A System Dynamics Model for Balanced Performance Evaluation of A LARG Supply Chain

Abstract

The purpose of this research is to evaluate the level to which a company’s activities in a supply chain are LARG. In this study, an integrated method is used to evaluate the LARG supply chain performance of a company resulting from the integration of LARG concepts and Balanced Scorecard approach. The BSC measures are selected based on the LARG concepts, and then the indicators entered into the dynamic model. Variables are changed in different scenarios to analyze changes in the company’s performance. Scenarios are designed to evaluate the supply chain performance using the strategic objectives. The results show that simultaneous implementation of LARG elements is not possible due to the trade off relationship. By analyzing the scenarios, it was found that by changing each parameter in the dynamic model, some LARG elements increase and at the same time, some other elements decrease. For example, by increasing the productivity of education, the level of leanness and resilience increases, but it has no effect on the environment. Using the designed dynamic model, the effect of each managerial action and decision on LARG can be determined and the extent to which strategic goals can be achieved.

Keywords

• system dynamics
• larg supply chain management
• performance evaluation
• scenario planning
• balanced scorecard