Dynamic Analysis of Lean and Green Supply Chain Policies in Sustainability of CHOUKA Iran Wood & Paper Industries Inc.

Document Type : Research Paper

Authors

1 Department of Industrial Administration, Central Tehran Branch, Islamic Azad University, Tehran, Iran.

2 Department of Industrial Administration, Semnan Branch, Islamic Azad University, Semnan, Iran.

Abstract

Sustainability of supply chain in economic systems and green supply chain management has widely attracted researchers’ attention by raising awareness of environmental effects. On the other hand, the lean supply chain is another concept whose implementation in organizations is expected to result in improved sustainability in industries. The present study aims to analyze the policy-based roles of the lean supply chain and green supply chain concepts in the corporation sustainability by designing a system dynamics model of the supply chain in CHOUKA Iran Wood & Paper Industries Inc. To this end, after a review of the literature with collaborations from decision-makers and CHOUKA data, the system dynamics model was designed in Vensim, and the model was simulated in a 10-year horizon after verification. Considering the behavior of the variables and the Monte Carlo sensitivity analysis, the model was simulated in the horizon, the green supply chain policies, the lean supply chain management and CHOUKA's business profitability were designed and applied on the model both in separate and integrative manners, the results were compared, and the behaviors of the policies were analyzed. As for the findings of the model simulation, the selected combination of the policies of lean supply chain management and green supply chain management, as well as CHOUKA’s business profitability, was proposed as the best integrative sustainability policy for CHOUKA Iran Wood & Paper Industries supply chain management. The results generally indicated that simultaneous implementation of lean and green supply chain policies leads to synergy in supply chain sustainability

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