A multiple attribute utility theory approach to lean and green supply chain management

There are a lot of metrics for evaluating the performance of supply chains. However, they may be aggregated as leadtime, customer service, cost, and quality. In this connection the Environmental Protection Agency in the United States issued in 2000 a practical guide called ‘The Lean and Green Supply Chain’. The purpose of the guidebook is to demonstrate the opportunities for improving both financial and environmental performance and to briefly review specific tools and methods. In this paper, we first extend the range of the supply chain to include re-use and recycling throughout the life cycle of products and services. Using our definition, we propose the multiple attribute utility theory method for assessing a supply chain. We consider this approach to be one of the ‘lean and green supply chain’ methods. We can then evaluate the performance of a supply chain not only from a managerial viewpoint but also from an environmental performance viewpoint. Secondly, we apply this technique to an application study and confirm the efficiency of the proposal.