Interrelationship of Green Supply Chain Management (GSCM) Performance Indicators for Palm Oil Industry in Indonesia

Abstract

This study identifies GSCM Performance indicators for the palm oil industry in Indonesia, analyse the relationships between these indicators, and classify those indicators. Literature studies and expert surveys are carried out and produce eleven indicators. Interpretative Structural Modelling is used as a method for modelling the relationships between these indicators and results in six indicators at the first level, namely water usage (G1), material usage (G9), global warming potential (G4),% CPO certified (G8), energy usage (G2),% product with take-back policies (G11); four indicators are at the second level: waste generated before recycled (G3), acidification potential (G10), COD (Chemical oxygen demand) (G6),% waste reused (G7); third level one indicator, namely (biological chemical demand) (G5). Meanwhile MICMAC Analysis was used to classify eleven performance indicators and produced nine indicators into cluster I, autonomous indicators, namely: energy usage (G2), waste generated before recycled (G3), BOD (biological chemical demand) (G5), COD (Chemical oxygen demand) (G6),% waste reused (G7),% CPO certified (G8), material usage (G9), acidification potential (G10),% product with take-back policies (G11). One indicator is cluster II, autonomous indicators, namely global warming potential (G4). For cluster III, linkage indicators, there are no indicators included in it at all. The last one indicator entered cluster IV, independent indicators, namely water usage (G1). In the end, this study give contribution to expand the using of ISM modelling especially for palm oil industry.