Greening versus resilience: A supply chain design perspective

This paper investigates the extent to which supply chain greening and buttressing (building robustness) strategies are supportive or conflicting. A supply chain design model is introduced which uses an environmental performance scoring approach and a robustness measure to explore the relationship between greening and buttressing. Potential tradeoffs to develop robustly green and greenly robust supply chains are evaluated. Data from a multinational apparel company is used. Results show both greening and buttressing can be costly, green supply chains are most sensitive to disruption, robust supply chains have strong long term benefits, and buttressing a green supply chain is a good investment.

[1]  D. Ivanov.  Revealing interfaces of supply chain resilience and sustainability: a simulation study , 2018, Int. J. Prod. Res..

[2]  Huantian Cao,et al.  C2CAD: a sustainable apparel design and production model , 2009 .

[3]  Martin Christopher,et al.  Achieving supply chain resilience: the role of procurement , 2014 .

[4]  Joseph Sarkis,et al.  Green supply chain management: A review and bibliometric analysis , 2015 .

[5]  Xiaofan Lai,et al.  A multi-objective optimization for green supply chain network design , 2011, Decis. Support Syst..

[6]  Amin Chaabane,et al.  Designing supply chains with sustainability considerations , 2011 .

[7]  Virgilio Cruz-Machado,et al.  Integrating Lean, Agile, Resilience and Green Paradigms in Supply Chain Management (LARG_SCM) , 2011 .

[8]  Oded Berman,et al.  Facility Reliability Issues in Network p-Median Problems: Strategic Centralization and Co-Location Effects , 2007, Oper. Res..

[9]  Jesse R. O'Hanley,et al.  Optimizing system resilience: A facility protection model with recovery time , 2012, Eur. J. Oper. Res..

[10]  Armin Jabbarzadeh,et al.  Designing a Supply Chain Network under the Risk of Disruptions , 2012 .

[11]  Chunguang Bai,et al.  Determining and applying sustainable supplier key performance indicators , 2014 .

[12]  Armin Jabbarzadeh,et al.  Marrying supply chain sustainability and resilience: A match made in heaven , 2016 .

[13]  Kannan Govindan,et al.  GResilient index to assess the greenness and resilience of the automotive supply chain , 2011 .

[14]  Qingwei Li,et al.  Reliable facility location design under disruptions , 2013, Comput. Oper. Res..

[15]  Joseph Sarkis,et al.  Tactical supply chain planning models with inherent flexibility: definition and review , 2016, Ann. Oper. Res..

[16]  Christopher S. Tang,et al.  Research advances in environmentally and socially sustainable operations , 2012, Eur. J. Oper. Res..

[17]  Gerald Rebitzer,et al.  IMPACT 2002+: A new life cycle impact assessment methodology , 2003 .

[18]  Joseph Sarkis,et al.  A tradeoff model for green supply chain planning:A leanness-versus-greenness analysis , 2015 .

[19]  Kannan Govindan,et al.  Ecosilient Index to assess the greenness and resilience of the upstream automotive supply chain , 2013 .

[20]  Lawrence V. Snyder,et al.  Facility location under uncertainty: a review , 2006 .

[21]  Kendall Roth,et al.  Why Companies Go Green: A Model of Ecological Responsiveness , 2000 .

[22]  Armin Jabbarzadeh,et al.  Dynamic supply chain network design for the supply of blood in disasters: A robust model with real world application , 2014 .

[23]  Helena Carvalho,et al.  Lean, agile, resilient and green: divergencies and synergies , 2011 .

[24]  Abbas A. Kurawarwala,et al.  A robustness approach to uncapacitated network design problems , 1996 .

[25]  Genaro J. Gutierrez,et al.  A robustness approach to international sourcing , 1995, Ann. Oper. Res..

[26]  Marcus Brandenburg,et al.  Quantitative models for sustainable supply chain management: Developments and directions , 2014, Eur. J. Oper. Res..

[27]  Andrew Lim,et al.  Reliable logistics networks design with facility disruptions , 2011 .

[28]  Mark S. Daskin,et al.  Carbon Footprint and the Management of Supply Chains: Insights From Simple Models , 2013, IEEE Transactions on Automation Science and Engineering.

[29]  Chase Rainwater,et al.  Robust facility location: Hedging against failures , 2014, Reliab. Eng. Syst. Saf..

[30]  J. Sarkis,et al.  Framing Sustainability Performance of Supply Chains with Multidimensional Indicators , 2014 .

[31]  José Miguel Laínez,et al.  Incorporating environmental impacts and regulations in a holistic supply chains modeling: An LCA approach , 2009, Comput. Chem. Eng..

[32]  Reza Zanjirani Farahani,et al.  Hierarchical facility location problem: Models, classifications, techniques, and applications , 2014, Comput. Ind. Eng..

[33]  A Gerodimos,et al.  Robust Discrete Optimization and its Applications , 1996, J. Oper. Res. Soc..

[34]  Lee Luong,et al.  Genetic algorithm optimisation of an integrated aggregate production–distribution plan in supply chains , 2012 .

[35]  Virgilio Cruz-Machado,et al.  A decision-making model for Lean, Agile, Resilient and Green supply chain management , 2012 .

[36]  António Grilo,et al.  A model for evaluating Lean, Agile, Resilient and Green practices interoperability in supply chains , 2011, 2011 IEEE International Conference on Industrial Engineering and Engineering Management.

[37]  David Hunkeler,et al.  Life Cycle Assessment , 2004 .

[38]  K. Govindan,et al.  Lean, green and resilient practices influence on supply chain performance: interpretive structural modeling approach , 2013, International Journal of Environmental Science and Technology.

[39]  Hugh R. Medal,et al.  A multi-objective integrated facility location-hardening model: Analyzing the pre- and post-disruption tradeoff , 2014, Eur. J. Oper. Res..

[40]  Turan Paksoy,et al.  The implications of carbon pricing in Australia: An industrial logistics planning case study , 2013 .

[41]  Armin Jabbarzadeh,et al.  An integrated supply chain design model with random disruptions consideration , 2010 .

[42]  Cory Searcy,et al.  An analysis of metrics used to measure performance in green and sustainable supply chains , 2015 .

[43]  Reza Zanjirani Farahani,et al.  Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case , 2013, Eur. J. Oper. Res..

[44]  A. Ramudhin,et al.  Design of sustainable supply chains under the emission trading scheme , 2012 .

[45]  D. Zweig,et al.  Managing the "invisibles". , 2014, Harvard business review.

[46]  Qingwei Li,et al.  A heuristic approach to the design of fortified distribution networks , 2013 .

[47]  Virgilio Cruz-Machado,et al.  A proposal of LARG Supply Chain Management Practices and a Performance Measurement System , 2011 .

[48]  Joseph Sarkis,et al.  The impact of carbon pricing on a closed-loop supply chain: an Australian case study , 2013 .

[49]  Zuo-Jun Max Shen,et al.  The Reliable Facility Location Problem: Formulations, Heuristics, and Approximation Algorithms , 2011, INFORMS J. Comput..

[50]  Joseph Sarkis,et al.  Convincing Industry that There is Value in Environmentally Supply Chains , 2009 .

[51]  Mark S. Daskin,et al.  Stochastic p-robust location problems , 2006 .

[52]  Mark S. Daskin,et al.  A facility reliability problem: Formulation, properties, and algorithm , 2010 .

[53]  Amanda J. Schmitt,et al.  OR/MS models for supply chain disruptions: a review , 2014 .

[54]  Yanfeng Ouyang,et al.  A continuum approximation approach to reliable facility location design under correlated probabilistic disruptions , 2010 .

[55]  Abbas Al-Refaie,et al.  Strategic Closed-Loop Facility Location Problem With Carbon Market Trading , 2013, IEEE Transactions on Engineering Management.

[56]  Virgilio Cruz-Machado,et al.  Integration of Lean, Agile, Resilient and Green Paradigms in a Business Model Perspective: Theoretical Foundations , 2016 .

[57]  Samir Elhedhli,et al.  Green supply chain network design to reduce carbon emissions , 2012 .

[58]  Jun Zhuang,et al.  Toward an integrated sustainable-resilient supply chain: A pharmaceutical case study , 2017 .

[59]  Lawrence V. Snyder,et al.  Reliability Models for Facility Location: The Expected Failure Cost Case , 2005, Transp. Sci..

[60]  Armin Jabbarzadeh,et al.  Resilient and sustainable supply chain design: sustainability analysis under disruption risks , 2018, Int. J. Prod. Res..

[61]  M. Helms,et al.  Performance measurement for green supply chain management , 2005 .

[62]  Virgilio Cruz-Machado,et al.  LARG index: A benchmarking tool for improving the leanness, agility, resilience and greenness of the automotive supply chain , 2016 .

[63]  Armin Jabbarzadeh,et al.  Robust supply chain network design: an optimization model with real world application , 2014, Annals of Operations Research.

[64]  F. Reinhardt.  Bringing the environment down to earth. , 1999, Harvard business review.

[65]  Joerg S. Hofstetter,et al.  Critical factors for sub-supplier management: A sustainable food supply chains perspective , 2014 .

[66]  Wei-Chang Yeh,et al.  Using multi-objective genetic algorithm for partner selection in green supply chain problems , 2011, Expert Syst. Appl..

[67]  David Simchi-Levi,et al.  From superstorms to factory fires , 2014 .

[68]  Yanfeng Ouyang,et al.  Reliable Facility Location Design Under the Risk of Disruptions , 2010, Oper. Res..

[69]  Genaro J. Gutierrez,et al.  Algorithms for robust single and multiple period layout planning for manufacturing systems , 1992 .

[70]  Kuan Yew Wong,et al.  Development of key performance measures for the automobile green supply chain , 2011 .

[71]  Stefan Seuring,et al.  A review of modeling approaches for sustainable supply chain management , 2013, Decis. Support Syst..

[72]  R. Heijungs,et al.  Life cycle assessment An operational guide to the ISO standards , 2001 .

[73]  Jesse R. O'Hanley,et al.  Probability chains: A general linearization technique for modeling reliability in facility location and related problems , 2013, Eur. J. Oper. Res..

[74]  Augusto Q. Novais,et al.  Bi-objective optimization approach to the design and planning of supply chains: Economic versus environmental performances , 2011, Comput. Chem. Eng..

[75]  Mark Goh,et al.  Policy insights from a green supply chain optimisation model , 2015 .

[76]  J. Sheu,et al.  Designing a supply chain resilient to major disruptions and supply/demand interruptions , 2016 .

[77]  Joseph Sarkis,et al.  Carbon pricing versus emissions trading: A supply chain planning perspective , 2015 .

[78]  Yanfeng Ouyang,et al.  Joint Inventory-Location Problem Under Risk of Probabilistic Facility Disruptions , 2011 .

[79]  Anna Nagurney,et al.  Sustainable supply chain network design: a multicriteria perspective , 2010 .

[80]  Efstratios N. Pistikopoulos,et al.  Environmentally conscious long-range planning and design of supply chain networks , 2005 .