INTRODUCTION

The supply chain has been traditionally defined as a one way, integrated
manufacturing process wherein raw materials are converted into final
products, then delivered to customers.

Nowadays due to recent changing environmental requirements affecting

manufacturing operations, increasing attention is given to developing
environmental management (EM) strategies for the supply chain.

GSCM is an integrating environment thinking into supply chain

management, including product design, material sourcing and selection,
manufacturing processes, delivery of the final product to the consumers, and
end-of-life management of the product after its useful life.
 Flow chart:

MANUFACTURES

DISTRIBUTORS

RETAILERS

CUSTOMERS
 FACTORS DRIVE A
COMPANY TO ADOPT
GSCM
Government

Environmentally aware customer

Market and competitor

Company
DESIGNING THE GREEN SUPPLY
CHAIN
Distribution

consumer

supplier Manufacturer
Retailer
STAGES OF ENVIRONMENTAL
MANAGEMENT

1. PROBLEM SOLVING TRADITIONAL APPROACHES.

VIEW REGULATORY COMPLIANCE AS A
BURDENSOME CAUSE OF DOING BUSINESS

2.MANAGING FORPRIMITIVE ATTEMPT AT EM COORDINATION AND

COMPLIANCE INTEGRATION, COMPLIANCE ORIENTED
3. MANAGING FOR ASSURANCE VISIONARY/LONG RANGE PLANNERS
UTILIZE RISK MANAGEMENT TO BALANCE
POTENTIAL FUTURE LIABILITIES VERSUS COSTS

4. MANAGING FOR ECO-POLLUTION PREVENTION INSTEAD OF

EFFICIENCY POLLUTION CONTROL

5. FULLY INTEGRATED ENVIRONMENTAL QUALITY VIEWED AS AN

ASPECT OF TOTAL QUALITY
MANAGEMENT(TQM)
GLOBAL CONCERN ABOUT PROCESSES AND
ENTIRE PRODUCT LIFE CYCLE
The Extended Supply
Chain
THE EXTENDED SUPPLY CHAIN
• Environmental targets are to be added to
economical targets .

• The company target is to find the right

balance between these two different
dimensions, which often seem to be in
contrast.

• The aim of the seminar is to show how these

two goals could be perceived simultaneously,
driving the traditional business practice into
new opportunities
ALUMINIUM SUPPLY CHAIN
 INGOT
 The costs that will be taken into account have been
attributed to the two different parties-
 The refiner (r)
 the component producer (p).

 Different cost components have been considered

separated-
 Costs for the aluminium alloy production (pr),
 aluminium ingots solidification (is),
 aluminium transport (tr),
 aluminium ingots holding (ih),
 aluminium ingots melting (im),
 molten aluminium warm-up (wu)
 , molten aluminium keeping (kp),
 additional equipments depreciation (d)
 TRANSPORTATION

For maximum delivery distance of 200 km in

numerical example, a distance of 100km
determines a cost saving between 4% and 5%
on the aluminium selling price (one ladle per
day, i.e. 1500 ton/year) and 3–4% on the
aluminium selling price (four ladles per day, i.e.
6000 ton/year). But, beyond the costs, the
environmental impact needs to be taken into
account
Environmental impact
The environmental impact of the two alternative
chains has been computed considering the
following main pollutants: In the case examined,
two main causes contribute to pollution: transport
(T) and the re-melting (M) process in the
component producer furnace. As far as the former
is concerned, both levels and type of transport
pollution depend on the combination of two
additional factors: The type of transportation, i.e.
the truck and its load, and the distance travelled
 THE EMISSIONS (E)
PRODUCED IN 1 YEAR FOR
EACH POLLUTANT k.

D −3
Ek = eTk d + eFK D(120X 10 )
q
 EMISSION LEVEL OF
MOLTEN ALUMININUM

D −3
E k = eTk ' d + eFK D(10 X 10 )
'

q
EMISSION LEVEL
ALUMINIUM MELTING
EMISSION
 PRODUCTION COST
Production costs (the differential
component considers only the ingot
solidification process):

CIS = ∑i =1 ∑J =1 ∑t =1[ Ingotijt cIS ]

N M T
 TRASPORTATION COST
Total transportation cost (both for
molten and solid metal supply):

molten(ij ) Ingotijt
CTR = ∑i =1 ∑ J =1 ( Tdij cTR + ∑t =1[
N M T
dij cTR])
q' q
GREEN SUPPLY CHAIN
RESULTS
RESULTS
The green supply chain and
product design
 Energy Efficiency

 Product Packaging

 Design for Upgradeability

 Design for Recyclability

 Materials Innovation
 Bibliography

• Bourke, Richard and Kempfer, Lisa.

“Achieving Success with Mass Customization:
The Vital Contribution of Engineering.”
Computer – Aided Engineering. (Oct 1999).

• Ham, Inyoung, Katsundo, Hitomi and Teruhiko,

Yoshida. Group Technology: Application to
Production Management. Boston, MA:
Hingham, 1985.
• Kroll, Denis and Wang, Xiaoli. “Using group
technology to improve quality and response
time.” Industrial Management. (July 1994).

• Manocher, Djassemi. “An efficient CNC

programming approach based on group
technology.” Journal of Manufacturing
Systems. (2000).