CHAPTER 4: SUSTAINABILITY IN THE SUPPLY CHAIN
Sustainability
Regulations and industry standard
Corporate Social
Responsibility
Includes employees, customers,
community, and company reputation
Meeting the needs of present without compromosing the ability of future generations to meet their needs
make a More than “going green”
also known as CSR
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Being a socially responsible company can bolster a company's image and build its brand
is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public.
Stakeholders have strong opinions about
environmental, social, and ethical issues
issue related to CSR
competitive of labour market
commons
Common resources often misallocated
Many inputs to a production system
held by the public
Regulations and Industry Standard
Nearly all industries have regulations
Disassembly and disposal of
hazardous products
International Environment Policies And Standard
European Union Emissions Trading System
To combat climate change
Reduce industrial GHG emissions
“Cap-and-trade” principle
Design and Production for Sustainability
Product Design
Incorporate systems view to lower environmental impact
alternative materials
Production Process
Reduce the amount of resources in the
production process
Reduce cost and environtmental concerns
Logistic
Management analytics can help
Life cycle ownership costs
Evaluate equipment alternatives
Triple bottom Line
Decisions affect people
Decisions affect people
Supplier selection and performance
criteria are important
Materials must be safe and
environmentally responsible
End-of-Life Phase
Automaker’s design incorporates
disassembly, recycling, and reuse
What happens at the
end-of-life stage?
Life Cycle Ownership Costs
Design for assembly