Integrating Sustainability in the Design and Planning of Supply Chains

This research integrates factors and practices relevant to environmental and economic sustainability and, thereby, encapsulates social responsibility in supply chain (SC) design and planning to enhance its overall performance. Such factors and practices are included in the design and planning model as proactive inputs to face the potential cost impacts as well as to achieve desirable benefits. A feature of the model is to incorporate performance of the SC relative to benchmark /target values and consider options to reduce gaps for improving overall sustainability performance of the business. The model considers measurable key characteristics of the factors in a closed loop SC to have a tangible effect on the bottom line and improve the company’s image to customers with a keen view of sustainability in mind. The research outcomes show effectiveness of the proposed target based planning to pinpoint crucial sustainability indices and select appropriate options to improve the indices and overall performances within desirable bounds on cost. A numerical example is illustrated to aid managers to design and plan such SCs for their businesses.