Economic and Environmental Implications of Sourcing Decisions in Supply Networks
In this paper, we study a three-echelon supply chain consisting of suppliers, distribution centers, and retailers with environmental considerations. In particular, we investigate how sourcing strategies at the retailer level affect the chain's economic as well as environmental performance (measured by CO2emissions). First, we mathematically formulate the distribution decisions among the different echelons of the chain with a given sourcing strategy. Then, we demonstrate the effects of the sourcing decisions through a numerical study. The results of the numerical study show that as the number of potential supply sources for the retailers, i.e., the number of sourcing distribution centers, increases, the environmental performance of the best economic distribution policy might improve or worsen. Similarly, as the sourcing decisions change, the economic performance of the best environmental distribution policy might improve or worsen. As companies are becoming increasingly concerned with sustainability of their operations, the model we present in this paper can assist in devising not only cost-effective but also environmentally efficient distribution systems.
D. Konur et al., "Economic and Environmental Implications of Sourcing Decisions in Supply Networks," Proceedings of the 2016 Industrial and Systems Engineering Research Conference (2016, Anaheim, CA), pp. 387-392, Institute of Industrial Engineers (IIE), May 2020.
2016 Industrial and Systems Engineering Research Conference, ISERC 2016 (2016: May 21-24, Anaheim, CA)
Engineering Management and Systems Engineering
Keywords and Phrases
Distribution; Sourcing; Supply chain management; Sustainability
Article - Conference proceedings
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01 May 2020