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Supply Chains and the Environment

Supply Chains and the Environment. Fuminori Toyasaki MKIDS Mini-Workshop September 10, 2003. The Virtual Center for Supernetworks. Change of environment problem characteristics. Environment problems. Global Unspecific industries Large uncertainty Future problem. Local

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Supply Chains and the Environment

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  1. Supply Chainsand theEnvironment Fuminori Toyasaki MKIDS Mini-Workshop September 10, 2003 The Virtual Center for Supernetworks

  2. Change of environment problem characteristics Environment problems Global Unspecific industries Large uncertainty Future problem Local Specific industries Small uncertainty Present problem

  3. From Supply Chains to Green Logistics * Legislation Pressure * Consumer Pressure Supply Chain + Environmental = Green Logistics criteria

  4. My Research Areas * Supply chain modeling with emission minimization criterion * Supply chain modeling with E-cycling * Global supply chain with transboundary pollutions (future)

  5. Supply Chain Supernetworks and Environmental Criteria Anna Nagurney and Fuminori Toyasaki Appears in Transportation Research: Transportation and the Environment

  6. Manufacturers i m 1 1 j Retailers n 1 k i Demand Markets

  7. Assumptions of this model • Each manufactures and retailers 1. Maximizes its profit 2. Minimizes its emissions. • Cournot-Nash oligopoly market.

  8. A manufacturer’s muliticriteria decision-making problem Maximize Subject to

  9. The optimality condition of the manufacturers

  10. A retailer’s multicriteria decision-making problem Maximize Subject to

  11. The multicriteria equilibrium conditions for demand market k For allretailers and modes For allmanufactures

  12. Variational Inequality Formulation

  13. The Dynamics • Describe the manufactures’, retailers’ and consumers’ product and price adjustment. • Formulate the dynamic adjust process as a projected dynamical system.

  14. Demand market price dynamics

  15. Dynamics between the retailers and the demand markets

  16. The projected dynamical system The dynamic model of the supply chain supernetwrok and environmental criteria can be formulated as follows: is the projection operator of onto is the initial point

  17. Stationary equilibrium points Theorem The set of stationary points coincides with the set of equilibrium points. Proof. See Dupuis and Nagurney (1993). .

  18. Numerical Examples 1 2 Manufactures Retailers 1 2 Demand Markets 1 2

  19. Change of environment criteria

  20. Increase in weights on environment criteria

  21. Summary • First rigorous mathematical supernetwork model which deals with multicriteria decision makers, include environmental one. • Developed both a static and a dynamic model. • Evaluated the equilibrium solutions as we changed the weight of the environmental criteria.

  22. Electronic Waste Management and Recycling: A Multitiered Network Equilibrium Framework for E-Cycling Anna Nagunrey and Fuminori Toyasaki

  23. 63 million PC will be obsolete in 2003 in the U.S. About 10 million waste electric products are dumped per year in Japan. * Electronic wastes contain not only hazardous materials, but also precious ones. The Home Appliances Recycling Law in Japan (2001) Waste from Electrical and Electronic Equipment Directive (WEEE) in EU (2008) Movement of E-Cycling

  24. Source of Electronic Waste 1 h r Landfill m m+1 1 i Recyclers Processors n n+1 Landfill 1 j O+1 Landfill 1 k o Demand Markets

  25. Assumptions of the model • The sources minimize their costs • The recyclers and the processors maximize their profits, respectively. • Cournot-Nash oligopoly market.

  26. The behavior of the sources Minimize Subject to :

  27. Variational Inequality Formulation of the sources

  28. Recyclers’ behavior Maximize Subject to

  29. Processors’ behavior Maximize Subject to

  30. The demand markets

  31. Variational Inequality Formulation

  32. Numerical Examples Sources 2 1 Recyclers Landfill r 1 2 3 Processors Landfill 1 2 3 Landfill Demand Markets 1 2 3

  33. Change of conversion rates

  34. High demand and low demand

  35. Summary • Proposed a rigorous E-cycling mathematical model * the endogenous equilibrium prices and material shipments between tiers. • Decision makers’ behavior in a bottom tier influences those in a upper tier. * influence of a bottom tier’s conversion rate. * influence of low demand. Sustainable E-cycling system

  36. Global Supply Chain Networksand Transboundary Emisssion Risk

  37. Economic Globalization and Transboundary Pollution Transboundary pollution (pollution across boundaries) Carbon dioxides, methane, Chlorofluorocarbons (CFCs), Sulphur dioxide, Nitrogen oxides and so on Economics globalization may exacerbate transboundary pollutions (Coperand (1995), Benarroch (2001) ) * Increase in volume of traffic * Relaxation of environment standards for helping domestic firms

  38. Risks of transboundary pollution * No clear relationship between how much a country emits and how much is deposited there. * Hard to predict how much pollution travels from a country according to the natural conditions.

  39. Thank You !!

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