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Volume 233, Issue 2, Pages 293-458 (1 March 2014) Eco-Efficient Green Supply Chain Management

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Edited by Kannan Govindan, Charbel J.C. Jabbour, Joseph Sarkis, Qinghua Zhu and Yong Geng

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Volume 233, Issue 2 pp. 293-458 (1 March 2014)

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Chain Management

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Volume 232, Issue 2 pp. 241-426 (16 January 2014)

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Eco-Efficient Green Supply

Volumes 221 - 230 (2012 - 2013) Volumes 211 - 220

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Eco-efficiency based green supply chain management: Current status and opportunities Pages 293-298 Kannan Govindan, Joseph Sarkis, Charbel José Chiappetta Jabbour, Qinghua Zhu, Yong Geng


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Quantitative models for sustainable supply chain management: Developments and directions

Original Research Article

Pages 299-312 Marcus Brandenburg, Kannan Govindan, Joseph Sarkis, Stefan Seuring Show preview | PDF (1085 K) | Recommended articles | Related reference work articles

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Alliance or no alliance—Bargaining power in competing reverse supply chains Original Research Article Pages 313-325 Jiuh-Biing Sheu, Xiao-Qin Gao Show preview | PDF (1909 K) | Supplementary content Recommended articles | Related reference work articles

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Reverse supply chain coordination by revenue sharing contract: A case for the personal computers industry Original Research Article

Pages 326-336 Kannan Govindan, Maria Nicoleta Popiuc Show preview |

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Determining optimal resource recycling boundary at regional level: A case study on Tokyo Metropolitan Area in Japan


Pages 337-348 Xudong Chen, Tsuyoshi Fujita, Yoshitsugu Hayashi, Hirokazu Kato, Yong Geng Show preview | PDF (2694 K) | Supplementary content Recommended articles | Related reference work articles

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Highlights • Recycling boundaries are determined by characteristics of wastes and recycling. • Determinants are density and the ratio of unit transportation cost to treatment costs. • Regional recycling networks should have multiple layers. 7

On the cooperation of recycling operations Original Research Article Pages 349-358 Liang Lu, Xiangtong Qi, Zhixin Liu


8

Sustainable SC through the complete reprocessing of end-oflife products by manufacturers: A traditional versus social responsibility company perspective Original Research Article Pages 359-373 M. Faccio, A. Persona, F. Sgarbossa, G. Zanin


9

Optimal acquisition and production policy in a hybrid manufacturing/remanufacturing system with core acquisition at different quality levels Original Research Article Pages 374-382 Xiaoqiang Cai, Minghui Lai, Xiang Li, Yongjian Li, Xianyi Wu Show preview | PDF (755 K) | Supplementary content Recommended articles | Related reference work articles

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Strategic analysis of manufacturer-supplier partnerships: An ANP model for collaborative CO 2 reduction management


Pages 383-397 Sebastian Theißen, Stefan Spinler Show preview | PDF (880 K) | Recommended articles | Related reference work articles

11

The impact of consumer returns policies on consignment contracts with inventory control Original Research Article Pages 398-407 Wei Hu, Yongjian Li, Kannan Govindan


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A multi-criteria decision making model for advanced repairto-order and disassembly-to-order system Original Research Article Pages 408-419 Onder Ondemir, Surendra M. Gupta Show preview | PDF (794 K) | Supplementary content Recommended articles | Related reference work articles

13

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Evaluating green supplier development programs with a grey-analytical network process-based methodology Original Research Article

Pages 420-431 Yijie Dou, Qinghua Zhu, Joseph Sarkis Show preview | PDF (600 K) | Recommended articles | Related reference work articles


European Journal of Operational Research | Vol 233, Iss 2, Pgs 293-458, (1 March, 2014) | ScienceDirect.com 14

Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company


Pages 432-447 Devika Kannan, Ana Beatriz Lopes de Sousa Jabbour, Charbel José Chiappetta Jabbour Show preview | PDF (790 K) | Recommended articles | Related reference work articles

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Timing and eco(nomic) efficiency of climate-friendly investments in supply chains Original Research Article Pages 448-457 Elmar Lukas, Andreas Welling


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European Journal of Operational Research 233 (2014) 293–298

Contents lists available at ScienceDirect

European Journal of Operational Research journal homepage: www.elsevier.com/locate/ejor

Editorial

Eco-efficiency based green supply chain management: Current status and opportunities

1. Introduction and background The main theme of this special issue was derived from the first international workshop on ‘‘Eco-efficient based green supply chain management (EE-GSCM)’’ held at the Department of Business and Economics, University of Southern Denmark, Odense, Denmark. The theme of this workshop was eco-efficient based green supply chain management, eco-efficient based reverse and closed-loop supply chain management and carbon footprints in supply chains. Industries are striving hard to improve their sustainable development through many strategies such as environmental management systems, green and lean manufacturing, eco-effectiveness and efficiency to maintain their place in today’s competitive environment. Among these strategies, eco-efficiency, a tool of sustainable development, gained considerable attention among researchers and practitioners due to its high momentous benefits over a firm’s operational performance. While many definitions exist to explain the concept of eco-efficiency, the most cited definition was provided by the World Business Council for Sustainable Development (WBCSD) in 1992 as ‘‘eco-efficiency is achieved by the delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life-cycle to a level at least in line with the earth’s estimated carrying capacity’’ Schmidheiny (1992). In short, eco-efficiency combines both economic and environmental demands. Eco-efficiency is used to identify a set of solutions that do not increase the level of environmental damage unless costs also increase (Neto, Walther, Bloemhof, Van Nunen, & Spengler, 2009). The simplicity of ecoefficiency led it to spread worldwide and to enjoy widespread acceptance by enterprises who used this concept to support their decisions, production strategies, and investments striving for sustainable development (Wursthorn, Poganietz., & Schebek, 2011). Due to its widespread acceptance, eco-efficiency became a popular mechanism by which to examine policy strategies and their possible outcomes (English, Castellucci, & Mynors, 2006; Wursthorn et al., 2011). Eco-efficiency (EE) has been applied successfully by researchers in many fields such as manufacturing, paramedical, management, operations, and others to improve sustainability. More recently, eco-efficiency has been used in the field of supply chain management. While supply chains have been extended through lean and green initiatives, there is still a need to integrate eco-efficiency in supply chains in order to balance and to focus on both economic and environmental aspects. Supply chains are motivated by global trends and seek to achieve sustainable profitability by offering environmentally sound products and practices 0377-2217/$ - see front matter Ó 2013 Elsevier B.V. All rights reserved. http://dx.doi.org/10.1016/j.ejor.2013.10.058

(Solvang, 2008). While eco-efficiency is still subject to debate in regard to supply chains, it stands as a viable research pursuit. We explore here some of the existing literature on eco-efficiency relevant to our special issue. We categorized the literature into three sections: general (which consists of literature review, empirical surveys, etc.), tools used and fields of application (Table 1), and supply chain management (Table 2). Honkasalo, Rodhe, and Dalhammar (2005) made an empirical analysis to explore the IPPC directive in terms of driving EE using a case study based on British, Finnish, and Swedish dairy industries. Burritt and Saka (2006) studied the linkage of environmental management accounting and EE measurement using environmental management accounting (EMA) and EE indicators for a Japanese case study. Erkko, Melanen, and Mickwitz (2005) investigated the concept of EE using an empirical study conducted in a Finnish industry. Côté, Booth, and Louis (2006) identified that there is a need to propose new EE indicators for micro and small businesses through an empirical study and literature survey in Canada. Berkel (2007a, 2007b) reviewed the EE related concepts in primary metal production industry with five prevention practices and five resource productivity themes. Dahlström and Ekins (2007) presented the value chain analysis (VCA) to interpolate the economic and environmental dimensions of the aluminum industry in the UK. Prasad and Pagan (2007) identified the current status of EE by investigating a project named ‘Queensland food eco-efficiency.’ Fernández-Viñé, Gómez-Navarro, and Capuz-Rizo (2010) executed their study in three stages: review with benchmarking, surveys, and interviews. Halkos and Tzeremes (2013) addressed the economic growth and environmental efficiency of UK regions and they plotted the relationship between the regions and their environmental inefficiencies through a Conditional Directional distance function. Based on the above analysis, it is clear that many works exist in the focus areas of supply chains and other manufacturing and industry concerns. Despite the proliferation of research, no study addresses issues such as an eco-efficiency-based green supply chain, reverse supply chain, closed loop supply chain, and carbon footprint-based supply chain. The special issue (SI) had over 95 submissions, and after a rigorous review and revision process, 13 articles were selected for publication. These articles address the topics previously mentioned and seek to bridge gaps in the literature on eco-efficiency in supply chains. Here, we provide a short review of each paper selected for this special issue, highlighting its major contribution, the tool used, and the industry represented. The first paper in this SI, ‘‘Quantitative models for sustainable supply chain management: developments and directions’’ (Brandenburg,

294

Table 1 Eco-efficiency based literatures categorized by focus and tools used. Tools/methodology useda

Author

Problem addressed

Field of application

DEA

Dyckhoff and Allen (2001) Sarkis and Cordeiro (2001)

Extended the generalized DEA model for evaluating the eco- efficiency (EE) Investigated the relationship between the pollution prevention and end-of-pipe efficiencies using data collected from 482 U.S. firms during 1992 Tried to measure the technical efficiency and EE as an indicator and combined these indicators to decrease the pollutants in 24 power plants in Europe Proposed six DEA models to check the EE of the Chinese coal-fired power plants Computed the wide range of EE indicators and validated with the Spanish olive growing farms

General General

Checked whether the innovation in organizational practices improve the eco-efficiency with the case of 437 largest fossil fuels electricity generating plants Attempted to prove that the remanufacturing practices are more eco-efficient for a Xerox photocopier remanufacturing case Conducted a research to improve the EE

Power plant

Korhonen and Luptacik (2004)

LCA

Kerr and Ryan (2001) Seppälä et al. (2002)

EE indicators

LP

Snapshot graph and EE indicators Re and De linking evaluation MFEFP

Park, Tahara, Jeong, and Lee (2006) Breedveld, Timellini, Casoni, Fregni, and Busani (2007) Bidoki and Wittlinger (2010) LaRosa et al. (2013) Maxime, Marcotte, and Arcand (2006)

Compared four decision making methods under both environmental and economic aspects of end-of-life washing machine Evaluated the environmental impact and EE of the fabric filter

Mickwitz, Melanen, Rosenström, and Seppälä (2006) Aoe (2007) Salmi (2007)

Proposed and explained the EE indicators using a Kymenlaakso case study

Kharel and Charmondusit (2008) Klang, Vikman, and Brattebø (2008) Park and Behera (2013) Park and Tahara (2008) Simic and Dimitrijevic (2012) Charmondusit and Keartpakpraek (2011)

EIO-LCA, DEA and LP

Wang, Liu, Hansson, Zhang, and Wang (2011) Cerutti, Beccaro, Bagliani, Donno, and Bounous (2013) Egilmez, Kucukvar, and Tatari (2013)

Delphi method RELPM

Fernández-Viñé et al. (2013) Simic and Dimitrijevic (2013)

Identified the best EE based PVC coating agent Explored the EE of the new material (usage of hemp mats instead of glass fiber in composite material) Addressed the environmental issues in Canadian food and beverage industry using a new eco-efficiency indicator

Proposed EE indicator and provide the relationship between the functions of EE and eco design Integrated the complex utilization production model in mining sectors to maintain the waste management to increase the EE Investigated the eco-efficiency of iron rod industry in Nepal through quantitative analysis Measured the sustainability in waste management by combining the EE indicator with environmental indicator Proposed the EE indicators to evaluate the eco-efficiency of seven industrial symbiosis networks (ISN) Identified the key eco design issues with the assistance of producer-based EE and consumer-based EE Proposed a model to improve the EE and profitability of the vehicle recycling factories under the EU legislative specifically on production planning Evaluated the EE of the petroleum and petrochemical group Explored the Shandong Province’s pulp and paper industry EE trend from 2001 to 2008 Examined the sustainability and EE of food production in Northern Italy using the footprint analysis In order to increase the EE, sustainability was measured among U.S. manufacturing sectors and the results compared from various industries Reviewed the tools which stimulate the EE practices in SME’s under the pressure of public administration in Venezuela Proposed a methodology to reduce the landfill of end-of-life vehicles under the consideration of risk and economical aspects

Power plant Olive farms

Re-Manufacturing Finnish metal industry Decision making Ceramic tile industry Decision making Decision making Food and beverage Industry Kymenlaakso case study EEE products Waste management Iron rod industry Waste management ISN Eco design Industry Petroleum Pulp and paper industry Fruit production Manufacturing SME’s in Venezuela End of life vehicles

a DEA – data envelopment analysis; LCA – life cycle analysis; LP – linear programming; MFEFP – multi functional ecological foot print; EIO-LCA – economic input output-life cycle analysis; RELPM – risk explicit linear programming method.

Editorial / European Journal of Operational Research 233 (2014) 293–298

Yang and Pollitt (2009) Picazo-Tadeo, Beltrán-Esteve, and GómezLimón (2012) Sarkis and Cordeiro (2012)

Power plant

Table 2 ‘‘Eco-efficiency in supply chain’’ based literatures. Problem description

Tool/solution methodologya

Field of application

Mosovsky, Dickinson, and Morabito (2000) Berkel (2002) Narayanaswamy et al. (2005) English et al. (2006)

Focuses on continuous improvement in EE using EcoPro along with resource productivity, sustainability and competitive advantage

LCA

Manufacturing

Explored the significant usage of LCA in EE evaluation with an illustration from Queensland wheat starch industry Evaluated the EE of agribusiness processes such as: wheat to bread, barley to beer, and canola to cooking oil Explored the EE of cold roll production, in which they focus the mid-way value adding chain to ensure that they are sustainable

LCA LCA Case study

Michelsen, Fet, and Dahlsrud (2006) Solvang (2008)

Utilized nine EE indicators proposed by WBCSD to measure the EE of extended SC

EE indicators

Attempted to increase the continuous improvement of eco- efficiency in supply chains using the holistic green approach

Holistic green approach

Ji (2009) Neto et al. (2009)

Eco SC model Multi-objective LP

Michelsen and Fet (2010)

Analyzed the disruption risk and ecology in SCs with a case study of Chinese industries Proposed a two-phased heuristic to obtain a good approximation for efficient frontier (EF) without enumerating all extreme efficient solutions and to obtain a good visual representation of the EF Discussed the way for the improvement of EE in SCM

Agribusiness Agribusiness Cold roll production Furniture production Waste management Trading Trading

Langella and Zanoni (2011)

Investigates the Pareto-efficient frontier which provides the best options to the distribution managers to maintain their EE

Zhu, Geng, and Lai (2011)

Investigate the relationship between the environmental supply chain and circular economy with the aid of empirical sample collected from 396 Chinese manufacturers Integrated EE and eco-effectiveness to provide the comparison between the lean, green, sustainable, eco-efficient and eco- effectiveness supply chain Validates the EE of the food industries with suggestions to improve its EE in extended SC

Korol et al. (2012) Pimenta, Gouvinhas, and Evans (2012) Li and Hanafi (2013) Tseng, Tan, Lim, Lin, and Geng (2013) Wang, Zhu, and Lu (2013)

Optimized the transportation planning to increase the EE using an illustration from UK food SC Benchmarked the EE in green supply chain under uncertainty with the aid of smart phone manufacturer Investigated the optimal material flow allocation and network design to reduce the carbon and increase product value to achieve this Pareto frontier, which are illustrated with the refrigerator industry

Eco indicators and empirical analysis Nonlinear mathematical programming Empirical and Hierarchy Regression Analysis Literature survey and Empirical study Product LCM and EE Multi-modal transportation planning Fuzzy set theory combined with TODIM Multi-objective mixed integral programming

Furniture production Trading Manufacturing General Food production Food SC Electronic production Manufacturing


Author

a DEA – data envelopment analysis; LCA – life cycle analysis; LP – linear programming; MFEFP – multi functional ecological foot print; EIO-LCA – economic input output-life cycle analysis; RELPM – risk explicit linear programming method.

295

296


Govindan, Sarkis, & Seuring, 2013) provides an overview of quantitative models in sustainable supply chain management. The authors reviewed 134 papers and found that most focus on multiple criteria decision making and that significantly fewer papers analyze the sustainable supply chain through mathematical models. Accordingly, this paper serves to establish the developments and directions for future research in the field of sustainable supply chain management with the assistance of two decades’ worth of research in quantitative and formal models in forward supply chains. Next, ‘‘Alliance or no alliance—bargaining power in competing reverse supply chains’’ (Sheu & Gao, 2013) analyzes the effects of bargaining in reverse logistics and explores how such bargaining affects negotiations between manufacturers and reverse logistics providers. In this paper, an asymmetric Nash bargaining game is introduced to manage two scenarios, a reverse logistics provider alliance and a no reverse logistics provider alliance. The study indicates some special contributions and implications in terms of bargaining in reverse logistics. The next paper, ‘‘Reverse supply chain coordination by revenue sharing contract: A case for the personal computers industry’’ (Govindan & Popiuc, 2013) explores the significant effect of recycling in supply chains from each and every actor which includes all participants’ perspectives. Using analytical models, they analyzed coordination contracts of two- and three-echelon reverse supply chains that are applied in the PC industry. Their study demonstrates that the revenue sharing contract increases economic profit in reverse logistics and provides some interesting managerial implications. The fourth paper in this SI, ‘‘Determining optimal resource recycling boundary at regional level: A case study on Tokyo Metropolitan Area in Japan’’ (Chen, Fujita, Hayashi, Kato, & Geng, 2013) proposes an optimization model for identifying the optimal recycling boundary, a method tested in the Tokyo Metropolitan Region (TMR) concerned with the recycling of plastic waste. The results provide policy implications on waste collection and recycling planning. ‘‘On the cooperation of recycling operations’’ (Lu, Qi, & Liu, 2013) considers two major issues: the inefficiency of small scale and developing countries’ recycling efforts, and the inefficient selling of recycled parts by single firms in recycling sectors. The authors propose a cooperative game theory to clarify issues with recycling considerations such as cost, production, and rates. They also attempt to maximize the profit of recycling firms through cooperative operations which are explained in their numerical examples. In the paper ‘‘Sustainable SC through the complete reprocessing of end-of-life products by manufacturers: a traditional versus social responsibility company perspective’’ (Faccio, Persona, Sgarbossa, & Zanin, 2013) seeks to achieve sustainability in supply chains through reprocessing of end-of-life products with the aid of manufacturers. Their study explores methods to minimize total SC costs: first by a linear programming model and then by a parametric analysis. Both approaches evaluate and compare the economical sustainability of the proposed closed loop supply chain (CLSC) model versus the classical forward supply chain (FWSC) model. The seventh paper, ‘‘Optimal acquisition and production policy in a hybrid manufacturing/ remanufacturing system with core acquisition at different quality levels’’ (Cai, Lai, Li, Li, & Wu, 2013) analyzes acquisition and production planning problems for a hybrid manufacturing/remanufacturing system. They consider the two conditions of high quality and of low quality core acquisition. They derive and then analyze optimal dynamic acquisition pricing and production policies, and they explore the influences of system parameters in terms of acquisition prices and production quantities through a stochastic programming model.

Next, ‘‘Strategic analysis of manufacturer–supplier partnerships: An ANP model for collaborative CO2 reduction management’’ (Theißen & Spinler, 2013) proposes a methodology that uses an analytic network process to evaluate the supplier who best cooperates with the manufacturer in terms of CO2 reduction management. They illustrate the model in a fast moving consumer goods industry and identify the factors required for evaluating the supplier derived from real life scenarios. The study provides great implications for supplier selection in terms of sustainable development and it engages both manufacturer and supplier relations. In their paper, ‘‘The impact of consumer returns policies on consignment contracts with inventory control’’ (Hu, Li, & Govindan, 2013) investigates the consignment contract from both vendor and retailer perspectives. They consider a model where an upstream vendor has a consignment contract with a downstream retailer, and under this scenario, they compare the two different arrangements of retailer- and vendor-managed consignment inventory (RMCI/VMCI) programs. This paper also explores return policy impacts by considering a consigning contract without a return policy as a benchmark case. The tenth paper, ‘‘A multi-criteria decision making model for advanced repair-to-order and disassembly-to-order system’’ (Ondemir & Gupta, 2013) proposes a multi-criteria decision making model to integrate advanced repair-to-order and disassembly-to-order systems. The processing of each product that includes sensors, RFID tags, or sensor embedded products is examined to reach the optimum demand environment via disassembly, disposal, recycling, and storage. The paper ‘‘Evaluating green supplier development programs with a grey-analytical network process-based methodology’’ (Dou, Zhu, & Sarkis, 2013) develops a methodological framework to evaluate the influence of GSD programs on suppliers’ performance and involvement propensity. The proposed framework was validated with the case of a leading manufacturer in China’s pivot irrigation equipment industry. ‘‘Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company’’ (Kannan, Jabbour, & Jabbour, 2013) evaluates suppliers based on GSCM using hybrid MCDM and fuzzy TOPSIS. Suppliers are ranked based on their scores in GSCM practices. Then, the framework was validated with a Brazilian company and compared with other rankings obtained from geometric and graded means aided by Spearman rank and followed by sensitivity analysis. The final paper, ‘‘Timing and eco(nomic) efficiency of climatefriendly investments in supply chains’’ (Lukas & Welling, 2013) provides an overview of bargaining in the implementation of a carbon dioxide (CO2) saving investment project. They propose a sequence model to explore bargaining negotiations between the parties in the project; their model proves that the outcome of bargaining leads to neither economic nor ecological profit. They conclude that an increase in the number of links in a supply chain results in a decrease of eco-efficiencies.

Acknowledgments We would like to thank all the authors who have submitted papers for the special issue and the reviewers who have reviewed manuscripts in a timely manner. Special thanks to the Editors of EJOR, in particular Professor Roman Slowinski and Professor Robert Dyson, and to journal manager Rosie Stewart for their constant support right from the beginning until the editorial process has been approved. Special thanks to the previous journal manager Jacqueline Turner who helped us a lot at the beginning of the special issue.


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Kannan Govindan Department of Business and Economics, University of Southern Denmark, Odense, Denmark ⇑ Fax: +45 6550 3237. E-mail address: [email protected] Joseph Sarkis Department of Management, School of Business, Worcester Polytechnic Institute, Worcester, MA, USA Charbel José Chiappetta Jabbour UNESP – The Sao Paulo State University, Av. Eng. Edmundo C. Coube, 14-01, Bauru-SP, Brazil Qinghua Zhu Faculty of Management and Economics, Dalian University of Technology, Dalian, Liaoning Province 116024, PR China Yong Geng Key Lab on Pollution Ecology and Environmental Engineering, Institute of Applied Ecology, Chinese Academy of Sciences, Shenyang, China