Sustainable Supply Chains

Sustainable Supply Chains

International Series in Operations Research & Management Science Volume 174 Series Editor: Frederick S. Hillier Stanford University, CA, USA Special Editorial Consultant: Camille C. Price Stephen F. Austin State University, TX, USA For further volumes: http://www.springer.com/series/6161

Tonya Boone Vaidyanathan Jayaraman Ram Ganeshan Editors Sustainable Supply Chains Models, Methods, and Public Policy Implications 2123

Editors Tonya Boone Ph.D. Mason School of Business College of William and Mary Williamsburg, Virginia USA Vaidyanathan Jayaraman Ph.D. Department of Management School of Business Administration University of Miami Coral Gables, Florida USA Ram Ganeshan Ph.D. Mason School of Business College of William and Mary Williamsburg, Virginia USA ISSN 0884-8289 ISBN 978-1-4419-6104-4 ISBN 978-1-4419-6105-1 (e-book) DOI 10.1007/978-1-4419-6105-1 Springer New York Dordrecht Heidelberg London Library of Congress Control Number: 2012939732 Springer Science+Business Media New York 2012 All rights reserved. This work may not be translated or copied in whole or in part without the written permission of the publisher (Springer Science+Business Media, LLC, 233 Spring Street, New York, NY 10013, USA), except for brief excerpts in connection with reviews or scholarly analysis. Use in connection with any form of information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed is forbidden. The use in this publication of trade names, trademarks, service marks, and similar terms, even if they are not identified as such, is not to be taken as an expression of opinion as to whether or not they are subject to proprietary rights. Printed on acid-free paper Springer is part of Springer Science+Business Media (www.springer.com)

Acknowledgements The editors would like to extend their heartfelt gratitude to the Mason School of Business, College of William & Mary; and the School of Business, University of Miami, for supporting their research endeavors in the writing of this book. Tonya Boone and Ram Ganeshan would especially like to thank Dean Ajit Rangnekar, Senior Associate Dean Sanjay Kallapur, colleagues and friends at the Indian School of Business in Hyderabad for their support during their sabbatical when much of the finishing touches to this book were completed. All the three editors are extremely grateful to their families for inspiring them with wonderful ideas on sustainability. We are grateful to our editor Neil Levine and assistant editor Matthew Amboy for sheparding this book through the publication process. Finally, we would also like to thank you, our readers, for reading and using this book. We hope it contributes to all the efforts that you ve undertaken to improve the sustainable performance of companies and their supply chains throughout the world. v

Contents 1 Editorial: Sustainable Supply Chains... 1 Tonya Boone, Vaidyanathan Jayaraman and Ram Ganeshan 2 By the Numbers: A Visual Chronicle of Carbon Dioxide Emissions... 9 Tonya Boone and Ram Ganeshan 3 Sustainable Supply Chains for Bio-Based Fuels and Chemicals... 29 Joseph B. Powell, Paul M. Ayoub, Sachin Kapila, Alex P. R. Nevill and Grahame Y. Buss 4 Organizing for Sustainability: Exploratory Analysis of the Healthcare Industry... 37 Tonya Boone 5 Supply Chain Network Design of a Sustainable Blood Banking System... 49 Anna Nagurney and Amir H. Masoumi 6 From a Caged Tiger to a Sauntering Elephant: Sustainability as a Driver for Profit and Innovation in Indian IT Companies... 73 Vaidyanathan Jayaraman, Mandar Dattatray Malshe and Ajay Anandnarayan 7 Development of a LEED Certified Building A Case Study... 97 Rex M. Holmlin 8 A Primer on E-Waste... 107 Tonya Boone and Ram Ganeshan 9 Product Take-Back Legislation and Its Impact on Recycling and Remanufacturing Industries... 129 Gökçe Esenduran, Eda Kemahlıoğlu-Ziya and Jayashankar M. Swaminathan vii

viii Contents 10 Product Disposition Decisions on Closed-Loop Supply Chains... 149 Gilvan C. Souza 11 Product Labeling, Consumer Willingness to Pay, and the Supply Chain... 165 Robert L. Hicks 12 Carbon Foot Print of Products Supply Chain Approach... 175 Tonya Boone, Ram Ganeshan and Vaidyanathan Jayaraman 13 Making the Business Case for Sustainability Related Investments Through a Single Financial Metric... 193 Mark Ferguson 14 Incorporating Life-Cycle Economic and Environmental Factors in Managerial Decision-Making... 201 Ravi Subramanian 15 Performance Measurement and Evaluation for Sustainable Supply Chains using Rough Set and Data Envelopment Analysis... 223 Chunguang Bai and Joseph Sarkis Index... 243

List of Contributors Ajay Anandnarayan Business Consultant, Cognizant Business Consulting, Chennai, India Paul M. Ayoub Shell Alternative Energies, One Shell Plaza, Houston, TX 77002, USA Chunguang Bai School of Management Science and Engineering, Dongbei University of Finance and Economics, 217 Jianshan Street, 116025 Dalian, People s Republic of China Grahame Y. Buss Shell Global Solutions, London, UK Tonya Boone Mason School of Business, College of William and Mary, 23185 Williamsburg, VA, USA Gökçe Esenduran Fisher College of Business, The Ohio State University, 2100 Neil Avenue, Columbus 43210, OH, USA Mark Ferguson Moore School of Business, University of South Carolina, 1705 College Street, Columbia, SC 29208, USA Ram Ganeshan Mason School of Business, College of William and Mary, 23185 Williamsburg, VA, USA Robert L. Hicks 129 Morton Hall, Department of Economics, The College of William and Mary, Williamsburg 23185, VA, USA Rex Holmlin Mason School of Business, The College of William and Mary, 101 Ukrop Way,Williamsburg, VA 23185, USA Vaidyanathan Jayaraman Department of Management, School of Business Administration, University of Miami, 33124 Coral Gables, FL, USA Sachin Kapila Shell Global Solutions, London, UK Eda Kemahlioğlu-Ziya Kenan-Flagler Business School, University of North Carolina at Chapel Hill, CB Number 3490, Chapel Hill 27599, NC, USA ix

x List of Contributors Mandar Dattatray Malshe Business Analyst (Consumer Packaged Goods), Wipro Technologies, Chennai, India Amir H. Masoumi Department of Finance and Operations Management, Isenberg School of Management, University of Massachusetts, 01003 Amherst, MA, USA Anna Nagurney Department of Finance and Operations Management, Isenberg School of Management, University of Massachusetts, 01003 Amherst, MA, USA Alex P. R. Nevill Shell Alternative Energies, Shell International Petroleum Company Ltd, London, UK Joseph B. Powell Shell Projects and Technology, Westhollow Technology Center, Houston, TX 77082, USA Joseph Sarkis Graduate School of Management, Clark University, 950 Main Street, 01610-1477, Worcester, MA, USA Gilvan C. Souza Kelley School of Business, Indiana University, 47405 Bloomington, IN, USA Ravi Subramanian College of Management, Georgia Institute of Technology, Atlanta, GA 30308, USA Jayashankar M. Swaminathan Kenan-Flagler Business School, University of North Carolina at Chapel Hill, CB Number 3490, Chapel Hill 27599, NC, USA