Input–output models for the analysis of a local/global supply chain

A supply chain can be analysed as a network of production processes which can be localised within and outside a given geographic area. Each process can be defined as a system that produces output flows in consequence of input flows. In this paper, an input–output approach based on production processes is used to develop specific models that investigate flows among production processes either of a whole (global) supply chain or of a part of the supply chain localised within a given area (local). By-product and waste outputs are also considered. The developed models can help improve design and management of supply chains also in terms of sustainable development of a local area. In fact, this use of the input–output analysis entails a deeper understanding of the relationships among the processes and the environment.