A Novel Axial-Distance-Based Aggregated Measurement (ADAM) Method for the Evaluation of Agri-Food Circular-Economy-Based Business Models

Abstract

Multicriteria decision making (MCDM) is a field that helps decision makers evaluate alternatives based on multiple criteria and encompasses scoring, distance-based, pairwise comparison, and outranking methods. Recent developments have aimed to solve specific problems and overcoming the limitations of previous methods. This paper proposes a new axial-distance-based aggregated measurement (ADAM) method, which is used in combination with the best-worst method (BWM) to evaluate agri-food circular economy (CE)-based business models (BMs) to create a more sustainable and efficient system for producing and consuming food. This paper proposes nine BMs, which were evaluated against eight criteria. The BWM method was used to obtain the criteria weights, while the ADAM method was used to obtain a final ranking of the BMs. The results indicate that a sustainable circular agri-food supply chain is a BM that can bring companies the most significant progress in business and strengthen their position in the market. We concluded that the ADAM method is effective for solving MCDM problems and that, overall, the model is an effective tool for solving the problem defined in this study. The main contributions are the development of a new MCDM method and a hybrid model, the establishment of the framework for evaluation and selection of CE-based BMs, and the identification of the most important ones.

A multi-level tool to support the circular economy decision-making process in agri-food entrepreneurship

“…In this first phase a theoretical framework was developed, thus providing the basis for the selection of criteria and sub-criteria of the general model. Based on some of the available CE assessment frameworks in the literature (Ahmed et al, 2022;Vinante et al, 2021;Lacy et al, 2020;Krsti c et al, 2023) a methodological framework was developed capable of capture all aspects of circularity, following a systemic and holistic vision. It indicates the strategic areas that need to be considered to assess the level of CE of companies, in order to ensure a reliable assessment:…”

“…4.5 Normalization, aggregation and final rank using the ADAM method ADAM method represents a new class of MCDM techniques, known as geometric MCDM (Krsti c et al, 2023). This approach rates alternatives by computing the volumes of complex polyhedra made up of points (vertices) in a three-dimensional coordinate system as an aggregate measurement.…”

“…These methods help structure decisions, evaluate available options and select the best solution based on multiple factors involved (Munier et al, 2019). In the specific case, since the CE involves a wide range of interconnected aspects, making effective decisions can become complex due to the numerous variables and objectives to be considered simultaneously (Krsti c et al, 2023). The proposed framework allows to manage this complexity, facilitating the decision-making process and providing a structured basis for comparing and evaluating the different options.…”

“…, 2021; Lacy et al. , 2020; Krstić et al. , 2023) a methodological framework was developed capable of capture all aspects of circularity, following a systemic and holistic vision.…”

“…ADAM method represents a new class of MCDM techniques, known as geometric MCDM (Krstić et al. , 2023).…”