The Value of RFID Technology Enabled Information to Manage Perishables

We address the value of RFID technology enabled information to manage perishables in the context of a supplier that sells a random lifetime product subject to stochastic demand and lost sales. The product's lifetime is largely determined by the time and temperature history in the supply chain. We compare two information cases to a Base case in which the product's time and temperature history is unknown and therefore its shelf life is uncertain. In the first information case, the time and temperature history is known and therefore the remaining shelf life is also known at the time of receipt. The second information case builds on the first case such that the supplier now has visibility up the supply chain to know the remaining shelf life of inventory available for replenishment. We formulate these three different cases as Markov decision processes, introduce well performing heuristics of more practical relevance, and evaluate the value of information through an extensive simulation using representative, real world supply chain parameters.simulation;value of information;RFID;perishable inventory

Integration of operational research and environmental management

The subject of this thesis is the integration of Operational Research and Environmental Management. Both sciences play an important role in the research of environmental issues. Part I describes a framework for the interactions between Operational Research and Environmental Management. The framework describes three levels of incorporating environmental issues in economic decision making: waste management, recovery management and preventive management, as well as three types of policy approaches towards environmental problems: local orientation, regional orientation and global orientation. This classification helps to find possibilities of including environmental issues in existing Operational Research models and methods and to find possibilities to use Operational Research models and methods in solving environmental problems. Part II contains three examples of dealing with environmental issues in Operational Research models: waste disposal in a location model, manure utilization in a farm management model and an environmental extension of a blending model. Part III contains two examples of using Operational Research models and methods in environmental management: a linear programming model for the mineral excess problem in the Netherlands and a network flow model for paper recycling in Europe. The final chapter confronts the general ideas from the framework with the knowledge obtained from Part II and III

Design of Closed Loop Supply Chains

Increased concern for the environment has lead to new techniques to design products and supply chains that are both economically and ecologically feasible. This paper deals with the product - and corresponding supply chain design for a refrigerator. Literature study shows that there are many models to support product design and logistics separately, but not in an integrated way. In our research we develop quantitative modelling to support an optimal design structure of a product, i.e. modularity, repairability, recyclability, as well as the optimal locations and goods flows allocation in the logistics system. Environmental impacts are measured by energy and waste. Economic costs are modelled as linear functions of volumes with a fixed set-up component for facilities. We apply this model using real life R&D data of a Japanese consumer electronics company. The model is run for different scenarios using different parameter settings such as centralised versus decentralised logistics, alternative product designs, varying return quality and quantity, and potential environmental legislation based on producer responsibility.supply chain management;reverse logistics;facility location;network design;product design

Dataset of the Refrigerator Case: design of closed loop supply chains

This paper contains the dataset for the refrigerator case concerning the design of a production and return network for refrigerators. Section 1 emphasises the major changes to the problem structure and assumptions used by Umeda et al. (1999). Section 2 contains the parameter settings. Section 3 contains the distance matrix for all locations.supply chain management;reverse logistics;facility location;network design;product design

Supply Chain Optimisation in Animal Husbandry

The pig husbandry is an important economic sector. In the last decade, major changes have been made. As a result, farmers came together to introduce the "Eco Label pig", meeting the strong consumer and governmental call for high quality, animal friendly and environmentally friendly food. The market for Eco Label food is expected to grow enormously in the next years, asking for the development of an efficient and effective supply chain consisting of farmers, slaughter houses, wholesalers and retailers. We present some mathematical models to support decision making and evaluation of a large number of growth scenario's, using cost minimization given a number of Eco Label conditions.supply chain management;logistics;agricultural logistics;network configuration

Design Principles for Closed Loop Supply Chains

In this paper we study design principles for closed loop supply chains. Closed loop supply chains aim at closing material flows thereby limiting emission and residual waste, but also providing customer service at low cost. We study 'traditional' and 'new' design principles known in the literature. It appears that setting up closed loop supply chains requires some additional design principles because of sustainability requirements. At the same time however, we see that traditional principles also apply. Subsequently we look at a business situation at Honeywell. Here, only a subset of the relevant design principles is applied. The apparent low status of reverse logistics may provide an explanation for this. To some extent, the same mistakes are made again as were 20 years ago in, for instance, inbound logistics. Thus, obvious improvements can be made by applying traditional principles. Also new principles, which require a life cycle driven approach, need to be applied. This can be supported by advanced management tools such as LCA and LCC.reverse logistics;case-study;closed loop supply chains

The Value of RFID Technology Enabled Information to Manage Perishables

We address the value of RFID technology enabled information to manage perishables in the context of a supplier that sells a random lifetime product subject to stochastic demand and lost sales. The product's lifetime is largely determined by the time and temperature history in the supply chain. We compare two information cases to a Base case in which the product's time and temperature history is unknown and therefore its shelf life is uncertain. In the first information case, the time and temperature history is known and therefore the remaining shelf life is also known at the time of receipt. The second information case builds on the first case such that the supplier now has visibility up the supply chain to know the remaining shelf life of inventory available for replenishment. We formulate these three different cases as Markov decision processes, introduce well performing heuristics of more practical relevance, and evaluate the value of information through an extensive simulation using representative, real world supply chain parameters

Integration of Environmental Management and SCM

Sustainable supply chain management (SSCM) is a rather new phenomenon in the Operations Management/Operations Research literature. In the design of Sustainable Supply Chains the increase of transparency across the chain is essential and can be obtained through identification and traceability. Sustainable production often means a change in resource-areas and modes of transportation. Investment in sustainability implies innovations in supply chain management with accompanying costs and profits. We present a framework based on product and process innovations that provides insights in the relevant research questions for integrating Environmental Management and SCM. The framework is applied using the literature and practical case studies in this area

One and Two Way Packaging in the Dairy Sector

Choosing packaging material for dairy products and soft drinks is an interesting issue at the moment. Discussions arise on the costs impacts and environmental impacts of both one way packaging and reusable packaging. The aim of this article is to develop an evaluation tool providing costs and environmental impacts of the PC-bottle and the GT-packs in the dairy sector, considering forward and return flows. The evaluation tool enables the user to analyse the costs and environmental impacts of a supply chain with and without return flows using scenario analyses with respect to the use of various carrier types and the number of return loops. It appears that costs differences between PC-bottles and GT-pack are quite small. The PC bottle has a better environmental profile than the GT-pack. Scenario analysis on the carriers results in the advice to use preferably roll-in-containers with direct delivery, secondly roll-in-containers with delivery via distribution centers, thirdly in case of direct delivery either cartons or crates and cartons in case of delivery via distribution centers.pricing;supply chain management;reverse logistics;environment;life cycle assessment

The Environmental Gains of Remanufacturing: Evidence from the Computer and Mobile Industry

Remanufacturing has long been perceived as an environmentally-friendly initiative. The question of how remanufacturing moderates the relation between environmental impact and economic returns is still unanswered, however. In this paper, we focus our attention on the electronics industry. In particular, we take a close look at remanufacturing within the mobile and personal computers industries. We analyze whether remanufacturing for such products substantially mitigates the energy used in the life-cycle of these products, or whether as in most electrical equipments, it can only marginally contribute to such reduction. Using both process-based and economic input-output data, we show that remanufacturing significantly reduces total energy consumption. Furthermore, we test the ubiquitous hypothesis that the market of remanufactured products is composed by products that have been downgraded and are therefore sold for prices below the average price of the new equipments. Using data from 9,900 real transactions obtained from eBay, we show that this assumption is true for personal computers, but not for mobiles. More importantly, despite the fact that remanufactured products may suffer downgrading, and that consumers therefore command a high discount for them, the economic output per energy unit used is still higher for remanufactured products. We thus conclude that remanufacturing for these two products is not only environmentally friendly, but also eco-efficient