Factoring environmental concerns in supply chain decision making Online publication date: Wed, 02-Jun-2010
by Maria E. Mayorga, Ravi Subramanian
International Journal of Business and Systems Research (IJBSR), Vol. 4, No. 4, 2010
Abstract: Recent regulatory and market-driven environmental pressures have fundamentally impacted decision making throughout supply chain systems, from raw material sourcing through processing, use and post-use – including the logistical activities in between. In this paper, we focus on three factors – legislative, economic and social – that have introduced environment-related complexities into supply chain decisions. For each of these factors, we provide examples of how the accompanying complexities can be characterised within decision models in the form of parameters, objectives or constraints. The contribution of this work lies in highlighting that conventional supply chain decision models have to be recast and solved differently to accommodate legislative, economic and social pressures related to the life-cycle environmental impacts of products or technologies.
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