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

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

Operations Research for Green Logistics – An Overview of Aspects, Issues, Contributions and Challenges

The worldwide economic growth of the last century has given rise to a vast consumption of goods while globalization has led to large streams of goods all over the world. The production, transportation, storage and consumption of all these goods, however, have created large environmental problems. Today, global warming, created by large scale emissions of greenhouse gasses, is a top environmental concern. Governments, action groups and companies are asking for measures to counter this threat. Operations research has a long tradition in improving operations and especially in reducing costs. In this paper, we present a review that highlights the contribution of operations research to green logistics, which involves the integration of environmental aspects in logistics. We give a sketch of the present and possible developments, focussing on design, planning and control in a supply chain for transportation, inventory of products and facility decisions. While doing this, we also indicate several areas where environmental aspects could be included in OR models for logistics

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

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

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

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

Knowledge sharing in an Emerging Network of Practice: The Role of a Knowledge Portal

This article addresses the emergence of networks of practice and the role of knowledge sharing via knowledge portals. Its focus is on factors that stimulate the successful emergence of networks of practice. Literature on knowledge management and communities of practice suggest the preexistence of shared knowledge or a shared believe system as a condition sine qua non for the networks of practice to emerge. We challenge this assumption and argue and demonstrate that common knowledge and believe systems are rather a result of knowledge sharing instead of a pre-condition. The central question is how a knowledge portal facilitates the diffusion of knowledge among rather loosely coupled and often disconnected innovation projects. Research is carried out in the agricultural industry in the Netherlands. In this industry there is a need to change from a product-oriented to a problemoriented innovation structure. The set up of a platform and knowledge portal around agro-logistics – crossing different product-oriented production clusters – was therefore a logical result. It gave the opportunity to analyze what the impact of a knowledge portal is in a situation that people and projects come from different organizations that do not know each other. Do they start to share knowledge and what are the conditions? With regard to the case study of the knowledge portal in the agricultural industry we conclude that a knowledge portal will have an impact on how projects are sharing knowledge and on the emergence of a network of practice. The results show that preconditions for the emergence of a network of practice are sense of urgency and fragmented awareness. These results also indicate the important role of a knowledge broker. The developed knowledge portal seems to lead to overcoming structural holes and a closer cognitive distance among the projects. However, we did not find a direct effect of the knowledge portal on sharing tacit knowledge. In the initial phase of a network of practice the knowledge exchange seems to focus on general, non-project specific and explicit knowledge. There was also no direct effect of the knowledge portal on the reciprocity of knowledge exchange among the projects. However, knowledge was shared between the project level and the platform and public level. Conclusions and directions for future research are formulated

Proactive environmental strategies pay off

Although there is contradicting evidence on the impact of a company’s proactive environmental strategy on its environmental performance, recent research shows such an approach can indeed make a difference