, A. C. (2003). Flexibility configurations for the supply chain management. International Journal of Production Economics, 85(2), 141-153. https://doi.org/10.1016/S0925-5273(03)00106-3

Gligor, D. M., Esmark, C. L., & Holcomb, M. C. (2015). Performance outcomes of supply chain agility: When should you be agile?. Journal of Operations Management, 33, 71-82. https://doi.org/10.1016/j.jom.2014.10.008

Golden, W., & Powell, P. (1999). Exploring inter-organisational systems and flexibility in Ireland: a case of two value chains. International Journal of Agile Management Systems, 1(3), 169-176. https://doi.org/10.1108/14654659910296544

Gong, M., Tan, K. H., Pawar, K., Wong, W. P., & Tseng, M. L. (2015). Information communication technology and sustainable food supply chain: a resource-based analysis. International Journal of Business Performance and Supply Chain Modelling, 7(3), 233-255. https://doi.org/10.1504/IJBPSCM.2015.071611

Gosain, S., Malhotra, A., & El Sawy, O. A. (2004). Coordinating for flexibility in e-business supply chains. Journal of Management Information Systems, 21(3), 7-45. https://doi.org/10.1080/07421222.2004.11045816

Gosling, J., Purvis, L., & Naim, M. M. (2010). Supply chain flexibility as a determinant of supplier selection. International Journal of Production Economics, 128(1), 11-21. https://doi.org/10.1016/j.ijpe.2009.08.029

Hervani, A. A., Helms, M. M., & Sarkis, J. (2005). Performance measurement for green supply chain management. Benchmarking: An International Journal, 12(4), 330-353. https://doi.org/10.1108/14635770510609015

Hu, Q., Yu, D., & Xie, Z. (2008b). Neighborhood classifiers. Expert Systems with Applications, 34(2), 866-876. https://doi.org/10.1016/j.eswa.2006.10.043

Hu, Q., Yu, D., Liu, J., & Wu, C. (2008a). Neighborhood rough set based heterogeneous feature subset selection. Information Sciences, 178(18), 3577-3594. https://doi.org/10.1016/j.ins.2008.05.024

Jin, Y., Vonderembse, M., Ragu-Nathan, T. S., & Smith, J. T. (2014). Exploring relationships among IT-enabled sharing capability, supply chain flexibility, and competitive performance. International Journal of Production Economics, 153, 24-34. https://doi.org/10.1016/j.ijpe.2014.03.016

Karsak, E. E. (2002). Distance-based fuzzy MCDM approach for evaluating flexible manufacturing system alternatives. International Journal of Production Research, 40(13), 3167-3181. https://doi.org/10.1080/00207540210146062

Koste, L. L., Malhotra, M. K., & Sharma, S. (2004). Measuring dimensions of manufacturing flexibility. Journal of Operations Management, 22(2), 171-196. https://doi.org/10.1016/j.jom.2004.01.001

Kumar, V., Fantazy, K. A., Kumar, U., & Boyle, T. A. (2006). Implementation and management framework for supply chain flexibility. Journal of Enterprise Information Management, 19(3), 303-319. https://doi.org/10.1108/17410390610658487

Liang, J., Shi, Z., Li, D., & Wierman, M. J. (2006). Information entropy, rough entropy and knowledge granulation in incomplete information systems. International Journal of General Systems, 35(6), 641-654. https://doi.org/10.1080/03081070600687668

Liu, H., Ke, W., Wei, K. K., & Hua, Z. (2013). The impact of IT capabilities on firm performance: The mediating roles of absorptive capacity and supply chain agility. Decision Support Systems, 54(3), 1452-1462. https://doi.org/10.1016/j.dss.2012.12.016

Luo, D., & Wang, X. (2012). The multi-attribute grey target decision method for attribute value within three-parameter interval grey number. Applied Mathematical Modelling, 36(5), 1957-1963. https://doi.org/10.1016/j.apm.2011.07.074

Luo, D., Wang, X., & Song, B. (2013). Multi-attribute decision-making methods with three-parameter interval grey number. Grey Systems: Theory and Application, 3(3), 305-315. https://doi.org/10.1108/GS-08-2013-0021

Malhotra, M. K., & Mackelprang, A. W. (2012). Are internal manufacturing and external supply chain flexibilities complementary capabilities?. Journal of Operations Management, 30(3), 180-200. https://doi.org/10.1016/j.jom.2012.01.004

Martínez Sánchez, A., & Pérez Pérez, M. (2005). Supply chain flexibility and firm performance: a conceptual model and empirical study in the automotive industry. International Journal of Operations & Production Management, 25(7), 681-700. https://doi.org/10.1108/01443570510605090

MendonçaTachizawa, E., & Giménez Thomsen, C. (2007). Drivers and sources of supply flexibility: an exploratory study. International Journal of Operations & Production Management, 27(10), 1115-1136. https://doi.org/10.1108/01443570710820657

Merschmann, U., & Thonemann, U. W. (2011). Supply chain flexibility, uncertainty and firm performance: an empirical analysis of German manufacturing firms. International Journal of Production Economics, 130(1), 43-53. https://doi.org/10.1016/j.ijpe.2010.10.013

Moon, K. K. L., Yi, C. Y., & Ngai, E. W. T. (2012). An instrument for measuring supply chain flexibility for the textile and clothing companies. European Journal of Operational Research, 222(2), 191-203. https://doi.org/10.1016/j.ejor.2012.04.027

More, D. S., & Babu, A. S. (2011). Supply chain flexibility: a risk management approach. International Journal of Business Innovation and Research, 5(3), 255-279. https://doi.org/10.1504/IJBIR.2011.040098

Morlok, E. K., & Chang, D. J. (2004). Measuring capacity flexibility of a transportation system. Transportation Research Part A: Policy and Practice, 38(6), 405-420. https://doi.org/10.1016/j.tra.2004.03.001

Naim, M. M., Potter, A. T., Mason, R. J., & Bateman, N. (2006). The role of transport flexibility in logistics provision. The International Journal of Logistics Management, 17(3), 297-311. https://doi.org/10.1108/09574090610717491

Nakahara, Y., Sasaki, M., & Gen, M. (1992). On the linear programming problems with interval coefficients. Computers & Industrial Engineering, 23(1), 301-304. https://doi.org/10.1016/0360-8352(92)90121-Y

Ngai, E. W., Chau, D. C., & Chan, T. L. A. (2011). Information technology, operational, and management competencies for supply chain agility: Findings from case studies. The Journal of Strategic Information Systems, 20(3), 232-249. https://doi.org/10.1016/j.jsis.2010.11.002

Opricovic, S., & Tzeng, G. H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445-455. https://doi.org/10.1016/S0377-2217(03)00020-1

Pawlak, Z. (1982). Rough sets. International Journal of Computer & Information Sciences, 11(5), 341-356. https://doi.org/10.1007/BF01001956

Samuel, K. E., & Spalanzani, A. (2009). Developing collaborative competencies within supply chains. International Journal of Information Technology and Management, 8(2), 146-160. https://doi.org/10.1504/IJITM.2009.023297

Seebacher, G., & Winkler, H. (2014). Evaluating flexibility in discrete manufacturing based on performance and efficiency. International Journal of Production Economics, 153, 340-351. https://doi.org/10.1016/j.ijpe.2014.03.018

Seebacher, G., & Winkler, H. (2015). A capability approach to evaluate supply chain flexibility. International Journal of Production Economics, 167, 177-186. https://doi.org/10.1016/j.ijpe.2015.05.035

Sethi, A. K., & Sethi, S. P. (1990). Flexibility in manufacturing: a survey. International Journal of Flexible Manufacturing Systems, 2(4), 289-328. https://doi.org/10.1007/BF00186471

Slack, N. (1983). Flexibility as a manufacturing objective. International Journal of Operations & Production Management, 3(3), 4-13. https://doi.org/10.1108/eb054696

Stevenson, M., & Spring, M. (2007). Flexibility from a supply chain perspective: definition and review. International Journal of Operations & Production Management, 27(7), 685-713. https://doi.org/10.1108/01443570710756956

Stevenson, M., & Spring, M. (2009). Supply chain flexibility: an inter-firm empirical study. International Journal of Operations & Production Management, 29(9), 946-971. https://doi.org/10.1108/01443570910986238

Swafford, P. M., Ghosh, S., & Murthy, N. (2006). The antecedents of supply chain agility of a firm: scale development and model testing. Journal of Operations Management, 24(2), 170-188. https://doi.org/10.1016/j.jom.2005.05.002

Swafford, P. M., Ghosh, S., & Murthy, N. (2008). Achieving supply chain agility through IT integration and flexibility. International Journal of Production Economics, 116(2), 288-297. https://doi.org/10.1016/j.ijpe.2008.09.002

Tamayo-Torres, J., Gutierrez-Gutierrez, L., & Ruiz-Moreno, A. (2014). The relationship between exploration and exploitation strategies, manufacturing flexibility and organizational learning: An empirical comparison between Non-ISO and ISO certified firms. European Journal of Operational Research, 232(1), 72-86. https://doi.org/10.1016/j.ejor.2013.06.040

Tang, C., & Tomlin, B. (2008). The power of flexibility for mitigating supply chain risks. International Journal of Production Economics, 116(1), 12-27. https://doi.org/10.1016/j.ijpe.2008.07.008

Tippins, M. J., & Sohi, R. S. (2003). IT competency and firm performance: is organizational learning a missing link?. Strategic Management Journal, 24(8), 745-761. https://doi.org/10.1002/smj.337

Tiwari, A. K., Tiwari, A., & Samuel, C. (2015). Supply chain flexibility: a comprehensive review. Management Research Review, 38(7), 767-792. https://doi.org/10.1108/MRR-08-2013-0194

Vickery, S., Calantone, R., & Dröge, C. (1999). Supply chain flexibility: an empirical study. Journal of Supply Chain Management, 35(2), 16-24. https://doi.org/10.1111/j.1745-493X.1999.tb00058.x

Vokurka, R. J., & O’Leary-Kelly, S. W. (2000). A review of empirical research on manufacturing flexibility. Journal of Operations Management, 18(4), 485-501. https://doi.org/10.1016/S0272-6963(00)00031-0

White, A. E. D. M., Daniel, E. M., & Mohdzain, M. (2005). The role of emergent information technologies and systems in enabling supply chain agility. International Journal of Information Management, 25(5), 396-410. https://doi.org/10.1016/j.ijinfomgt.2005.06.009

Wilson, D. R., & Martinez, T. R. (1997). Improved heterogeneous distance functions. Journal of Artificial Intelligence Research, 6, 1-34.

Winkler, H., & Seebacher, G. (2012). Considerations on a contemporary flexibility approach. Research in Logistics & Production, 2, 147-161.

Wu, K. J., Tseng, M. L., Chiu, ASF, & Lim, M. K. (2016). Achieving competitive advantage through supply chain agility under uncertainty: A novel multi-criteria decision-making structure. International Journal of Production Economics, 190, 96-107. https://doi.org/10.1016/j.ijpe.2016.08.027

Yusuf, Y. Y., Gunasekaran, A., Musa, A., Dauda, M., El-Berishy, N. M., & Cang, S. (2014). A relational study of supply chain agility, competitiveness and business performance in the oil and gas industry. International Journal of Production Economics, 147(Part B): 531-543. https://doi.org/10.1016/j.ijpe.2012.10.009