Environmental
Responsibility
Financial
Responsibility
Social
Responsibility
Supply Chains
and Sustainability
Chapter
15 Supply Chain Sustainability
1. The Three Elements of Supply Chain Sustainability
1. Define financial responsibility
2. Define environmental responsibility
3. Define social responsibility
a. Humanitarian logistics
2. Reverse Logistics
Reverse Logistics is defined as:
1. Supply Chain Design for Reverse Logistics
a. A supply chain that integrates forward logistics with reverse logistics is called a
closed-loop supply chain
2. Financial Implications
a. Incentives used to make reverse logistics financially viable include:
•
•
•
•
•
3. Energy Efficiency
Energy Efficiency: with respect to energy consumption throughout the supply chain
Carbon footprint:
1. Transportation distance
Application 15.1: Building an Efficient Route for Equipment Repair Inc.
Equipment Repair Inc. is a privately-owned firm located in Monroe Kansas.
Each workday a repair vehicle is dispatched to customer locations that have
requested an equipment repair. After all repairs have been completed, the
vehicle must be returned to the shop in Monroe. For one particular day, 5
customers in 5 different cities must be visited. The distance between any two
customers in miles reported by city name is given below.
To/From
Monroe
Apex
Concord
Dover
Monroe
–
15
30
10
Apex
15
–
12
22
Concord
30
12
–
5
Dover
10
22
5
–
Oxford
20
25
26
18
Use the Nearest Neighbor heuristic to identify an efficient route for the
truck and compute the truck’s total distance traveled.
2. Freight density – freight rate is based on six factors
(1)
(2)
(3)
(4)
(5)
(6)
Application 15.2: Evaluating an Increase in Freight Density
Kayco Stamping in Ft. Worth, Texas ships sheet metal components to a
switch box assembly plant in Waterford, Virginia. Each component weights
approximately 25 lbs. and 50 components fit on a standard pallet. A
complete pallet ships as freight class 92.5.
Calculate the shipment cost for 3 and 13 pallets.
3. Efficient transportation modes.
a. Four major modes
i. Air freight
ii. Trucking
iii. Shipping by water
iv. Rail
b. Intermodal shipments:
c. Transportation technology:
4. Disaster Relief Supply Chains
Two classifications of disaster:
1. The three major disaster relief operations
2. Managing disaster relief operations
a. The life cycle of disaster relief supply chains has five stages:
(1)
(2)
(3)
(4)
(5)
b. The unpredictability and severity of disasters pose unique challenges to supply chain
managers that include:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
5. Supply Chain Ethics
1. Buyer-Supplier relationships
a. 9 dimensions for ethical workforce management:
(1)
Prepare
Disaster
Response Recovery
Forecasts and Early Warnings
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
b. Unethical behaviors also include:
2. Facility location
3. Inventory management
6. Managing Sustainable Supply Chains
• ISO Standards
o ISO 14001:2004
o ISO 26000:2010
• Steps to manage a sustainable supply chain
(1)
(2)
(3)
(4)
(5)