Improving the performance of supply chain with the help of circular economy.

1. Circular Economy towards Supply Chain Performance
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2. Content of Presentation
 Introduction
 Literature review
 Problem formulation
 Learning Tools
 References
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3. Introduction
 Excessive waste generation is a problematic concern that the industrial managers
and policy makers are facing. The present time demand development of innovative
ways for reduction and utilization of that waste for the useful purposes.
 By using the various available process to converted waste into the useful form,
which again used into the various places, and also help to growth the economy.
 If waste will not convert into the other forms, then it will be harmful for the
environment and human health.
 To resolve the such of problem faced by the industrial manager and policy maker,
to introduce the Circular Economy (CE) concept which help to minimize the waste
generation.
 CE concept has been projected as a dominant route to enhancing the mode which
use efficiently to balance between negative environment impact, social impact and
the economy (Ghisellini, et al., 2016).
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4. Contd…...
 There is no single definition of circular economy (Kirchherr, et al., 2017). “Circular
economy is a closed flow loop of resource and the use of resources and energy in
many phases” (Yuan, et al., 2008).
 The CE concept joints the economy and environment, objective is to growth
sustainability, effectively convert unsustainable material into the sustainable material
(Roy, et al., 2019).
 The concept of CE is not only crucial for manufacturing industry but also in the
academic research area.
 The circular CE has been introduced and authorized based on the 3R such as (reduce,
reuse and recycle) in supply chain management (Papadopoulos and Giama, 2007).
 Reduce related to input method whose aim to decreasing the input raw material and
energy in the manufacturing and utilization process.
 Reuse is the process with the purpose is to extend the durability of the product and
the service.
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5. Contd……
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manufactu
rer
produces
the
product
customer
buy uses
and throw
person
pickup
these
waste
sold to
industry
Industry
performed
many
operation on
these waste
convert to
useful
product
Figure 1 working steps of circular
economy

6. Contd…….
 Recycle is the method of extraction, requiring building material to the return to
renewable resource after the use (Zhao, et al., 2012).
 However, as the topic has grown-up and it has developed to 6R which has also
included Recover, Redesign, and Remanufacturing, showing good
consequences for promoting reuse (Govindan and Hasanagic, 2018).
Supply Chain
 A supply chain is a network between a company and its suppliers to produce
and distribute a specific product to the final buyer.
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7. 7
Figure 2 Working of Supply Chain
Contd……

8. 8
Author Work done
(Tyagi, et al.
(2014))
Identified the enabler by using the fuzzy DEMATEL
approach which contribute to enhance the flexible supply
chain measurement system so that the organization
improve their profit.
(Ocampo, et al.
(2017))
Identify causal relationship of organization citizenship
behavior in the hospital industry by using fuzzy
DEMATEL method so that they can improve their service
performance.
(Lin, (2013)) Presented the fuzzy DEMATEL method to evaluate the
green supply chain management.
(Mavi, et al.
(2013))
Presented the fuzzy DEMATEL approach to examine the
influential logistical criteria of green supply chain to
minimize the more influential logistic criteria so that to
enhance the environment sustainability.
Literature Review

9. (Chen-Yi, et al.
(2007))
Presented the fuzzy DEMATEL method to identify the key
factors and attributes in building the structure relations of
an idea Customers Choice Behavior so that to improve the
firm’s performance and satisfy the customers.
(Lin, et al. (2011)) DEMATEL method to find the core capacity and cause effect
of integrated circuit (IC) design service company so that
improve the overall performance.
(Tsai and Chou,
(2009))
Assessed the field of sustainable development in small and
medium enterprises (SMEs) through identifying the factor
which contribute to enhance the sustainability by using the
DEMATEL method.
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Contd…..

10. Problem Formulation
 For improving the performance of supply chain, fuzzy DEMATEL approach has
been used. Fuzzy DEMATEL approach has been used to find out the cause and
effect and the important ranking of the enablers based on the value of
Prominence (D1+R1) and Relation (D1-R1) . To perform the fuzzy DEMATEL
approach on the enablers namely Operation performance improvement (E1),
energy saving (E2), Sustainable business growth (E3), green procurement (E4),
waste recycling (E5), society well-being (E6), organization environment (E7) and
cost reduction (E8).
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11. Learning Tools
 The objective of this research is to find out the crucial level of considered enablers of
CE for improving the Supply Chain Performance (SCP). Fuzzy DEMATEL approach
has been conducted to identify the significant enablers effect the SCP.
 The set of enablers has been analyzed by using the fuzzy DEMATEL approach. To
analyze the fuzzy DEMATEL approach, a questionnaire has been designed on
linguistic terms (no influence, very low influence, low influence, high influence and
very high influence). And to achieve the present specified objective in this research
work to performed the fuzzy DEMATEL approach step by steps.
DEMATEL method
 Science and Human Affairs Program of the Battle Memorial Institute of Geneva had
been developed DEMATEL method between 1972 and 1976 (A. Ocampo, et al.,
(2018)).
 DEMATEL has been used as to convert the mutual relationship between the criteria’s
cause and effects into a visual structural model (Tzeng, et al., (2007)).
 DEMATEL method has been used in various application, such as selection of truck
(Baykasoglu, et al., (2013)), sustainable management (Tsai and Chou, 2009) etc.
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12.  DEMATEL method having the limitation, where it failed to capture the uncertainty
present in the direct-relation matrix obtain from the judgement of decision-maker,
so that to overcome this limitation fuzzy set theory has been used (A. Ocampo, et
al., (2018)).
Fuzzy DEMATEL approach
 The fuzzy DEMATEL approach examine the mutual interaction
between a set of complex criteria factor on the basis of graph (Tyagi, et
al. (2014)) and on the basis of cause-and-effect behavior make the
referential relationship between existing criteria (Charan, et al. 2008;
Li and Tzeng 2009).
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13. References
 Ghisellini, P., Cialani, C., Ulgiati, S. (2016). “A review on circular economy: the expected transition to a balanced interplay of
environment and economy system”. Journal of cleaner production, volume 114 no., pp. 11-32.
 Kirchherr, J., Reike, D., Hekkert, M. (2017). “Conceptualizing the circular economy: an analysis of 114 definition”. Resources,
Conservation and Recycling, volume 127 no., pp. 221-231.
 Yuan, Z., Bi, J., Moriguichi, Y. (2008). “The circular economy: a development Strategy in China”. Journal of Industrial Ecology,
volume 10 no., pp. 4-8.
 Geissdoerfer, M., Savaget, P., M.P Bocken, N., Jan Hultink, E. (2017). “The circular economy- A new sustainability
paradigm?”. Journal of cleaner production, volume 143 no., pp. 757-768.
 Roy, F.O., Benson, D., Monciardini, D. (2019). “Going around in circles? Conceptual recycling patching and policy layering in
the EU circular economy package”. Environmental politics, volume 29 no., pp. 983-1003.
 Stahel, W.R., Reday, G. (1976). “The Potential for the substituting manpower for energy report to the commission of the
European Communities, Brussels”. Geneva, Switzerland: Battelle, Geneva Research Centre, volume 76 no., pp. 109-113.
 Kumar, P., Kr Singh, R., Kumar, V. (2021). “Managing supply chain for sustainability operations in the era of industry 4.0 and
circular economy: Analysis of barriers”. Resources, Conservation and Recycling, volume 164 no., 105215.
 Papadopoulos, A., Giama, E. (2007). “Environmental performance evaluation of thermal insulation material and its impact on
the building”. Building and Environment, volume 42 no., pp. 2178- 2187.
 Zhao, Y., Zang, L., Li, Z., Qin, J. (2012). “Discussion on the model of mining circular economy”. Energy Procedia, volume 16
no., pp. 438-443.
 Govindan, K., Hasanagic, M. (2018). “A systematic review on driver, barrier, and practices towards circular economy: a supply
perspective”. International Journal of Production Research, volume 56(1-2) no., pp. 278-311.
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14.  A. Ocampo, L., G. Tan, T.A., A. Sia, L. (2018). “Using fuzzy DEMATEL in modeling the casual relationship of the
antecedents of organizational citizenship behavior (OCB) in the hospitality industry: A case study in the Philippines”.
Journal of Hospitality and Tourism Management, volume 34 no, pp. 11-29.
 Tzeng, G.H., Chiang, C.H., Li, C.W. (2007). “Evaluating intertwined effects in e-learning program: a novel hybrid MCDM
model based on factor analysis and DEMATEL”. Expert System with Application, volume 32(4) no, pp. 1028-1044.
 Tyagi, M., Kumar, P., Kumar, D. (2014). “Assessment of Critical Enablers for Flexible Supply Chain Performance
Measurement System Using Fuzzy DEMATEL Approach”. Global Journal of Flexible Systems Management, volume 16(2)
no, pp. 115-132.
 Charan, P., Shankar, R., Baisya, R.K. (2008). “Analysis of interaction among the variable of supply chain performance
measurement system implementation”. Business Process Management Journal, volume 14(4) no, pp. 512-529.
 Li, C.W., Tzeng, G.H. (2009). “Identification of threshold value for the DEMATEL method using the maximum mean de-
entropy algorithm to find critical services provided by a semiconductor intellectual property mall”. Expert System with
Application, volume 8(1) no, pp. 9891-9898.
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15. Thank You
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