Circularity assessment of logistics activities for green business performance management

The population of the world is increasing, and product demand is increasing, making a linear economy ineffective, and therefore, this situation makes the circular economy (CE) a requirement. Economic, social, and environmental factors all play a role in the CE. Also, logistics activities are critical parts of the CE. Hence, this study's goal is to create a framework for evaluating organizations' CE logistics performance. The main contribution of the study is the creation of a framework to assess the circularity performance, including various logistics activities, and measure the performance of logistics activities. To establish a list of criteria, 30 experts were interviewed. The criteria were ranked using fuzzy statements. The selected multi-criteria decision-making (MCDM) method, data envelopment analysis, is applied using IBM ILOG CPLEX Optimization Studio version 20.1.0.

Automated summary

The increasing global population and product demand render the linear economy ineffective, necessitating the implementation of the circular economy. Economic, social, and environmental factors all contribute to the circular economy, with logistics activities being crucial. This study aims to develop a framework for evaluating organizations' circular economy logistics performance, and its main contribution lies in creating a framework to assess circularity performance and measure the performance of logistics activities. Through expert interviews and fuzzy statements, a list of criteria was established, and the data envelopment analysis (DEA) method was employed for evaluation.