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Logistics Decision Model for Environmental Aspect using the Analytic Network Process

Green supply chain management has appeared as an essential strategy for enhancing environmental performance of processes, structures, and products accordingly to address regulatory and competitive forces. Korean firms lag in green logistics activities relative to ‘green’ leading companies in advanced countries. Thus, few papers have identified and investigated green supply chain systems within South Korea. To further understand how some Korean firms may wish to further develop green logistics and supply chain practices, this paper explores a decision making framework of Green Logistics by using ANP (analytic network process). We derived 5 clusters and 21 components forming the strategic green logistics, and then conducted surveys for pairwise comparison of experts on Green Logistics in Korean firms, and computed relative weights of the clusters. Our findings indicate that Green Logistics would be very helpful for managers to adjust their strategic decisions for green supply chain management. The technique proposed in this paper may be generalized to other countries with the framework developed not unique to just Korean industry.