scholarly journals Corporate Social Responsibility Practices in the U.S.: Using Reverse Supply Chain Network Design and Optimization Considering Carbon Cost

2019 ◽  
Vol 11 (7) ◽  
pp. 2097 ◽  
Author(s):  
Bandar Alkhayyal

A research model using the market price for greenhouse gas (GHG) emissions illustrates how the policies, and economic and environment implications of the carbon price can be formulated using a deterministic equilibrium model. However, with increasing carbon costs, the optimal reverse supply chain (RSC) system is being required to adapt and has undergone many distinct shifts in character as it seeks out new configurations through which costs may be effectively managed and minimized. The model was studied comprehensively in terms of quantitative performance using orthogonal arrays. The results were compared to top-down estimates produced through economic input-output life cycle assessment (EIO-LCA) models, providing a basis to contrast remanufacturing GHG emission quantities with those realized through original equipment manufacturing operations. Introducing a carbon cost of $40/t CO2e increased modeled remanufacturing costs by 2.7%, but also increased original equipment costs by 2.3%. The research presented in this study puts forward the theoretical modeling of optimal RSC systems and provides an empirical case study concerning remanufactured appliances, an area of current industrial literature in which there is a dearth of study.

2021 ◽  
Author(s):  
Amulya Gurtu

Reducing supply chain costs is a primary concern of every organization. Organizations have implemented offshore outsourcing as an effective strategy towards reducing supply chain costs. However, neither government nor corporate organizations have sufficiently taken into account the effects of this strategy on global greenhouse gas (GHG) emissions. The purpose of this research is to analyze the impact of offshore outsourcing on global GHG emissions, and the effect of changes in fuel prices in addition to a carbon price on additional emissions on supply chain costs. The purpose is supported by five key objectives. The objectives are addressed through a systematic methodology. The analysis is supported by a literature review, and the development and testing of mathematical models. Finally, a framework to reduce global GHG emissions through a carbon price on differential emissions from manufacturing and additional emissions from international transportation is proposed. The findings suggest that offshore outsourcing has increased global emissions. The fuel prices are increasing at a rate higher than the overall rate. A carbon price on excess emissions due to outsourcing coupled with increasing fuel prices impacts supply chain costs adversely and leads to bigger lot-sizes. As an illustration at the national level, the framework showed that emissions for the USA increased by about 20% for every year between 2007 and 2010. As another example from a corporate organization, the net profit (profit after tax) for Wal-Mart was reduced by about 19% for 2006 due to a carbon price on manufacturing emissions alone. The suggested framework is a major contribution for quantifying the extent of changes in the emissions due to offshore outsourcing and the value of these emissions at a prevailing rate of carbon tax in North America. It is intended to provide a basis for reducing emissions and costs from global supply chains. The proposed framework provides a level playing field to manufacturers in different countries using different technologies, provides incentives to organizations for manufacturing in locations where net emissions are low, helps national governments determine how they can generate revenue for dealing with emissions, and, most importantly, aids in reducing overall global GHG emissions.


2021 ◽  
Author(s):  
Amulya Gurtu

Reducing supply chain costs is a primary concern of every organization. Organizations have implemented offshore outsourcing as an effective strategy towards reducing supply chain costs. However, neither government nor corporate organizations have sufficiently taken into account the effects of this strategy on global greenhouse gas (GHG) emissions. The purpose of this research is to analyze the impact of offshore outsourcing on global GHG emissions, and the effect of changes in fuel prices in addition to a carbon price on additional emissions on supply chain costs. The purpose is supported by five key objectives. The objectives are addressed through a systematic methodology. The analysis is supported by a literature review, and the development and testing of mathematical models. Finally, a framework to reduce global GHG emissions through a carbon price on differential emissions from manufacturing and additional emissions from international transportation is proposed. The findings suggest that offshore outsourcing has increased global emissions. The fuel prices are increasing at a rate higher than the overall rate. A carbon price on excess emissions due to outsourcing coupled with increasing fuel prices impacts supply chain costs adversely and leads to bigger lot-sizes. As an illustration at the national level, the framework showed that emissions for the USA increased by about 20% for every year between 2007 and 2010. As another example from a corporate organization, the net profit (profit after tax) for Wal-Mart was reduced by about 19% for 2006 due to a carbon price on manufacturing emissions alone. The suggested framework is a major contribution for quantifying the extent of changes in the emissions due to offshore outsourcing and the value of these emissions at a prevailing rate of carbon tax in North America. It is intended to provide a basis for reducing emissions and costs from global supply chains. The proposed framework provides a level playing field to manufacturers in different countries using different technologies, provides incentives to organizations for manufacturing in locations where net emissions are low, helps national governments determine how they can generate revenue for dealing with emissions, and, most importantly, aids in reducing overall global GHG emissions.


2020 ◽  
Author(s):  
Sunil Sunil ◽  
Dharmanshu Kumar ◽  
Udit Mehta ◽  
Rakesh Kumar

Author(s):  
Peng Li ◽  
Di Wu

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.


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