Decentralized or centralized production : impacts to the environment, industry, and the economy

Since product take-back is mandated in Europe, and has effects for producers worldwide including the U.S., designing efficient forward and reverse supply chain networks is becoming essential for business viability. Centralizing production facilities may reduce costs but perhaps not environmental impacts. Decentralizing a supply chain may reduce transportation environmental impacts but increase capital costs. Facility location strategies of centralization or decentralization are tested for companies with supply chains that both take back and manufacture products. Decentralized and centralized production systems have different effects on the environment, industry and the economy. Decentralized production systems cluster suppliers within the geographical market region that the system serves. Centralized production systems have many suppliers spread out that meet all market demand. The point of this research is to help further the understanding of company decision-makers about impacts to the environment and costs when choosing a decentralized or centralized supply chain organizational strategy. This research explores; what degree of centralization for a supply chain makes the most financial and environmental sense for siting facilities; and which factories are in the best location to handle the financial and environmental impacts of particular processing steps needed for product manufacture. This research considered two examples of facility location for supply chains when products are taken back; the theoretical case involved shoe resoling and a real world case study considered the location of operations for a company that reclaims multiple products for use as material inputs. For the theoretical example a centralized strategy to facility location was optimal: whereas for the case study a decentralized strategy to facility location was best. In conclusion, it is not possible to say that a centralized or decentralized strategy to facility location is in general best for a company that takes back products. Each company’s specific concerns, needs, and supply chain details will determine which degree of centralization creates the optimal strategy for siting their facilities

Impacts to the Environment, Industry, and the Economy

Since product take-back is mandated in Europe, and has effects for producers worldwide including the U.S., designing efficient forward and reverse supply chain networks is becoming essential for business viability. Centralizing production facilities may reduce costs but perhaps not environmental impacts. Decentralizing a supply chain may reduce transportation environmental impacts but increase capital costs. Facility location strategies of centralization or decentralization are tested for companies with supply chains that both take back and manufacture products. Decentralized and centralized production systems have different effects on the environment, industry and the economy. Decentralized production systems cluster suppliers within the geographical market region that the system serves. Centralized production systems have many suppliers spread out that meet all market demand. Th

Collaborative international research: Technology transfer & efficiency of wastewater treatment systems in rural communities of Bolivia

There has been increased recognition that the world faces serious challenges in terms of long-term economic growth, societal prosperity, and environmental protection. In particular, health problems resulting from environmental risks and a lack of economic resources in the developing world pose daunting challenges to the global scientific and engineering communities. Addressing these challenges through international research experiences integrated with sustainability and appropriate technology principles represents a significant and critical contribution to a more sustainable future. This paper describes a National Science Foundation-supported international research partnership that helps address sustainable development through increasing global access to adequate water and sanitation. The partnership consisted of seven undergraduate and graduate students from Michigan Technological University, six undergraduate environmental engineering students from Bolivian Technological University (UTB), and technical staff affiliated with a non-governmental organization, ACDI-VOCA (Agricultural Cooperative Development International and Volunteers in Overseas Cooperative Assistance). The Michigan Tech students were studying environmental engineering, civil engineering, mechanical engineering, and environmental policy. Wastewater treatment systems located in three small rural communities (Palos Blancos, Sapecho, and San Antonio) were studied. These three systems include: 1) a septic tank with anaerobic filter, 2) an Upflow Sludge Blanket Reactor with stabilizing lagoons, and 3) a stabilization-lagoon system respectively. Detailed water quality analyses were performed at each plant and performance was compared with the projected performance from the original design. System efficiency was evaluated in terms of cost, treatment effectiveness, and maintenance. Additionally, interviews with water committees were completed to determine what understanding of the system was conveyed when the technology was transferred from the design and construction stage to the community. Results showed that only two of three systems were functioning due to failure in operation, low capacity, insufficient funds for maintenance, system over-design, and the lack of knowledge base about the system from the community. Plant performance appears to be strongly influenced by the knowledge base and lack of funds for each water committee. Recommendations were made for greater ease in community ownership of constructed wastewater treatment systems. This collaborative research effort produced an intensive cultural exchange and inter-disciplinary collaboration demonstrating developing communities\u27 reasons why systems under-perform. © 2008 ASCE

Development of social, environmental, and economic indicators for a small/medium enterprise

Purpose: A growing number of companies are measuring the sustainability performance of their businesses. Some companies are using pre-existing sustainability indicator systems to assess their performance. Other companies are looking beyond measurement of impacts to create their own system of indicators to measure sustainability. Formulating relevant indicators of sustainability performance is a difficult task for any organization, but especially for small/medium enterprises (SMEs) that often lack financial, knowledge, and labor resources. The purpose of this paper is to consider two different sustainability assessment approaches undertaken by a single case study company, a start-up SME. Design/methodology/approach: The authors developed a method for an SME, Ecologic Designs, Inc., a self-identified green business that reclaims materials to make bags and accessories, to create its own sustainability indicators without outside expert help. This research chronicles the struggles and triumphs of the SME in measuring its sustainability performance using a pre-existing system and then using the developed method. Findings: The SME\u27s managers applied the developed method to create, select, and weight sustainability indicators to help answer a strategic planning decision - where to locate operations and facilities in an expanding supply chain. Originality/value; The paper describes the struggles and triumphs ofastart-up SMEinmeasuring its sustainability performance using a pre-existing system and then using the developed method. © Emerald Group Publishing Limited

Development of social, environmental, and economic indicators for a small/medium enterprise

Purpose – A growing number of companies are measuring the sustainability performance of their businesses. Some companies are using pre-existing sustainability indicator systems to assess their performance. Other companies are looking beyond measurement of impacts to create their own system of indicators to measure sustainability. Formulating relevant indicators of sustainability performance is a difficult task for any organization, but especially for small/medium enterprises (SMEs) that often lack financial, knowledge, and labor resources. The purpose of this paper is to consider two different sustainability assessment approaches undertaken by a single case study company, a start-up SME. Design/methodology/approach – The authors developed a method for an SME, Ecologic Designs, Inc., a self-identified green business that reclaims materials to make bags and accessories, to create its own sustainability indicators without outside expert help. This research chronicles the struggles and triumphs of the SME in measuring its sustainability performance using a pre-existing system and then using the developed method. Findings – The SME's managers applied the developed method to create, select, and weight sustainability indicators to help answer a strategic planning decision – where to locate operations and facilities in an expanding supply chain. Originality/value – The paper describes the struggles and triumphs of a start-up SME in measuring its sustainability performance using a pre-existing system and then using the developed method.Facility location, Green business, Indicator development, Small to medium-sized enterprises, Start up companies, Strategic decision making, Sustainability, Sustainability assessment