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A supply chain design approach considering environmentally sensitive customers: the case of a German manufacturing SME

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  • Michael Altmann

Abstract

Sustainable business development is one of the main topics of research and management in recent years. Since the environmental pillar is a part of the sustainability concept, companies are forced to (re-)design their supply chain according to environmental issues. Both government and other stakeholders, e.g. non-governmental organisations and customers, pay a lot of attention on a company’s environmental performance. Hence there is a risk of losing reputation if a company does not comply with environmental norms. We focus on the impact of customers’ requirements regarding the environmental performance of a product on strategic supply chain design decisions of the manufacturer of the product. Thus, we consider the case of a German manufacturing company and present a mixed-integer linear programming supply chain design model with a demand function that is influenced by sustainability requirements. The company is assumed to be able to improve the environmental performance of the products sold and affect the customer demand positively by designing an environmentally conscious supply chain.

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  • Michael Altmann, 2015. "A supply chain design approach considering environmentally sensitive customers: the case of a German manufacturing SME," International Journal of Production Research, Taylor & Francis Journals, vol. 53(21), pages 6534-6550, November.
    • Handle: RePEc:taf:tprsxx:v:53:y:2015:i:21:p:6534-6550
    DOI: 10.1080/00207543.2014.961203
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    Cited by:

    1. Zhang, Zhengyong & Dai, Xuan & Ding, Yi, 2023. "Government environmental governance and firms’ green innovation: Evidence from listed firms in heavy pollution industries of China," Finance Research Letters, Elsevier, vol. 55(PA).
    2. Antonio García-Amate & Alicia Ramírez-Orellana & Alfonso A. Rojo-Ramírez & M. Pilar Casado-Belmonte, 2023. "Do ESG controversies moderate the relationship between CSR and corporate financial performance in oil and gas firms?," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-14, December.
    3. Waltho, Cynthia & Elhedhli, Samir & Gzara, Fatma, 2019. "Green supply chain network design: A review focused on policy adoption and emission quantification," International Journal of Production Economics, Elsevier, vol. 208(C), pages 305-318.
    4. Guo, Yuhan & Yu, Junyu & Allaoui, Hamid & Choudhary, Alok, 2022. "Lateral collaboration with cost-sharing in sustainable supply chain optimisation: A combinatorial framework," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    5. Barbosa-Póvoa, Ana Paula & da Silva, Cátia & Carvalho, Ana, 2018. "Opportunities and challenges in sustainable supply chain: An operations research perspective," European Journal of Operational Research, Elsevier, vol. 268(2), pages 399-431.
    6. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.
    7. Jyoti Dhingra Darbari & Devika Kannan & Vernika Agarwal & P. C. Jha, 2019. "Fuzzy criteria programming approach for optimising the TBL performance of closed loop supply chain network design problem," Annals of Operations Research, Springer, vol. 273(1), pages 693-738, February.
    8. Nouira, Imen & Hammami, Ramzi & Frein, Yannick & Temponi, Cecilia, 2016. "Design of forward supply chains: Impact of a carbon emissions-sensitive demand," International Journal of Production Economics, Elsevier, vol. 173(C), pages 80-98.
    9. Jian Li & Kin Keung Lai, 2023. "The abatement contract for low-carbon demand in supply chain with single and multiple abatement mechanism under asymmetric information," Annals of Operations Research, Springer, vol. 324(1), pages 437-459, May.
    10. Priyabrata Chowdhury & Rezaul Shumon, 2020. "Minimizing the Gap between Expectation and Ability: Strategies for SMEs to Implement Social Sustainability Practices," Sustainability, MDPI, vol. 12(16), pages 1-15, August.
    11. Kamal, Muhammad Mustafa & Mamat, Rosnida & Mangla, Sachin Kumar & Kumar, Patanjal & Despoudi, Stella & Dora, Manoj & Tjahjono, Benny, 2022. "Immediate return in circular economy: Business to consumer product return information sharing framework to support sustainable manufacturing in small and medium enterprises," Journal of Business Research, Elsevier, vol. 151(C), pages 379-396.

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