IDEAS home Printed from https://ideas.repec.org/a/ejn/ejbmjr/v6y2018i1p7-22.html
   My bibliography  Save this article

The Penalty Production Model – An Alternative Working Capital Solution For Reverse Supply Chains

Author

Listed:
  • Anca Iuliana Nicolae

    (Bucharest Academy of Economic Studies, Romania)

Abstract

The working capital issue increased lately for small and medium-sized companies which strived to behold their position on the competitive market in the long term. A shift in competition from firm versus firm to supply chain versus supply chain increased the role that every member of the supply chain had in its long-run development or failure. This paper presents an alternative working capital production model which collects its working capital needs by using an auto-financing method in the sorting stage of the recycling process for reverse supply chains. The penalty system was designed by the author (as part of the operative drift for one of the largest Norwegian recycling companies) as an aggregation of penalty types and their respective amounts for each category that a load can comprise at the entrance in the manufacturing area. Results generated by the new production system highlighted the fact that working capital could be obtained by autofinancing mechanisms, and that the total income could be higher than the value based on a fixedfee penalty system (the complex model doubled previous income already one year after new system was implemented), achieving in the same time better waste control between original waste declaration and handled waste resulted after the sorting process. Moreover, the sorting facility decreased its own production costs (since extra working capital was generated by applying the auto-financing mechanism), and obtained better control for every fraction processed at the plant (dangerous waste presented in this study) between invoiced volumes and quantities shipped forward in the reverse supply chain.

Suggested Citation

  • Anca Iuliana Nicolae, 2018. "The Penalty Production Model – An Alternative Working Capital Solution For Reverse Supply Chains," Eurasian Journal of Business and Management, Eurasian Publications, vol. 6(1), pages 7-22.
    • Handle: RePEc:ejn:ejbmjr:v:6:y:2018:i:1:p:7-22
    as

    Download full text from publisher

    File URL: https://eurasianpublications.com/wp-content/uploads/2021/02/EJBM-6.1.2.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Andrew A. King & Michael J. Lenox, 2001. "Does It Really Pay to Be Green? An Empirical Study of Firm Environmental and Financial Performance: An Empirical Study of Firm Environmental and Financial Performance," Journal of Industrial Ecology, Yale University, vol. 5(1), pages 105-116, January.
    2. Eglė Stonkutė & Jolita Vveinhardt, 2016. "Key Success Factors for Small and Medium Size Enterprises in a Context of Global Supply Chains," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis (ed.), Entrepreneurship, Business and Economics - Vol. 1, edition 1, pages 89-102, Springer.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Valeria Costantini & Francesco Crespi & Giovanni Marin & Elena Paglialunga, 2016. "Eco-innovation, sustainable supply chains and environmental performance in European industries," LEM Papers Series 2016/19, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    2. Omaima A.G. Hassan & Peter Romilly, 2018. "Relations between corporate economic performance, environmental disclosure and greenhouse gas emissions: New insights," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 893-909, November.
    3. Aseem Kaul & Jiao Luo, 2018. "An economic case for CSR: The comparative efficiency of for‐profit firms in meeting consumer demand for social goods," Strategic Management Journal, Wiley Blackwell, vol. 39(6), pages 1650-1677, June.
    4. Satyajit Majumdar & Gordhan K. Saini, 2016. "CSR in India: Critical Review and Exploring Entrepreneurial Opportunities," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 2(1), pages 56-79, January.
    5. Kjetil Telle, 2004. "Effects of inspections on plants' regulatory and environmental performance - evidence from Norwegian manufacturing industries," Discussion Papers 381, Statistics Norway, Research Department.
    6. Rayenda Khresna Brahmana & Maria Kontesa, 2021. "Does clean technology weaken the environmental impact on the financial performance? Insight from global oil and gas companies," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3411-3423, November.
    7. Eng, Li Li & Fikru, Mahelet G. & Vichitsarawong, Thanyaluk, 2021. "The impact of toxic chemical releases and their management on financial performance," Advances in accounting, Elsevier, vol. 53(C).
    8. Stefan Ambec & Paul Lanoie, 2007. "When and Why Does It Pay To Be Green?," CIRANO Working Papers 2007s-20, CIRANO.
    9. Hidemichi Fujii & Kazuyuki Iwata & Shinji Kaneko & Shunsuke Managi, 2013. "Corporate Environmental and Economic Performance of Japanese Manufacturing Firms: Empirical Study for Sustainable Development," Business Strategy and the Environment, Wiley Blackwell, vol. 22(3), pages 187-201, March.
    10. Qian, Wei & Schaltegger, Stefan, 2017. "Revisiting carbon disclosure and performance: Legitimacy and management views," The British Accounting Review, Elsevier, vol. 49(4), pages 365-379.
    11. Petra Andries & Ute Stephan, 2019. "Environmental Innovation and Firm Performance: How Firm Size and Motives Matter," Sustainability, MDPI, vol. 11(13), pages 1-17, June.
    12. Pascal Paillé & Yang Chen & Olivier Boiral & Jiafei Jin, 2014. "The Impact of Human Resource Management on Environmental Performance: An Employee-Level Study," Journal of Business Ethics, Springer, vol. 121(3), pages 451-466, May.
    13. Massimo Mariani & Fabio Pizzutilo & Alessandra Caragnano & Marianna Zito, 2021. "Does it pay to be environmentally responsible? Investigating the effect on the weighted average cost of capital: Environmental commitment and the cost of capital," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1854-1869, November.
    14. Bennear, Lori S. & Olmstead, Sheila M., 2008. "The impacts of the "right to know": Information disclosure and the violation of drinking water standards," Journal of Environmental Economics and Management, Elsevier, vol. 56(2), pages 117-130, September.
    15. Francesco Perrini & Angeloantonio Russo & Antonio Tencati & Clodia Vurro, 2011. "Deconstructing the Relationship Between Corporate Social and Financial Performance," Journal of Business Ethics, Springer, vol. 102(1), pages 59-76, March.
    16. Joern Hoppmann & Alice Sakhel & Marcel Richert, 2018. "With a little help from a stranger: The impact of external change agents on corporate sustainability investments," Business Strategy and the Environment, Wiley Blackwell, vol. 27(7), pages 1052-1066, November.
    17. Suhong Li & Thomas Ngniatedema & Fang Chen, 2017. "Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 776-790, September.
    18. Khurshid Djalilov & Christopher A. Hartwell, 2023. "The spirit is willing, but the institutions are weak: disclosure of corporate social responsibility and the financial sector in transition," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(2), pages 385-427, June.
    19. Hammad Riaz & Abubakr Saeed, 2020. "Impact of environmental policy on firm's market performance: The case of ISO 14001," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 681-693, March.
    20. Liu, Cenjie & Fang, Jiayu & Xie, Rui, 2021. "Energy policy and corporate financial performance: Evidence from China's 11th five-year plan," Energy Economics, Elsevier, vol. 93(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ejn:ejbmjr:v:6:y:2018:i:1:p:7-22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Esra Barakli (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.