Supply chain surplus: comparing conventional and sustainable supply chains

In this paper, we first define sustainable supply chain, and its value, as a paradigm which pursues the maximization of supply chain profitability while taking its environmental and societal responsibilities. Secondly, we compare the supply chain surplus between the conventional and sustainable supply chains by means of adopting the basic economic analysis based on the concept of externality and social surplus in welfare economics. Through the proposed analysis, we show the possibility of sustainable supply chains which can provide more supply chain surplus to the companies. Finally, some limitations of this paper and future research directions are also presented.