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Greening Supply Chains: Impact on Cost and Design

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  • Mallidis, I.
  • Vlachos, D.
  • Dekker, R.

Abstract

The consideration of environmental issues has emerged as a topic of critical importance for today’s globalized supply chains. The purpose of this paper is to develop a strategic-tactical decision-support methodology to assist managers in evaluating the impact of environmental issues, related to transportation emissions, on the transport geography of a region. Specifically we provide a tool that addresses: (i) supply chain network design, including port of entry and transportation mode, and (ii) decisions on leasing vs. outsourcing of transportation and distribution centers. The applicability of the proposed methodology is examined through the development of a sustainable supply chain network in the South-Eastern Europe region. The results indicate that in most cases outsourcing distribution centers to Third Party Logistics operators improves both the cost and the environmental performance of a company. In all cases outsourcing of transportation operations minimizes the amount of CO2 and PM emissions generated, while leasing minimizes costs.

Suggested Citation

  • Mallidis, I. & Vlachos, D. & Dekker, R., 2010. "Greening Supply Chains: Impact on Cost and Design," Econometric Institute Research Papers EI 2010-39a, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    • Handle: RePEc:ems:eureir:20374
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    References listed on IDEAS

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    1. Frota Neto, J. Quariguasi & Bloemhof-Ruwaard, J.M. & van Nunen, J.A.E.E. & van Heck, E., 2008. "Designing and evaluating sustainable logistics networks," International Journal of Production Economics, Elsevier, vol. 111(2), pages 195-208, February.
    2. Klibi, Walid & Martel, Alain & Guitouni, Adel, 2010. "The design of robust value-creating supply chain networks: A critical review," European Journal of Operational Research, Elsevier, vol. 203(2), pages 283-293, June.
    3. Mallidis, I. & Vlachos, D. & Dekker, R., 2010. "Greening Supply Chains: Impact on Cost and Design," Econometric Institute Research Papers EI 2010-39a, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    4. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
    5. Mark S. Daskin & Lawrence V. Snyder & Rosemary T. Berger, 2005. "Facility Location in Supply Chain Design," Springer Books, in: André Langevin & Diane Riopel (ed.), Logistics Systems: Design and Optimization, chapter 0, pages 39-65, Springer.
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    Citations

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    Cited by:

    1. van der Plas, C. & Tervonen, T. & Dekker, R., 2012. "Evaluation of scalarization methods and NSGA-II/SPEA2 genetic algorithms for multi-objective optimization of green supply chain design," Econometric Institute Research Papers EI2012-24, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    2. Mallidis, I. & Dekker, R. & Vlachos, D., 2010. "Greening Supply Chains: Impact on Cost and Design," Econometric Institute Research Papers EI 2010-39b, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    3. Kadziński, Miłosz & Tervonen, Tommi & Tomczyk, Michał K. & Dekker, Rommert, 2017. "Evaluation of multi-objective optimization approaches for solving green supply chain design problems," Omega, Elsevier, vol. 68(C), pages 168-184.
    4. Shaikha Al-Nuaimi & Abdul-Aziz A. Banawi & Sami G. Al-Ghamdi, 2019. "Environmental and Economic Life Cycle Analysis of Primary Construction Materials Sourcing under Geopolitical Uncertainties: A Case Study of Qatar," Sustainability, MDPI, vol. 11(21), pages 1-26, October.
    5. Mallidis, Ioannis & Dekker, Rommert & Vlachos, Dimitrios, 2012. "The impact of greening on supply chain design and cost: a case for a developing region," Journal of Transport Geography, Elsevier, vol. 22(C), pages 118-128.
    6. Konur, Dinçer, 2014. "Carbon constrained integrated inventory control and truckload transportation with heterogeneous freight trucks," International Journal of Production Economics, Elsevier, vol. 153(C), pages 268-279.

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    Keywords

    carbon footprint; supply chain design; supply chain sustainability;
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