Analysis of Product Sustainability by Using a Risk‐Oriented System Dynamics Model

Abstract Measuring product sustainability plays a significant role to gain competitive advantage. Nevertheless, while achieving sustainable products, all related risks associated with sustainability should be considered. Previous studies are limited by the lack of the dynamic and multidimensional approaches. However, as the decision‐making environment is constantly changing in the real world, a dynamic decision‐making approach is required. The aim of this study is to develop a dynamic and risk‐driven approach to investigate the product sustainability risks. The proposed approach considers all the related risks and interactions with a holistic view covering environmental, economic, and social sustainability. To deal with the dynamic and multidimensional nature of product sustainability, system dynamics is proposed. The results show that increasing the production capacity of the company and maintaining the production emphasizing innovation have led to improvements on both product sustainability and the main dimensions of sustainability. The realization of Industry I4.0 applications can be an effective strategy for the business to increase product sustainability. This study is supported with a case study implemented in the manufacturing industry to confirm the applicability of the model. This paper is useful for industry and policy makers to observe the potentials impacts of products sustainability risks.