Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 Greening Suly Chin Mngemen Ri Mrkovis-Somogyi, Zolán Ngy, Ádám Török Budes Universiy of Technology nd Economics, Dermen of Trnsor Economics, H-1111 Budes, Berln Ljos u. 2. rsomogyi@kgzd.me.hu, ngyz@kgzd.me.hu, orok@kgzd.me.hu Asrc: The ls few decdes hve seen n increse in environmenl consciousness. More nd more eole re wre of he world s environmenl rolems such s glol wrming, oxic susnce usge nd he decrese of non-relenishle resources. Governmens hve relesed cmigns o romoe his rolem o eole. Severl logisic orgnizions resonded o his y lying green rinciles o heir comny, such s using environmenl friendly rw merils, reducing he usge of fossil sed ower nd using recycled ers for ckging. Green suly chin mngemen (GSCM) hs een emerging in he ls few yers. This ide covers every sge in he mnufcure from he firs o he ls sge of he life cycle, i.e. from roduc design o recycling. Trnsorion cnno e relced s i is r of he roducion chin. Socieies re horizonlly nd vericlly differenil. The mnower, he sock, he semifinished nd finished roducs mus e rnsored, hus he imornce of he rnsor secor is unquesionle. The urose of his er is o descrie he imornce of greening he suly chin. Keywords: greening he suly chin, environmenl imc 1. Inroducion - Trnsor logisics reled environmenl olluion In he ls wo or hree hundred yers here ws n exlosion in he develomen of indusril nd echnicl secor, which gve eole mulilied se of ools o encroch nure. The moorizion hs develoed so dynmiclly h he ir, soil, wer olluions re considerle o he mouns of ir, soil nd wer of Erh. The susinle develomen is develomen, where he ce of echnicl develomen, he siion of incresing suly nd he rw merils nd resources of Erh re oised so h he re of living nd ooruniies of he nex generions need no o e worse. Trnsorion cnno e relced ecuse i is he r of he suly chin. Socieies re horizonlly nd vericlly differenil. The mnower, he sock, he semi finished nd finished roducs mus e rnsored. The imornce of he rnsorion secor is indiced y he secor roducion which is 10% of he GDP of he Euroen Union nd more hn 10 million eole re working in his secor. One of he mos emhsized gols of he rnsor olicy of he Euroen Union is susinle moiliy. 367
Indusry Households Services Rod rnsor Ril rnsor Aviiion Werorne rnsor Averge emerure of Erh [ C] Averge concenrion of mosheric cron dioxide [m] Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 For his reson rnsorion sysems mus e develoed nd sndrdized, he effeciveness of rnsorion service mus e incresed, while he environmenl olluion mus e decresed or revened. Time series of verge emerure of Erh nd verge concenrion of mosheric crondioxid 20 18 16 14 12 Averge mosheric concenrion of crondioxide [m] Averge Erh emerure [ C] 300 280 260 240 10 220 8 200 6 180-396694 -340163-317401 -297116-263201 -244124-227840 -214138-175386 -128632-108954 -51159-2331 [yers] Figure 1. Normlised ime series of CO2 nd emerure efore humn imc [16] There is srong correlion eween mosheric CO2 concenrion nd he verge emerure of he Erh. (r=0,8657, Figure 1.) Nowdys wih he humn imc which is considerle o he size of he moshere, he relion cn e chnged. More hn he qurer of he ol emission of CO2 cused y he humniy is roduced y rod rnsor (Figure 2.). CO 2 emission cused y humniy 30,0% 25,0% 20,0% 15,0% 10,0% 5,0% 0,0% Figure 2. Trnsorion on he rod conriues o clime chnge [16] 368
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 There is common, socil will o roec he Erh nd he environmen nd he sme ime he connecion is srong eween he environmen nd he suly chins s hese ffec he environmen y emiing olluns nd greenhouse gses, u he environmen lso influences suly chins hrough he clime chnge. From his oin of view suly chins hve o ly mjor role in fulfilling he chllenge resened y he environmen, he sociey nd he economy. 2. Suly chin mngemen Suly Chin Mngemen includes mnging suly nd demnd, sourcing rw merils nd rs, mnufcuring nd ssemly, wrehousing nd invenory rcking, order enry nd order mngemen, disriuion cross ll chnnels, nd delivery o he cusomer. Suly chin mngemen hs emerged s he erm defining he inegrion of ll hese civiies ino semless rocess. Suly Chin is he inerreled collecion of rocesses nd ssocied resources h srs wih he cquiremen of rw meril nd exends o he delivery of end iems o he cusomer. I includes suliers, mnufcurers, logisics service roviders, wrehouses, disriuors, wholeslers nd ll oher eniies h led u o delivery o he finl cusomer. In more dvnced oerions i my exend o he cusomer of he immedie cusomer. A suly chin is he sysem of orgnizions, eole, echnology, civiies, informion nd resources involved in moving roduc or service from sulier o cusomer. Suly chin civiies rnsform nurl resources, rw merils nd comonens ino finished roduc h is delivered o he end cusomer (Figure 3.) [1]. Figure 3. An illusrion of comny's suly chin; he rrows snd for sulierrelionshi mngemen, inernl SCM nd cusomer-relionshi mngemen [2] In he 1980s, he erm Suly Chin Mngemen (SCM) ws develoed o exress he need o inegre he key usiness rocesses, from end user hrough originl suliers, originl suliers eing hose h rovide roducs, services nd informion h dd vlue for cusomers nd oher skeholders. The sic ide ehind he SCM is h comnies nd cororions involve hemselves in suly chin y exchnging informion regrding mrke flucuions nd roducion ciliies. If ll relevn 369
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 informion is ccessile o ny relevn comny, every comny in he suly chin hs he ossiiliy o nd cn seek o hel oimizing he enire suly chin rher hn suoimize sed on locl ineres. This will led o eer lnned overll roducion nd disriuion which cn cu coss nd give more rcive finl roduc leding o eer sles nd eer overll resuls for he comnies involved. Incororing SCM successfully leds o new kind of comeiion on he glol mrke where comeiion is no longer of he comny versus comny form u rher kes on suly chin versus suly chin form. The rimry ojecive of suly chin mngemen is o fulfill cusomer demnds hrough he mos efficien use of resources, including disriuion cciy, invenory nd lor. In heory, suly chin seeks o mch demnd wih suly nd do so wih he miniml invenory. Vrious secs of oimizing he suly chin include liising wih suliers o elimine olenecks; sourcing sregiclly o srike lnce eween lowes meril cos nd rnsorion, imlemening JIT (Jus In Time) echniques o oimize mnufcuring flow; minining he righ mix nd locion of fcories nd wrehouses o serve cusomer mrkes, nd using locion/llocion, vehicle rouing nlysis, dynmic rogrmming nd, of course, rdiionl logisics oimizion o mximize he efficiency of he disriuion side. 3. Imornce of GSCM As in ny emerging reserch re, he erly lierure focuses on he necessiy nd imornce of GSCM, defines he mening nd scoe of vrious erms nd suggess roches o exlore he re furher. Fundmenls of greening s comeiive iniiive re exlined in [3], [4]. Their sic resoning is h invesmens in greening cn e resource sving, wse elimining nd roduciviy imroving. Three roches in GSCM, nmely recive, rocive nd vlue-seeking, re suggesed [5], [6]. In he recive roch, comnies commi miniml resources o environmenl mngemen, sr lelling roducs h re recyclle nd use end of ieline iniiives o lower he environmenl imc of roducion. In he rocive roch, hey sr o re-em new environmenl lws y relizing modes resource commimen o iniie he recycling of roducs nd designing green roducs. In he vlue-seeking roch, comnies inegre environmenl civiies such s green urchsing nd ISO imlemenion s sregic iniiives ino heir usiness sregy. The ersecive hen chnges from greening s urden o greening s oenil source of comeiive dvnge [6]. Owen [7] nd Srkis [8] discuss environmenlly conscious mnufcuring. Friedmn [9], Guide nd Wssenhove [10] nd Gu [11] discuss he chnging role of he environmenl mnger. Inercions mong vrious skeholders on inegred GSCM nd dvnges h my ccrue o hem hve een descried y Gungor nd Gu [12]. A he end of he 1990s, inegring hese issues ino he minsrem ws idenified s he fuure reserch gend [13]. In sudy linking GSCM elemens nd erformnce mesuremen, Bemon [14] dvoces for he eslishmen nd imlemenion of new erformnce mesuremen sysems. He suggess h he rdiionl erformnce mesuremen srucure of he suly chin mus e exended o include mechnisms for roduc recovery (RL). 370
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 In ody s usiness world, he comeiion mong comnies is very high. To imress cusomers he comny needs o disinguish iself from ohers. Being environmenlly friendly is one wy o mke difference. Besides, when comeiors hve lredy doed GSCM, his us n exr ressure on he given comny. Therefore i is dvisele o imlemen GSCM indeendenly of wheher he comeiors hve lredy doed i or no. Figure 4. Chnge of he demnd curve [17] No only comeiors, u cusomers lso ly role in he comny s decision o do he GSCM. In mny cses i ws he cusomers who required secil remen or secil roducs. Consequenly he comny needed o mke chnges o sisfy hem nd kee hem s cusomers [15]. Prcicl uses of suly nd demnd nlysis re ofen cenred on he differen vriles h chnge equilirium rice nd quniy, reresened s shifs in he resecive curves (Figure 4). Comrive sics of such shif rces he effecs from he iniil equilirium o he new equilirium. In our cse he comny h uses GSCM cn hve gin on mrke comred o oher comnies. Th mens h we hd wned righ-wrd shif in demnd h increses oh equilirium rice nd quniy. When consumers increse he quniy demnded given rice, i is referred o s n increse in demnd. A ech rice oin, greer quniy is demnded, which cn e deiced s move from he iniil curve D1 o he new curve D2. In he digrm, his rises he equilirium rice from P1 o he higher P2. Mhemiclly he demnd funcion cn e descried s: x, s demnd funcion (1) 371
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 372 In he exmle ove, here hs een n increse in demnd which hs cused n increse in (equilirium) rice. A ech oin, greer moun is demnded (when here is shif from D1 o D2). Mhemiclly he suly funcion cn e descried s 1 y, s suly funcion (2) I is well known h mrke equilirium is when demnd x nd suly y re equl. For every ime eriod here is n equilirium h cn e descried wih ) ( 1 1 (3) Where: x, s demnd funcion 1 y, s suly funcion : rice in ime We rech he mrke equilirium when = -1. Therefore, we ge ˆ (4) nd he cul rice differs from he mrke equilirium rice y ˆ (5) Now he mrke equilirium cn e descried s: 1 1 (6)
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 Figure 5. Cyerneic model of mrke equilirium wih wo concurring comnies [17] Logisics re esimed o ccoun for 10-15% of he finl cos of finished roducs nd usinesses re incresingly seeking o cu coss y reducing fuel consumion nd ime sen in queues. Th is why he greening of logisics hs no only n environmenl dimension for comnies, u is lso quesion of efficiency. The worldwide demnd for Green Soluions increses he demnd for GSCM. I will increse he rice of roducs from P1 o P2 for hose firms which inves in i. References [1] Ngurney, A.: Suly Chin Nework Economics: Dynmics of Prices, Flows, nd Profis, Edwrd Elgr Pulishing (2006) [2] Chen, I.J., Pulrj, A.: Undersnding suly chin mngemen: criicl reserch nd heoreicl frmework, Inernionl Journl of Producion Reserch, Vol.42.No.1 (2004).131 [3] Porer, M.E., vn der Linde, C.: Green nd comeiive, Hrvrd Business Review, 73 (1995) [4] Porer, M.E., nd vn der Linde, C.: Towrd new conceion of he environmen comeiiveness relionshi, Journl of Economic Persecives, 9 (1995). 97-118 [5] Koicki, R.J., Legg, L., Berg, L.M.J., Ds, V., Mggioni, C.: Reuse nd Recycling: Reverse Logisics Ooruniies, Ok Brook, IL: Council of Logisics Mngemen (1993) [6] Vn Hoek, R.I.: From reversed logisics o green suly chins, Suly Chin Mngemen, 4 (1999). 129-135 [7] Owen, J.V.: Environmenlly conscious mnufcuring, Mnufcuring Engineering, 10 (1993). 44-55 373
Ac Technic Jurinensis Series Logisic Vol. 2, No.3, 2009 [8] Srkis, J.: Suly chin mngemen nd environmenlly conscious design nd mnufcuring, Inernionl Journl of Environmenlly Conscious Design nd Mnufcuring, 4 (1995). 43-52 [9] Friedmn, F.B.: The chnging role of he environmenl mnger, Business Horizons, 28 (1992) [10] Guide, V.D.R., Vn Wssenhove, L.N.: The reverse suly chin, Hrvrd Business Review, 18 (2002). 25-26 [11] Gu, M.: Environmenl oerions mngemen: n ooruniy for imrovemen, Producion nd Invenory Mngemen Journl, 37 (1996). 40-46. [12] Gungor, A., Gu, S.M.: Issues in environmenlly conscious mnufcuring nd roduc recovery: survey, Comuers &Indusril Engineering, 36 (1999). 811-853. [13] Angell, L.C., Klssen, R.D.: Inegring environmenl issues ino he minsrem: n gend for reserch in oerions mngemen, Journl of Oerions Mngemen, 17 (1999). 575-598. [14] Bemon, B.M.: Designing he green suly chin, Logisics Informion Mngemen, 12 (1999). 332-342. [15] Simson, D., Power, D., Smson, D.: Greening he Auomoive Suly Chin: A Relionshi Persecive, Inernionl Journl of Oerions nd Producion Mngemen, 27 (1) (2007). 28-48. [16] Török, Á.: Clime chnge nd rod rnsorion secor, Conference on Environmenl Mngemen, Engineering, Plnning nd Economics (CEMEPE), Skihos (2007) [17] Oscr, R. Lnge: Inroducion o Economic Cyerneics 374