J.A.E.E. van Nunen

The objective in this paper is to shed light into the design of logistic networks balancing profit and the environment. More specifically we intend to i) determine the main factors influencing environmental performance and costs in logistic networks ii) present a comprehensive framework and mathematical formulation, based on multiobjective programming, integrating all relevant variables in order to explore efficient logistic network configurations iii) present the expected computational results of such formulation and iv) introduce a technique to evaluate the efficiency of existing logistic networks.The European Pulp and Paper Industry will be used to illustrate our findings.

Recent literature on sustainable logistics networks points to two important questions: (i) How to spot the preferred solution(s) balancing environmental and business concerns? (ii) How to improve the understanding of the trade-offs between these two dimensions? We posit that a complete exploration of the efficient frontier and trade-offs between profitability and environmental impacts are particularly suitable to answer these two questions. In order to deal with the exponential number of basic efficient points in the frontier, we propose a formulation that performs in exponential time for the number of objective functions only. We illustrate our findings by designing a complex recycling logistics network in Germany.

IBM is among the pioneers recognizing the benefits of closed-loop supply chains that integrate product returns into business operations. We worked on a project exploiting product returns as a source of spare parts. Key decisions concern what recovery opportunities to use, the channel design, and coordinating alternative supply sources. Our analytic inventory-control model and a simulation model showed that procurement-cost savings largely outweigh reverse logistics costs and that information management is essential. These findings provide a basis for significantly expanding the usage of the novel parts supply source, thereby cutting procurement costs.

Abstract\n The primary objective of closed-loop supply chains (CLSC) is to improve the maximum economic benefit from end-of-use products. Nevertheless, literature within this stream of research advocates that closing the loop also helps to mitigate the undesirable footprint of supply chains. Therefore, closed-loop supply chains are assumed to be sustainable supply chains almost by definition. In this paper we analyze if and when this assumption holds. We illustrate our findings based on the supply chain of Electric and Electronic Equipments (EEE). For all phases of the supply chain, i.e. manufacturing, usage, transportation and
\nend-of-life activities, we assess the magnitude of environmental impacts, based on a single environmental metric called Cumulative Energy Demand (CED). Given the environmental hot-spots in the Electric and Electronic Equipments supply chain, we propose useful extensions for existing CLSC optimization models to ensure that closed loop supply chains are at the same time sustainable ones.