Atalay Atasu. Editor. Environmental^ Responsible. Supply Chains. Springer

Transcription

1 Atalay Atasu Editor Environmental^ Responsible Supply Chains Springer

2 Contents Foreword Preface Acknowledgements About the Editor Contributors v vii xi xiii xv Part I Profit-Driven Environmental Responsibility in Supply Chains: Motives 1 Consumer Markets in Closed-Loop Supply Chains 3 James D. Abbey and V. Daniel R. Guide Jr. 1.1 Introduction to Closed-Loop Supply Chains for Consumer Products Closed-Loop Supply Chain Processes and Flows Understanding Remanufactured Product Markets Putting the Process and Market Together State of Research in Closed-Loop Supply Chains Product Reacquisition and the Marginal Value of Time Returns Management Design for Reuse and Remanufacturing The Market for Remanufactured Consumer Products Matching Supply and Consumer Demand in Closed-Loop Supply Chains 10 xix

3 XX 1.3 DelvingDeeper:Understandingtbe Fundamental Drivers of Remanufactured Products Preferences Fundamental Studies into Remanufactured Product Perceptions ; Combining Theory and Fundamental Studies Advancing the Experimentai Design: Combining Effects to Isolate Consumer Segments 1.4 Continuing Needs for Research and the Environment 1.5 Concluding Remarks 2 Market Behavior Towards Remanufactured Products Necati Tereyagoglu Unobservable Remanufacturing Processes 2.3 Factors Inüuencing the Valuation of Remanufactured Products 2.4 Buyer Safeguards Influencing Market Behavior Toward Remanufactured Products 2.5 Impact of Remanufactured Products on New Product Valuations 2.6 Conclusions Contents 3 Assessing Consumers' Valuations of Socially Responsible Products with Controlled Experiments 29 Yanchong Zheng. Tim Kraft, and Leön Valdes 3.1 Introduction Marketing and Economic Studies on Consumers' Valuations of Sustainability Supply Chain Transparency and Social Responsibility: A Controlled Laboratory Experiment Experimentai Design Experimentai Results Managerial Implications Future Directions Conclusion 4g AQ Part II Profit-Driven Environmental Responsibility in Supply Chains: Opportunities By-Product Synergy: Productively Using Waste in Joint Production Operations ro Deishin Lee 4.1 Introduction 4.2 Waste _

4 Contents %xi 4.3 By-Product Synergy By-Product Synergy in a Manufacturing Setting By-Product Synergy in a Service Setting By-Product Synergy in a Retail Setting Rethinking the Way We Make Things Conclusion Responsible Sourcing 71 Vishai V. Agrawal and Deisliin Lee 5.1 Introduction Challenges of Responsible Sourcing Mnltidimensional Sourcing Criteria Multilateral Coordination Contracting Issues Additional Stakeholders Mechanisins for Responsible Sourcing Mnltidimensional Sourcing Criteria Multilateral Coordination Contracting Issues Additional Stakeholders Conclusion The Impact of Supply Chain Structures on Corporate Social Responsibility 87 Paolo Letizia 6.1 Introduction The Theory of Property Rights (PR) The Model A Simple Example Business Applications Horizontal Alliances: The Gase of Poultry Farmers in the Netherlands Forward Integration: The Oase of FrieslandCampina Backward Integration: The Case of Starbucks Corporation Conclusions 105 Appendix 106 The Use of the Shaplev Value in Cooperative Game Theory

5 xxii Contents 7 Servicizing in Supply Chams and Environmental ^ Implications Vishai V. Agrawal and Ioannis Beilos Introduction - Operational Taxonoray of Servicizing Business Models no The Green Potential of Servicizing(?) ^ Pay-per-Use Pricing j Resource Pooling Product Design Product Stewardship Rebound Effect The Challenges of Servicizing the Supply Chain Conclusions ^ Part III Profit-Driven Environmental Responsibility in Supply Chains: Operational Perspectives 8 Bike-Share Systems 127 Ashish Kabra, Elena Belavina, and Kar an Girotra 8.1 Introduction Model Single-Station Analysis Empirical Analysis Data Description Empirical Model Results Implications Effect of Demand Asymmetry Effect of Travel Time Between Stations Effect of Uncertainty of Demand Nuniber of Docks Station Locations Bike Availability Balancing the Demands of Accessibility and Availability _ Conclusion and Future Directions 142 ^2 9 Biofuel Supply Chain Network Design and Operations 143 Michael K. Lira and Yanfeng Ouyang 9.1 Introduction 9.2 Biofuel Supply Chain Stages of Biofuel Supply Chain Logistics ' ' ^ Supply and Demand * 150

6 Contents %xiii 9.3 Models of Biofuel Network Design and Operations Logistics Network Transportation and Inventory Management Uncertainties Land Use Change and Competition Environmental and Social Impacts Governmental Policies Conclusiou Capacity Investment Decisions in Renewable Energy Technologies 163 Mark E. Eerguson. Shanshan Hu, Gilvan C. Souza, and Wenbin Wang 10.1 Introduction Investment Decision of a Nonrenewable Energy Producing Technology Conversion to a Single-Period Problem Example Application: Decision of Generator Capacity at a Bank Brauch Investment of Energy-Producing Renewable Technology Conversion to a Single-Period Problem Application 2: Solar Photovoltaic (PV) System in a Bank Brauch Conclusions Part IV Regulation-Driven Environmental Responsibility in Supply Chains: Motives and Opportunities 11 Owls, Sheep and Dodos: Coping with Environmental Legislation 179 Atalay Atasu, Luk N. Van Wassenhove, and Douglas Webber 11.1 Introduction The Times they are A-Changing: Trends in Environmental and e-waste Legislation A Strong Wind or a Perfect Storm? How Exposure to Environmental Legislation Risks Varies Owls. Sheep. and Dodos: Some Firms are Politically More Competent than Others Dodos Sheep I Owls What Makes a Firm an Owl? Conclusions

7 XXIV Contents - David F. Drake and Robin L. Just - ^ * Production Technology and Environmental Impact ' n 12.3 Regulatory Dimensions: Expected Cost of Nonoompliauco ^ and Asymmetry ' Expected Cost of Noncompliance ^ Regulatory Asymmetry ^ 12.4 Examplesof Environmental Regulation Outcomes 2U Expected Cost of Noncompliance is Too Low Expected Cost of Noncompliance is Too High Expected Cost of Noncompliance is On-Target Decision Framework: Ignore, Avoid, Abandon, and Embrace ^ Decisions Under Compliance-Based Regulation Decisions Under "Pay-to-Pollute" Regulation Strategie Disclosure of Social and Environmental Impacts in a Supply Chain 223 Basak Kalkanci, Erjie Ang, and Erica L. Plambeck 13.1 Introduction The Rationale for Mandatory Disclosure Model Formulation Experimental Results Greenhouse Gas Emissions Confiict Materials Analytical Results Conclusion 234 Appendix 236 Firms' Consumer Trust Ratings Under Different Scenarios Surveys for GHG Emissions and Confiict Minerais The Effect of EPR. on the Markets for Waste 241 GÖkge Esenduran and Atalay Atasu 14.1 Introduction Waste Markets Dynamics Waste Markets Challenges in EPR Implementations Competition Against Local Recyclers Global Competition for Waste 250

8 Contents XXV Competition Against Third-Parties and Secondary Markets Conclusions 254 R.eferences 255 Part V Regulation-Driven Environmental Responsibility in Supply Chains: Operational Perspectives 15 Emissions Allocation Problems in Climate Change Policies 261 Nur Sunar 15.1 Overview of the Chapter Background on Climate Change Policies in the World and Social Cost of Carbon State of the Climate Change Policies in the World Measuring the Social Impact of Emissions: Social Cost of Carbon Emissions Allocation in Co-production Systems Emission Allocation Among Supply Chain Players Emission Allowance Allocation in Cap-and-Trade Markets Free Allowance Allocation in the EU ETS Why is Free Allowance Allocation Important? Emissions Allocation in the Context of Voluntary Actions to Improve Environmental Impact Summary and Concluding Remarks Variability in Emissions Cost: Implications for Facility Location, Production and Shipping 283 Özge iglegen, Erica L. Plambeck, and Terry A. Taylor 16.1 Introduction Model Formulation Analytical Results The Impact of Instituting a Climate Policy The Impact of Variability in Emissions Cost Numerical Analvsis for the U.S. Southwest Cement Industry Conclusion 296 Appendix

9 xxvi Contents 17 Managing the Chemicals and Substances in Products and Supply Chains Tim Kraft, Özgen Karaer, and Kathryn Sharpe 17.1 Introduction Challenges to Chemicals Management in Supply Chains A Review of the Relevant Literature 17.4 GreenBlue and Material IQ Model Overview Buyer's Perspective GreenBlue's Perspective Model Summary 17.5 Future Research Directions 17.6 Conclusion Design Implications of Extended Producer Responsibility Legislation 339 Luyi Gui, Ximin (Natalie) Huang, Atalay Atasu, and L. Beril Toktay 18.1 Introduction An Overview of EPR Implementations A Benchmark Gase Trade-offs Between Design Alternatives Design Incentives Under Collective EPR Implementations'. The Impact of Market Competition Design Incentives Under Collective EPR Implementations: Cost Allocation and Network Effects Conclusion 356 Index