MODELING THE DIFFUSION OF GREEN SUPPLY CHAIN MANAGEMENT IN PRODUCTION INDUSTRIES USING SYSTEM DYNAMICS

The implementation of the Green Supply Chain (GSC) has become one of the fundamental strategies of governments today, and is recognized as a competitive advantage for companies. Nevertheless, the diffusion and expansion of Green Supply Chain Management (GSCM) in manufacturing industries is a complex subject and faces many barriers and difficulties. The existence of different stakeholders with different and sometimes contradictory goals, along with a wide range of influential factors that have mutually interactive and indirect effects, are two main features of this issue. Using system dynamics tools, this research models the interactions between the key stakeholders including government, manufacturers, and consumers quantitatively and dynamically, and describes the pattern of GSCM diffusion in manufacturing companies. The proposed model analyzes feedback and causal relationships among key stakeholders, evaluates the path of GSCM diffusion over time. It also evaluates the sensitivity of the results to the model parameters. Moreover, as a case study, the model is simulated in Iran's automotive industry and the results of various scenarios have been analyzed. The most important results are:Diffusion of GSCM in automotive companies has a decreasing oscillation pattern, and over time, the revenue of the two green producer groups and normal producers comes close together and reaches to a certain proportional level. The amount of government subsidies to producers and consumers of green products has an effect on GSCM diffusion. The results show that in the case of same changes in these two parameters, the impact of the consumer subsidy (SC) is far greater than the effect of the producer subsidy (SM), and if the government's target is more green production, the consumption subsidy has a better effect. GSCM releases will be significantly enhanced, if green manufacturers can reduce the cost of their products in a variety of ways. Sensitivity of consumers to green product preferences is also effective in GSCM diffusion, but its effect is less than other factors.