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A New Model for Lean and Green Closed-Loop Supply Chain Optimization

In: Lean and Green Supply Chain Management

Author

Listed:
  • Turan Paksoy

    (Konya Technical University)

  • Ahmet Çalik

    (KTO Karatay University)

  • Alexander Kumpf

    (Applied Sciences University of Landshut)

  • Gerhard Wilhelm Weber

    (Chair of Marketing and Economic Engineering, Poznan University of Technology
    METU)

Abstract

The dynamics of Supply Chain Management (SCM) have changed over the years; new paradigms are added into the SCM as a response to changes related with increasing environmental concerns and pressures. Therefore, lean and green practices in a company belong to its most important factors to enhance the company’s performance. In this study a new model, inspired by an automotive supply chain, is proposed for lean and green closed-loop supply chain management. In this model, we deal with lean and green drivers to set the objectives of the decision makers (DMs) as follows; (1) Construction: The amount of emitted CO 2 depends on the size of the potential facilities; (2) Production: Higher equipment or techniques in a production system means a higher environmental investment and leads to lower CO 2 emissions; (3) Handling: The usage of a proper forklift is an important decision to increase the productivity and reduce CO 2 emissions; (4) Transportation: Three different options in the transportation process which DMs can choose are considered: small-sized, medium-sized, and heavy-sized trucks. All of the truck types differ in transportation cost and CO 2 emissions with respect to the engines. The benefits of the heavy-sized trucks are obvious: less transportation cost with bigger lot size deliveries but more environmental pollution as well; (v) On Time Deliveries: Lean manufacturing needs suppliers to comply with delivery times, which directly affect the buyer’s manufacturing lead times, operational performances and competitiveness. Thus, late deliveries of suppliers aimed to be minimized. Under these circumstances, there are few trade-offs which need to be optimized simultaneously. The developed model consists of six different objectives: minimization of transportation cost, purchasing and operational cost, fixed facility cost, environmental cost, handling cost and late deliveries. In order to validate the proposed model, a numerical example is implemented and analyzed by using fuzzy weighted additive method where the weights are determined via Fuzzy Analytic Hierarchy Process (Fuzzy AHP) method.

Suggested Citation

  • Turan Paksoy & Ahmet Çalik & Alexander Kumpf & Gerhard Wilhelm Weber, 2019. "A New Model for Lean and Green Closed-Loop Supply Chain Optimization," International Series in Operations Research & Management Science, in: Turan Paksoy & Gerhard-Wilhelm Weber & Sandra Huber (ed.), Lean and Green Supply Chain Management, pages 39-73, Springer.
  • Handle: RePEc:spr:isochp:978-3-319-97511-5_2
    DOI: 10.1007/978-3-319-97511-5_2
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    Citations

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    Cited by:

    1. Nicolas Haber & Mario Fargnoli, 2022. "Product-Service Systems for Circular Supply Chain Management: A Functional Approach," Sustainability, MDPI, vol. 14(22), pages 1-19, November.
    2. Zahra Homayouni & Mir Saman Pishvaee & Hamed Jahani & Dmitry Ivanov, 2023. "A robust-heuristic optimization approach to a green supply chain design with consideration of assorted vehicle types and carbon policies under uncertainty," Annals of Operations Research, Springer, vol. 324(1), pages 395-435, May.
    3. Satyendra Kumar Sharma & Praveen Ranjan Srivastava & Ajay Kumar & Anil Jindal & Shivam Gupta, 2023. "Supply chain vulnerability assessment for manufacturing industry," Annals of Operations Research, Springer, vol. 326(2), pages 653-683, July.
    4. Maher Agi & Xinghao Yan, 2020. "Greening products in a supply chain under market segmentation and different channel power structures," Post-Print hal-02898158, HAL.
    5. Madhukar Chhimwal & Saurabh Agrawal & Girish Kumar, 2021. "Measuring Circular Supply Chain Risk: A Bayesian Network Methodology," Sustainability, MDPI, vol. 13(15), pages 1-22, July.
    6. Schreiber, Lucas & Jarmer, Jan-Philipp & Kamphues, Josef, 2020. "Energy-efficient supply chain design: Data aggregation and processing," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Jahn, Carlos & Kersten, Wolfgang & Ringle, Christian M. (ed.), Data Science in Maritime and City Logistics: Data-driven Solutions for Logistics and Sustainability. Proceedings of the Hamburg International Conferen, volume 30, pages 129-155, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    7. Frank Bertagnolli & Kerstin Herrmann & Isabel Rittmann & Tobias Viere, 2021. "The Application of Lean Methods in Corporate Sustainability—A Systematic Literature Review," Sustainability, MDPI, vol. 13(22), pages 1-17, November.

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