Green Supply-Chain Management.a State-Ofthe-Art Literaturereview.2007.Srivastava.
Green Supply-Chain Management.a State-Ofthe-Art Literaturereview.2007.Srivastava.
Green Supply-Chain Management.a State-Ofthe-Art Literaturereview.2007.Srivastava.
Samir K. Srivastava
There is a growing need for integrating environmentally sound choices into supply-chain management research and practice. Perusal of the literature shows that a broad frame of reference for green supply-chain management (GrSCM) is not adequately developed. Regulatory bodies that formulate regulations to meet societal and ecological concerns to facilitate growth of business and economy also suffer from its absence. A succinct classification to help academicians, researchers and practitioners in understanding integrated GrSCM from a wider perspective is needed. Further, sufficient literature is available to warrant such classification. This paper takes an integrated and fresh look into the area of GrSCM. The literature on GrSCM is covered exhaustively from its conceptualization, primarily taking a reverse logistics angle. Using the rich body of available literature, including earlier reviews that had relatively limited perspectives, the literature on GrSCM is classified on the basis of the problem context in supply chains major influential areas. It is also classified on the basis of methodology and approach adopted. Various mathematical tools/techniques used in literature vis--vis the contexts of GrSCM are mapped. A timeline indicating relevant papers is also provided as a ready reference. Finally, the findings and interpretations are summarized, and the main research issues and opportunities are highlighted.
International Journal of Management Reviews Vol. 9 Issue 1 pp. 000000
Introduction
In early environmental management frameworks, operating managers were involved only at arms length. Separate organizational units had responsibility for ensuring environmental excellence in product development, process design, operations, logistics, marketing, regulatory compliance and waste management. Today, this has changed. As in the quality revolution of the 1980s and the supply-chain
revolution of the 1990s, it has become clear that the best practices call for integration of environmental management with ongoing operations. Green supply-chain management (GrSCM) is gaining increasing interest among researchers and practitioners of operations and supplychain management. The growing importance of GrSCM is driven mainly by the escalating deterioration of the environment, e.g. diminishing raw material resources, overowing waste
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GrSCM. For example, Bey (2001) presents a critical appraisal of developments in the eld of industrial ecology only, while Zhang et al. (1997) focus only on green design. Much of the work is empirical and does not focus adequately on modelling and network design related issues and practices. Our objective is to present a comprehensive integrated view of the published literature on all the aspects and facets of GrSCM, taking a reverse logistics angle so as to facilitate further study, practice and research. To meet this objective, we dene a few relevant terms in this section. Either these have been taken from the existing literature, or we dene them appropriately. The second section portrays the research methodology applied. Qualitative analysis was applied to classify the existing literature on the basis of problem context and the methodology/approach adopted. We also map the tools/techniques vis--vis the problem context classication. Finally, we provide a timeline indicating relevant papers for the benet of academicians, researchers and practitioners. At the end of the paper, we draw certain conclusions and identify potential issues and opportunities in the realm of GrSCM.
Green Supply-Chain Management Defined
Green supply-chain management has its roots in both environment management and supplychain management literature. Adding the green component to supply-chain management involves addressing the inuence and relationships between supply-chain management and the natural environment. Similar to the concept of supply-chain management, the boundary of GrSCM is dependent on the goal of the investigator. The denition and scope of GrSCM in the literature has ranged from green purchasing to integrated green supply chains owing from supplier to manufacturer to customer, and even RL (Zhu and Sarkis 2004). For the purpose of this paper, GrSCM is dened as integrating environmental thinking into supply-chain
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management, including product design, material sourcing and selection, manufacturing processes, delivery of the nal product to the consumers as well as end-of-life management of the product after its useful life. We specifically focus on RL and mathematical modelling aspects in order to facilitate further study and research. Green design has been used extensively in the literature to denote designing products with certain environmental considerations. It is the systematic consideration of design issues associated with environmental safety and health over the full product life cycle during new production and process development (Fiksel 1996). Its scope encompasses many disciplines, including environmental risk management, product safety, occupational health and safety, pollution prevention, resource conservation and waste management. Green operations relate to all aspects related to product manufacture/remanufacture, usage, handling, logistics and waste management once the design has been nalized. Green manufacturing aims to reduce the ecological burden by using appropriate material and technologies, while remanufacturing refers to an industrial process in which worn-out products are restored to like-new condition (Lund 1984). Rogers and Tibben-Lembke (1999, 2) dene RL as the process of planning, implementing, and controlling the efcient, cost-effective ow of raw materials, in-process inventory, nished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal, while Maruglio (1991, 57) denes waste minimization as the reduction ... of hazardous waste which is generated (during production and operations) or subsequently treated, stored or disposed ....
Research Methodology
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into supply-chain management, and thereafter, to classify them so as to identify gaps, issues and opportunities for further study and research. A literature review seems to be a valid approach, as it is a necessary step in structuring a research eld and forms an integral part of any research conducted (Easterby-Smith et al. 2002). This helps to identify the conceptual content of the eld (Meredith 1993) and guides towards theory development. Our research is driven by theoretical preconsiderations and follows a clear process, as this allows conclusions to be drawn on the reviewed literature. It may be classied as an archival research method in the framework for conducting and evaluating research suggested by Searcy and Mentzer (2003). Our process of analysis comprises the following steps: Dening unit of analysis: The unit of analysis has been dened as a single research paper/book. We further delimit the material (research paper/book) to be collected as per our scope. Classication context: We select and dene the classication context to be applied in the literature review to structure and classify the material. There are two contexts: the problem context and methodology/approach context. Material evaluation: The material is analysed and sorted according to the classication context. This allows identication of relevant issues and interpretation of the results. Problem context and related methodology/ approaches allow classication of the reviewed literature, which can be derived deductively or inductively. Collecting publications and delimiting the eld: Our literature review focuses upon books, edited volumes and journal articles only. To establish a time span, a starting point was set at 1990. This seems justied, as the beginning of the debate on GrSCM can be traced to this period. Library databases were used where a keyword search using some important keywords such as green supply chain, remanufacturing,
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The objective of this paper is to identify major works on green supply-chain management research integrating environmental thinking
We classify the existing GrSCM literature into three broad categories based on the problem context in supply chain design: literature highlighting the importance of GrSCM; literature on green design; and literature on green operations, as shown in Fig. 1. Green design may be looked into from the viewpoint of environment conscious design taking life56
cycle assessment of the product/process into account. Similarly, green operations involve all operational aspects related to RL and network design (collection; inspection/sorting; pre-processing; network design), green manufacturing and remanufacturing (reduce; recycle; production planning and scheduling; inventory management; remanufacturing: re-use, product and material recovery) and waste management (source reduction; pollution prevention; disposal). We purposely do not consider literature and practices related to green logistics, as we feel that the issues are more operational than strategic in nature and may not be signicant in the supply chain design per se. We also do not focus in detail on empirical studies on GrSCM and literature on green purchasing, industrial ecology and industrial ecosystems, as it is delimited by our research design. We focus more on RL as the establishment of efcient and effective RL networks is a prerequisite for efcient and protable recycling and remanufacturing. We also focus more on mathematical modelling aspects. Both of these have received less attention in the GrSCM literature so far. The classication is for the purpose of easier understanding of different problem contexts of GrSCM their interactions and relationships in order to present a welldened and clear picture for further study and research. It is not rigid, and there may be many overlaps (for example, reduce gets attention not only in green manufacturing and remanufacturing, but also elsewhere as in reverse logistics and waste management; green design, too, emphasizes reduced use of virgin material and other resources. Similarly, green design should take into account the whole product life-cycle cost, including those during manufacturing and remanufacturing, reverse logistics and disposal. The gure does not take account of all these complex relationships and interactions but presents a simplistic view. Further, we do not show some other relevant aspects and areas such as green purchasing, industrial ecology and industrial ecosystems, as they are delimited by our research design.
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Importance of GrSCM
As in any emerging research area, the early literature focuses on the necessity and importance of GrSCM, denes the meaning and scope of various terms and suggests approaches to explore the area further. Fundamentals of greening as a competitive initiative are explained by Porter and van der Linde (1995a,b). Their basic reasoning is that investments in greening can be resource saving, waste eliminating and productivity improving. Three approaches in GrSCM, namely reactive, proactive and value-seeking, are suggested (Kopicki et al. 1993; van Hoek 1999). In the reactive approach, companies commit minimal resources to environmental management, start labelling products that are recyclable and use end of pipeline initiatives to lower the environmental impact of production. In the
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proactive approach, they start to pre-empt new environmental laws by realizing a modest resource commitment to initiate the recycling of products and designing green products. In the value-seeking approach, companies integrate environmental activities such as green purchasing and ISO implementation as strategic initiatives into their business strategy. The perspective then changes from greening as a burden to greening as a potential source of competitive advantage (van Hoek 1999). Owen (1993) and Sarkis (1995) discuss environmentally conscious manufacturing. Friedman (1992), Guide and Wassenhove (2002) and Gupta (1996) discuss the changing role of the environmental manager. Interactions among various stakeholders on integrated GrSCM and advantages that may accrue to them have been described by Gungor and Gupta (1999). At the end of the 1990s, integrating these
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for GrSCM. Ravi et al. (2005) analyse alternatives in RL, Mukhopadhyay and Setoputro (2005) derive a number of managerial guidelines for return policies of build-to-order products, while Srivastava and Srivastava (2006) suggest ways to manage end-of-life product returns. Kainuma and Tawara (2006) extend the range of supply chain to include re-use and recycling throughout the life cycle of product and services and propose a lean and green multiple utility theory approach to evaluate green supply chain performance from an environmental performance point of view.
Green Design
The literature emphasizes both environmentally conscious design (ECD) and life-cycle assessment/analysis (LCA) of the product. The aim is to develop an understanding of how design decisions affect a products environmental compatibility (Glantschnig 1994; Navin-Chandra 1991). Madu et al. (2002) present a very useful hierarchic framework for environmentally conscious design. Sufcient literature exists on design for material and product recovery (Barros et al. 1998; Ferrer 1997a,b, 2001; Gatenby and Foo 1990; Guide and van Wassenhove 2001; Krikke et al. 1999a,b; Louwers et al. 1999; Melissen and de Ron 1999; Seliger et al. 1994). Boothroyd and Alting (1992), Krikke et al. (1999a,b, 2003), Kroll et al. (1996), Laperiere and ElMaraghy (1992), Lee et al. (1995), Moore et al. (1998, 2001), Scheuring et al. (1994), Seliger et al. (1994) and Taleb and Gupta (1997) discuss design for disassembly, whereas Gupta and Sharma (1995), He et al. (2004), Jahre (1995), Jayaraman et al. (1999), Johnson (1998) and Sarkis and Cordeiro (2001) deal with design for waste minimization. A common approach is to replace a potentially hazardous material or process by one that appears less problematic. This seemingly reasonable action can sometimes be undesirable if it results in the rapid depletion of a potentially scarce resource or increased extraction of other environmentally problematic
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materials. Several examples of such equivocal proposals are presented by Graedel (2002). Azzone and Noci (1996) suggest an integrated approach for measuring the environmental performance of new products, while Arena et al. (2003) assess the environmental performance of alternative solid waste management options that could be used. Design under legislation and regulations have been considered by Barros et al. (1998), Bellmann and Khare (1999, 2000), Fleischmann et al. (2001) and Das (2002), while Bras and McIntosh (1999), Guide and Srivastava (1997a, 1997b, 1998), Guide et al. (1999a, 2000a), Inderfurth et al. (2001) and Ishii et al. (1995) deal with design for remanufacturing. Bellmann and Khare (2000) and Henshaw (1994) take up design for recycling issues, while Krikke et al. (1999a) consider better choices of material. Life-cycle assessment/analysis is described as a process for assessing and evaluating the environmental, occupational health and resource-related consequences of a product through all phases of its life, i.e. extracting and processing raw materials, production, transportation and distribution, use, remanufacturing, recycling and nal disposal (Gungor and Gupta 1999). The scope of LCA involves tracking all material and energy ows of a product from the retrieval of its raw materials out of the environment to the disposal of the product back into the environment (Arena et al. 2003; Miettinen and Hmlinen 1997; Tibben-Lembke 2002). Attempts have also been made to develop operational models to help companies understand, monitor and assess life-cycle management (Sanchez et al. 2004).
Green Operations
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and van Wassenhove 2001, 2002), integrating remanufacturing and RL with supply chain design (Chouinard et al. 2005; Fleischmann et al. 2001; Goggin and Browne 2000; Savaskan et al. 2004) are posed in this area. Green manufacturing and remanufacturing. This is a very important area within green operations. The techniques for minimum energy and resource consumption for ow systems in order to reduce the use of virgin materials are based on three elds of study: pinch analysis (Linnhoff 1993), industrial energy (Boustead 1979) and energy and lifecycle analysis (Lee et al. 1995). Recycling, mainly driven by economic and regulatory factors, is performed to retrieve the material content of used and non-functioning products. Logistics represent up to 95% of total costs (Stock 1998) in recycling. Economically driven recycling nds its application in automobiles (Bellmann and Khare 1999) and the consumer electronics industry (de Fazio et al. 1997; Johnson 1998). Regulatory electronics recycling is also practised (Krikke et al. 1999a,b; Nagel and Meyer 1999; Pohlen and Farris 1992). Hoshino et al. (1995) dene remanufacturing as recycling-integrated manufacturing. Industries that apply remanufacturing typically include automobiles, electronics and tyres. Product recovery refers to the broad set of activities designed to reclaim value from a product at the end of its useful life. Pugh (1993) uses mathematical models in evaluating resource recovery options. Various authors categorize and classify the recovery process differently. Johnson and Wang (1995) dene it as a combination of remanufacture, re-use and recycle, whereas Thierry et al. (1995) divide recovery into repair, refurbish, remanufacture, cannibalize and recycle. Melissen and de Ron (1999) dene recovery practices and provide relevant denitions and terminology. A model for evaluating recovery strategies for the product without violating the physical and economical feasibility constraints is proposed by Krikke et al. (1998), which has been
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Some of the key challenges of GrSCM such as integrating remanufacturing with internal operations (Ferrer and Whybark 2001), understanding the effects of competition among remanufacturers (Majumder and Groenevelt 2001), integrating product design, product take-back and supply chain incentives (Guide
process scheduling (Dowie 1994; Gungor and Gupta 1998; Gupta and Taleb 1994). Re-use of products and materials is not a new phenomenon. Thierry et al. (1995) describe four forms of re-use direct re-use, repair, recycling, and remanufacturing. Re-use may be in the form of assemblies (Ayres et al. 1997; Dekker et al. 2004; Ferrer 1997a, 2001; Krikke et al. 1999a; Kriwet et al. 1995) or subassemblies and components (Ayres et al. 1997; Ferrer 1997a, 2001; Krikke et al. 1999a; Kriwet et al. 1995). It may also be re-use of materials (Ferrer 1997a, 2001; Fleischmann et al. 2001; Krikke et al. 1999a; Louwers et al. 1999). Linton and Johnson (2000) describe a decision support system for re-use and remanufacturing. Traditional production planning and scheduling methods have limited applicability to remanufacturing systems. Guide and Srivastava (1997c) list the factors which induce complexity in such systems. Guide et al. (1999a) carry out a survey and evaluate research in various decision-making areas of production planning and control for remanufacturing. Fleischmann et al. (1997) give an excellent review of the re-use of products and materials from an operations research (OR) perspective, whereas Guide et al. (2003) discuss building contingency plans in such scenarios. Guide and Pentico (2003) develop a hierarchical decision model for remanufacturing and re-use, while Guide et al. (2005) analyse the performance of static priority rules for a remanufacturing shop that handles two remanufacturable products. Most inventory models consider three types of stocked items: non-serviceable items, i.e. returned items that are not yet remanufactured, remanufactured items and manufactured items. Deterministic models, where the return and demand rates are known a priori also exist (Richter 1996; Richter and Dobos 1999; Richter and Sombrutzki 2000; Richter and Weber 2001). However, stochastic models, where the return and demand rates are probabilistic, provide better understanding of the inventory system (van der Laan et al. 1999b).
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Both periodic and continuous review models have been developed. Examples of periodic review models include: a model in which returned products can be re-used directly (Ferrer 1997a); a model with a holding cost (Teunter et al. 2000); a model with variable set-up numbers (Richter 1996); and models considering the effects of non-zero lead-times (Inderfurth and van der Laan 2001; Kiesmller and Scherer 2003; van der Laan and Salomon 1997). Among continuous review models, Heyman (1977) nds an optimal balance between inventory holding cost and production cost. Muckstadt and Isaac (1981) develop a model for a remanufacturing system with non-zero lead times and a control policy with the traditional (s, Q) rule, while van der Laan et al. (1996b) present a different approximation method. van der Laan et al. (1999a) also develop push and pull strategies for joint production and inventory for a system using both new and recovered parts. Minner (2003) discusses RL inventory models in detail. Reverse logistics and network design. Reverse logistics activities differ from those of traditional logistics (Carter and Ellram 1998). Reverse logistics networks have some generic characteristics related to the coordination requirement of two markets, supply uncertainty, returns disposition decisions, postponement and speculation (Blumberg 1999; Fleischmann et al. 2000; Hess and Meyhew 1997; Jahre 1995; Krikke et al. 1999a, 1999b; Lambert and Stock 1993; Yalabik et al. 2005). As a result, they affect network design to a considerable extent. Collection is the rst stage in the recovery process in which product types are selected and products are located, collected and transported to facilities for remanufacturing. Used products originate from multiple sources and are brought to the product recovery facility in a converging process (Krikke et al. 1998). Inspection/sorting illustrates the need for skill in the sorting of used products (Ferrer and Whybark 2000). This may be carried out either at the point/time of collection itself or
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afterwards (at collection points or at remanufacturing facilities). Cairncross (1992) suggests that collection schemes can be classied according to whether materials are separated by the consumer (i.e. separation at source) or centralized (i.e. mixed waste processed). The need for environmentally responsible logistics systems is highlighted by Wu and Dunn (1995). The importance of RL programmes and the process of their development and implementation have also been described in the literature (Poist 2000; Stock et al. 2002). Redesigning logistics networks to accommodate product returns and remanufacturing and re-use of such parts and components can often be protable and is assuming greater importance in business as well as in research (TibbenLembke 2002). The physical location of facilities and transportation links need to be chosen to convey used products from their former users to a producer and to future markets again (Fleischmann et al. 2001). Companies need to realize the hidden value in RL and start to focus in this area (Mollenkopf and Closs 2005). They need to understand the nancial impact of RL strategies. Srivastava and Srivastava (2005) develop a hierarchical decision-making framework to nd the feasibility of prot-driven RL networks. They nd RL activities protable for their select category of products. Nowadays, information and communication technologies (ICT) are likely to play a key role in the co-ordination and integration of GrSCM activities (Dekker et al. 2004). Problems related to the integration of RL activities within an organization have been dealt by Chouinard et al. (2005), while Daugherty et al. (2005) nd that resource commitment to information technology leads to superior RL performance. For traditional forward logistics environments, quantitative approaches such as mixed integer linear programming (MILP) models (Mirchandani and Francis 1989) are readily available; however, a standard set of models is yet to be established for reverse networks. A survey by Fleischmann et al. (2000) compares nine case studies on recovery networks in
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genetic algorithm that solves the RL problem involving product returns. Waste management. Caruso et al. (1993) model a solid waste management system (including collection, transportation, incineration, composting, recycling and disposal) using a multiobjective location-allocation model supported by planning heuristics. A decision support system, for urban waste management in a regional area, for evaluating general policies for collection and for identifying areas suitable for locating waste treatment and disposal plants is presented by Haastrup et al. (1998). Giannikos (1998) uses a multi-objective model for locating disposal or treatment facilities and transporting waste along the links of a transportation network. Bloemhof-Ruwaard et al. (1996a,b), Richter (1996) and Richter and Dobos (1999) use other mathematical modelling techniques for waste management. Mourao and Amado (2005) describe a heuristics for a refuse collection application. The source-reduction/pollution-prevention (SR/P2) strategy focuses on preventing pollution at the source (in products as well as manufacturing processes) rather than removing it after it has been created. It is the concept of preventing the creation of waste rather than managing it after it is generated (Gupta and Sharma 1995). The term pollution prevention was coined in 1976 by the 3M Company. Dunn and El-Halwagi (1993) develop a methodology for the optimal design of recycle/ re-use process networks to minimize the emission of hydrogen sulphide from pulp and paper plants. Zhang et al. (1997) list four preferences in their waste management hierarchy. An example of pollution prevention with growing public visibility and product design in the case of internal combustion engines is presented by Hanna and Newman (1995). Disposal has always been a compelling problem and has led to green consciousness. In the case of GrSCM, efforts to minimize disposal have been the focus. Bellman and Khare (1999) suggest reducing the economic
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and environment-related costs of automobile shredding residue (ASR). Various waste management and inventory models take disposal costs into account. Richter and Dobos (1999) analyse economic order quantity (EOQ) repair along with waste disposal with integer set-up numbers. Louwers et al. (1999) include transport costs and waste disposal in their model. Richter and Weber (2001) extend the reverse Wagner/Whitin model to the case with additional variable manufacturing and remanufacturing cost. Teunter and Vlachos (2002) focus on the necessity of a disposal option for remanufacturable items. Recent work in the area is related mainly to the study of EMS implementation practices (Hui et al. 2001), total product system concept (Warren et al. 2001), life-cycle assessment and management (Arena et al. 2003; Sanchez et al. 2004), management challenges and environmental consequences in reverse manufacturing for the computer industry (White et al. 2003), a generic functional model for modelling the material and ow of waste from both a physical and cumulative cost perspective (Hicks et al. 2004), revaluing the hierarchy of paper waste management policies in a dynamic general equilibrium model (Samakovlis 2004), policy evaluations under environmental constraints using a computable general equilibrium model (Masui 2005) and a case study on waste management in a large complex health care organization in UK (Woolridge et al. 2005).
Classification Based on Methodology/ Approach
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Similarly, review papers have been covered in the Introduction, and are not covered further. Therefore, empirical studies and mathematical modelling approaches are covered here.
Empirical Studies
The literature on GrSCM may also be classied on the basis of methodology and approach used into: thought papers and perspectives; frameworks and approaches; empirical studies; mathematical modelling approaches; and reviews. This helps us to understand GrSCM from a different perspective from the problem context described earlier. Thought papers and perspectives as well as frameworks- and approaches-related articles have been sufciently covered in Importance of GrSCM.
Empirical research studies include case research, eld surveys and interviews, eld experiments, mail surveys, laboratory experiments and game simulations. Several empirical studies in the area of GrSCM have been published. They consist mainly of case studies and surveys. Most case studies deal with green design (product and logistics) and green operations (remanufacturing, recycling, RL, etc.). The IBM product recovery management programme is covered by Roy and Whelan (1992) and Thierry et al. (1995). The product recovery management system of a photocopier manufacturer for its used products is discussed by Thierry et al. (1995). They look at the specic characteristics of repair, cannibalization, recycling and remanufacturing operations. Johnson (1998) presents six caselets on purchasing practices while discussing managing value in RL systems. Lenox et al. (2000) carry out an assessment of design-forenvironment practices in leading US electronics rms, including AT&T, Xerox, IBM and DEC. Goldsby and Closs (2000) describe the case study of a Michigan beverage distributor and retailer who collects empty beverage containers for recycling purposes. They discuss the reengineering of supply chain-wide processes using activity-based costing (ABC). Duhaime et al. (2000) describe value analysis and optimization of reusable containers at Canada Post. Ritchie et al. (2000) discuss the RL supply chain of a UK pharmacy. Warren et al. (2001) describe a total product system concept for a highly customized build-to-order product system. Scherpereel et al. (2001) use a case study to establish the relevance of selecting environmental performance indicators, while Khoo et al. (2001) present a case study of a supply chain concerned with the distribution of aluminium. They use simulation to create a
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A variety of tools and techniques have been used for problem formulation. Linear programming (Barros et al. 1998; BloemhofRuwaard et al. 1996a,b; Crainic et al. 1993; Fleischmann et al. 2001; Haas and Murphy 2002; Hu et al. 2002; Kroon and Vrijens 1995; Jayaraman and Srivastava 1995; Jayaraman et al. 1998, 1999; Louwers et al. 1999; Marin and Pelegrin 1998; Ritchie et al. 2000, Srivastava and Srivastava 2005) is the most common technique used for problem formulation, followed by dynamic programming (Inderfurth and van der Laan 2001; Inderfurth et al. 2001; Kelle and Silver 1989; Kiesmller and Scherer 2003; Klausner and Hendrickson 2000; Krikke et al. 1998, 1999a; Richter 1996; Richter and Sombrutzki 2000; Richter and Weber 2001).
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Non-linear programming (Jayaraman et al. 1998; Richter and Dobos 1999; Sarkis and Cordeiro 2001) has also been used. Nagurney and Toyasaki (2005) use a network equilibrium model to establish variational inequality formulation. Mostard and Teunter (2006) derive a simple closed-form equation that determines the optimal order quantity, given the demand distribution, the probability that a sold product is returned and all relevant revenues and costs. Even pure algebraic equations (Ashayeri et al. 1996; Mukhopadhayay and Setoputro 2005; Richter 1996; Richter and Dobos 1999) are used in many papers. Markov chains (Fleischmann et al. 2002; Gupta 1993; Kiesmller and van der Laan 2001; van der Laan et al. 1996a,b, 1999a,b; van der Laan and Salomon 1997) have been used in inventory-related problem formulations. Guide et al. (2005) and van der Laan et al. (1996b) use queuing. Moore et al. (1998, 2001) use PetriNets. Ferrer and Ayres (2000) use an inputoutput model, whereas Majumder and Groenevelt (2001) use game theory to formulate their problem. Marx-Gomez et al. (2002) use fuzzy and neuro-fuzzy to forecast scrapped products returns. Analytical network process is used by Sarkis (1998, 1999) and Ravi et al. (2005), while analytical hierarchy process (AHP) is used by Madu et al. (2002). Computer programs are often used for data input. Louwers et al. (1999) use Fortran, Johnson and Wang (1995) use C++, while Spender et al. (1997) use TuboPascal and dBase. Barros et al. (1998), Krikke et al. (1998) and Louwers et al. (1999) use spreadsheets. Minner (2001) formulates a combinatorial optimization problem, while Ferrer (1997a), Haas and Murphy (2002) and Sarkis and Cordeiro (2001) formulate regression equations. For solving LP formulations, LP solvers such as LINDO (Spengler et al. 1997) and GAMS (Barros et al. 1998; Jayaraman et al. 1998, 1999; Srivastava and Srivastava 2005) have been used. Heuristics (Barros et al. 1998; Bloemhof-Ruwaard et al. 1996a; Gupta 1993; Jayaraman et al. 2003; Marin and Pelegrin 1998; Mourao and Amado 2005; Richter and
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Sombrutzki 2000; Richter and Weber 2001) are widely used to solve complex problems. Ferrer and Ayres (2000) use an inputoutput model, whereas Marx-Gomez et al. (2002) use fuzzy and neuro-fuzzy methods for solution. PetriNets are used by Moore et al. (1998, 2001). Haas and Murphy (2002), Sarkis (1999) and Sarkis and Cordeiro (2001) use data envelopment analysis (DEA) for problem formulation, solution and analysis. Spengler et al. (1997) use branch-and-bound as well as modied Benders decomposition for solution, while Listes and Dekker (2005) assign priority orders to integer variables for branching. Lagrange decomposition is used by BloemhofRuwaard et al. (1996a,b) and Marin and Pelegrin (1998). Grid-search is used by Inderfurth et al. (2001). Various meta-heuristics such as genetic algorithm, tabu search and simulated annealing are used by Minner (2001). Recently, Min et al. (2006) use a genetic algorithm approach to develop a multi-echelon RL network for product returns. Simple enumeration techniques (Inderfurth et al. 2001; van der Laan and Salomn 1997; van der Laan et al. 1996a, 1999b) are sometimes used for solution. Software tools such as EDS RLog (Nagel and Meyer 1999), EDIT (Johnson and Wang 1995) and MATLAB (Guide et al. 2005) have also been used. Simulation (Ashayeri et al. 1996; Guide and Srivastava 1997a,b, 1998; Guide et al. 1996, 1997a,b,c, 1999b, 2000b; Haas and Murphy 2002; Hirsch et al. 1998; Khoo et al. 2001; Linton and Johnson 2000; Marx-Gomez et al. 2002; Vlachos and Tagaras 2001) is commonly used for scenario generation and analysis. Srivastava and Srivastava (2006) use system dynamics simulation for estimating end-ofthe-life returns. Fleischmann et al. (2001) and Swenseth and Godfrey (2002) carry out parametric analysis. Scenario analysis is carried out by Linton and Johnson (2000), while Klausner and Hendrickson (2000) and van der Laan et al. (1999a,b) carry out sensitivity analysis. Majumder and Groenevelt (2001) use game theory for analysis and interpretation, while Haas and Murphy (2002), Sarkis
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and Cordeiro (2001) and Zhu and Sarkis (2004) carry out regression analysis. Chinander (2001), Guide et al. (1996, 1997a), Haas and Murphy (2002) and Sarkis and Cordeiro (2001) use descriptive statistics. Chinander (2001), Guide (1997), Guide and Srivastava (1997a,b), Guide et al. (1997a,b,c, 2000a) and Swenseth and Godfrey (2002) carry out ANOVA extensively. A variety of the above tools and techniques have been used for problem formulation, solution and analysis in papers published in edited books such as Dekker et al. (2004), Dyckhoff et al. (2003), Fleishmann and Klose (2005) and Klose et al. (2002).
Mapping of Tools/Techniques Used vis--vis the Contexts of GrSCM
We map various mathematical tools/techniques vis--vis the contexts of GrSCM. This depends much on the methodology used and also helps us to gauge their applicability/suitability. This is shown in Table 1. The cited reference numbers correspond to the serial numbers in the Reference list. It is worth noting that the particular tool/technique used depends on a host of factors, such as the nature of the problem, the nature and availability of data, familiarity with the technique, compatibility between the analysis and solution tools/techniques envisaged, previous related works and the wish to use new emergent tools/techniques in operations research/decision science (OR/DS). Very few models have been used for integrated GrSCM. AHP/ANP, Regression, DEA and descriptive statistics (based on surveys/ interviews) have been tried. Linear programming, non-linear programming (NLP) and MILP have also been suggested in books but have not been used to a great extent. Green design has seen very little application in terms of mathematical tools, techniques and methodologies. Lately, LP, MILP formulations and software packages and spreadsheets for solution have been used. Green manufacturing and remanufacturing have used mathematical models, tools and
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5, 54, 66, 68, 94, 109, 116, 118, 160, 173, 174, 202, 206, 207 184 139 18, 121, 156, 157, 195 25, 184 184, 186 100, 115, 121 143 100, 101, 113, 115, 173, 175 25, 42, 53 65, 68, 84, 101, 106, 115, 162, 174 65, 68, 202, 207
158, 174
AHP/ANP Computer programs Descriptive statistics/ANOVA DEA Dynamic programming Fuzzy/neuro-fuzzy Game theory Heuristics I/O Model LP and MILP Markov chain/queuing Metaheuristics Non-linear programming Petrinet Regression
172 52, 71, 78, 63, 72, 63, 65, 66, 72, 74, 76, 101, 106 65, 66, 71, 73, 78 105, 107, 137, 162, 195 40, 53, 88 88 101, 175, 176 100, 113 186 186 173
140 16 45 186 16 122, 127 53, 122, 195 113 54, 84, 100, 116, 211, 212, 213, 215 100, 152, 206, 215 186 66, 106, 174 211 151 106 156, 157 117, 186, 227 42, 117 88 186 186 8, 28, 35, 53, 105, 107, 108, 113, 137 15, 16, 24, 58, 186 16 16, 150, 157, 195 66, 84, 100, 115, 157, 213 44, 175, 176 8, 108, 142, 195 15
Table 1. Continued
Context of GrSCM Green Design Green operations Green manufacturing & remanufacturing LCA Mathematical tools/techniques Scenario/sensitivity analysis Simulation Software and spreadsheets
a
Reverse logistics
Waste management
ECD
Importance of GrSCM
Inventory management
PP&S
211, 215 5, 65, 68, 206, 207, 217 40, 54, 65, 66, 68, 100, 101, 106, 207, 211, 213, 215
211 63, 71, 44, 72, 78, 65, 72, 63, 73, 80, 66, 74 65, 74, 87, 67, 66, 76, 101
107, 118 88, 96, 198 8, 50, 88, 105, 107, 119, 137, 162, 195 206 211
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GrSCM can reduce the ecological impact of industrial activity without sacricing quality, cost, reliability, performance or energy utilization efciency. It involves a paradigm shift, going from end-of-pipe control to meet environmental regulations to the situation of not only minimizing ecological damage, but also leading to overall economic prot. The area throws various challenges to practitioners, academicians and researchers. We present a state-of-the-art literature review of GrSCM integrating the whole gamut of activities in the area. Our literature review highlights the ongoing integration process in
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GrSCM. We nd that the depth of research in various categories has been different. Many specic empirical studies have been carried out, and categories such as remanufacturing have been studied to a great depth. Even, within remanufacturing disassembly has been studied to a very detailed level. Of late, other categories such as RL have started getting more attention. We focus more on relatively unexplored categories, as they offer potential for further exploration and research. Our classications will help academicians, practitioners and researchers to understand integrated GrSCM from a wider perspective. Based on our problem context classication and scope for future practice and research, an evolutionary timeline has been prepared taking into account all the relevant and seminal papers published in the area of GrSCM. The same is depicted in Figure 2. Our classications along with timeline and cited references may be used as a broad frame of reference to develop concepts and models that facilitate managers and other stakeholders trying to integrate environmentally sound choices into supply-chain management. Practitioners can also gain good insight into real-life problems and how some companies have tried to address them by referring to the empirical studies. This can serve as a platform for them to adapt and develop their own initiatives and practices. Research in GrSCM to date may be considered compartmentalized into content areas drawn from operations strategy. The primary areas of emphasis have been quality, operations strategy, supply-chain management, product and process technologies, which are collectively beginning to contribute to a more systematic knowledge base. It is reasonable to expect that these research areas will continue to hold the greatest promise for advance in the short term. However, more integrative contributions are needed in the longer term, including intra- and inter-rm diffusion of best practices, green technology transfer and environmental performance measurement. One of the biggest challenges facing the eld of GrSCM is extending the historical
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and rework facilities in alignment with competitive priorities, the inuence of remanufacturing on the supply chain of a particular rm and how service quality and recovery strategies inuence consumer behaviour and vice versa. Scope also exists to carry out empirical studies to nd how the regulatory environment, economic considerations and level of commitment inuence the volume of returns. Similarly, studies to nd how various uncertainties inuence channel relationships within GrSCM are also desired. Disassembly is an important component of remanufacturing which is currently labourintensive and expensive. Thus, it becomes very important to develop automated disassembly systems which may eliminate the drawbacks of manual disassembly, i.e. lengthy disassembly completion time, human exposure to possible hazardous materials and by-products, expensive labour use, etc. Products will have to be designed as technical systems based on a strictly modular master plan, with ease of maintenance and ease of out-of-sequence disassembly by workers or robots. The product life cycle has been studied in great depth. However, more research is needed in understanding RL and its connection to the product life cycle. An important area for investigation would be to see how, in practice, RL activities do change over the life of a particular product. More information is needed about returns levels. At a basic level, there is little published information on product return levels by product type. More study of the impact of marketing on returns is needed. In general, theory and models need to be developed and consolidated to establish the relationship between new product sales and returns rates. Research is needed into how companies should process, store and dispose of returned goods. Much more research is needed in understanding secondary markets, and how companies should best sell unwanted products. In addition to traditional brokers, many rms are now selling this material through online and traditional auctions.
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Although the current development in GrSCM research is encouraging, it is being conducted in clusters (mainly Europe and North America). It is, therefore, necessary that interactions between these research efforts be studied in order to develop interrelationships and determine the global effect of this eld. Literature on integrated business strategy (comprising product and process design, manufacturing, marketing, RL and regulatory compliance) in the context of GrSCM is at the level of thought papers and frameworks only. More research is needed in determining how companies should best select products for each outlet to maximize returns, while still protecting brand integrity. Further, GrSCM deserves special attention in terms of resource commitment within a rm/ supply chain. GrSCM seems a promising area for trying out new operations research techniques and for using traditional techniques for overall GrSCM Design. The problem is complex and challenging, as a very large number of parameters, decision variables and constraints are involved along with a large number of estimation requirements such as those of expected demands and returns and cost criteria associated with each decision. Perhaps, a combination of various tools and techniques (both traditional and new) may be combined for the purpose of formulation, approximation, analysis and solution of such complex problems. Many changes in concepts, technologies and players can be expected in the years ahead. We can expect a steady growth in the area of recovery/re-use/remanufacture of items and a quantum leap in the area of RL. Moreover, the rules that govern the attractiveness of recovery/re-use of products, materials and components are undergoing changes at the local, state, national and global levels. Major producers of virgin items, many of whom have not been particularly active in various Rs, are likely to increase their activities in response to public, regulatory and market forces. In many cases, they will probably work in partnership or even joint ventures with entrepreneurial rms.
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Acknowledgements
We wish to thank Hale Kaynak, Associate Editor, and the three anonymous referees for providing pertinent and useful comments during various revisions that helped in making the manuscript more focused, precise and useful.
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