Comparative analysis of environment losses in steel manufacturing supply chain using Taguchi loss function and design of experiments

Abstract

PurposeThe objective of this paper is to compare and evaluate the environmental performance of steel supply chains considering relevant environmental loss factors using Taguchi loss function (TLF) and design of experiments (DOE).Design/methodology/approachThe different environmental loss factors in steel manufacturing supply chain were studied and the significant factors were identified. Their combined contributions along the significant factors were estimated using TLF and DOEs comparing environment losses at different scenarios.FindingsThe proposed methodology using TLF and DOEs was applied to three Indian steel manufacturing companies (Company A, Company B and Company C). The Company A with minimal average environmental loss score is found to be operating its supply chain with higher efficiency and has better environmental performance compared to the other two companies (B and C).Research limitations/implicationsThe results obtained are based on the study carried out in three Indian steel manufacturing companies. Therefore, the results cannot be generalized.Practical implicationsThis paper will definitely show the direction for comparative environmental performance assessment of manufacturing industries in general and steel industries in specific considering environmental loss factors and environmental conditions. It determines individual performance across each environmental loss factor and their combined impact.Originality/valueAlthough there is a need to have comparative performance analysis with respect to environmental losses among steel companies in developing countries such as India, but hardly any study has been reported in this direction. This work will definitely add the value to the supply chain literature in general and environment losses in steel manufacturing supply chain in specific.