Greening Supply Chains: Impact on Cost and Design
AbstractThe consideration of environmental issues has emerged as a topic of critical importance for todayâ€™s globalized supply chains. The purpose of this paper is to develop a strategic-tactical decision-support methodology to assist managers in evaluating the impact of environmental issues, related to transportation emissions, on the transport geography of a region. Specifically we provide a tool that addresses: (i) supply chain network design, including port of entry and transportation mode, and (ii) decisions on leasing vs. outsourcing of transportation and distribution centers. The applicability of the proposed methodology is examined through the development of a sustainable supply chain network in the South-Eastern Europe region. The results indicate that in most cases outsourcing distribution centers to Third Party Logistics operators improves both the cost and the environmental performance of a company. In all cases outsourcing of transportation operations minimizes the amount of CO2 and PM emissions generated, while leasing minimizes costs.
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Bibliographic InfoPaper provided by Erasmus University Rotterdam, Econometric Institute in its series Econometric Institute Report with number EI 2010-39a.
Date of creation: 16 Aug 2010
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Web page: http://www.few.eur.nl/few
carbon footprint; supply chain design; supply chain sustainability;
Other versions of this item:
- NEP-ALL-2010-08-28 (All new papers)
- NEP-ENE-2010-08-28 (Energy Economics)
- NEP-ENV-2010-08-28 (Environmental Economics)
- NEP-NET-2010-08-28 (Network Economics)
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- Plas, C. van der & Tervonen, T. & Dekker, R., 2012. "Evaluation of scalarization methods and NSGA-II/SPEA2 genetic algorithms for multi-objective optimization of green supply chain design," Econometric Institute Report EI2012-24, Erasmus University Rotterdam, Econometric Institute.
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