The process of choosing appropriate supply chain performance measures is difficult due to the complexity of these systems. The paper presents an overview and evaluation of the performance measures used in supply chain models and also presents a framework for the selection of performance measurement systems for manufacturing supply chains. Three types of performance measures are identified as necessary components in any supply chain performance measurement system, and new flexibility measures for supply chains are developed.The author would like to thank the editorial team and anonymous referees for their helpful comments and suggested improvements.
The supply chain has been traditionally defined as a one-way, integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers. Under this definition, the supply chain includes only those activities associated with manufacturing, from raw material acquisition to final product delivery. However, due to recent changing environmental requirements affecting manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain. This research: (1) investigates the environmental factors leading to the development of an extended environmental supply chain, (2) describes the elemental differences between the extended supply chain and the traditional supply chain, (3) describes the additional challenges presented by the extension, (4) presents performance measures appropriate for the extended supply chain, and (5) develops a general procedure towards achieving and maintaining the green supply chain.
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