Green Supply Chain Operation Research Articles

Assessment of supply chain efficiency through a sustainable supply chain management strategy in the textile sector

The textile industry processes fiber into yarn or fabric. Problems often faced by textile companies are delays in raw materials, which result in the production and distribution of fabrics not reaching the target, so consumers are unsatisfied and switch to competing companies. In addition, solid waste from the production process is still disposed of, potentially polluting the environment. This study uses the Green Supply Chain Operation Reference (Green SCOR) approach to evaluate the performance of green supply chain management (GSCM) in textile companies located in Yogyakarta. The findings of this study could significantly impact the textile industry as they provide a comprehensive evaluation of GSCM performance. Twenty-two performance indicators have been validated using the Item-Content Validity Index (I-CVI) method and weighted using the Analytical Hierarchy Process (AHP) method. Based on the calculation results, the GSCM performance value is 60.208. Improvement recommendations are given for three indicators that need to be prioritized based on Importance Performance Analysis (IPA) matrix mapping and the actual condition of the company. Improvements can be made by using the Vacuum Flash Evaporation method so that recycled PVA can be reused, using natural materials or alternative auxiliary materials that are more environmentally friendly, increasing cooperation with companies engaged in processing weaving waste or textile waste appropriately and effectively, checking the concentration of starch solution not only when changing construction but every beam change, and forming a checklist form that is filled in for monitoring after machine settings and preparation of the production process.

Exploring Industrial Engineering Knowledge and Environmental Sustainability

This research identifies the relationship between industrial engineering and environmental sustainability knowledge components. A combination of a systematic literature review (SLR) and applied thematic analysis (ATA) is employed to uncover the pertinent literature associated with the purpose of this research. Whilst various forms of strategies, theories, methods, and practices were uncovered in each of the knowledge components, only a few were overlapping. These overlapping components include green supply chain operations, circular economy, and technology management. This study is the first in a series of studies contextualising industrial engineering knowledge in terms of its applicability to environmental sustainability. These results reveal concepts from industrial engineering and environmental sustainability knowledge components that can be used to systematically design methodologies or practically implement them in an industry or organisation. Methods and practices were a dedicated theme in the analysis, and these can be used by practitioners. A circle packing diagram is crafted using the IISE Body of Knowledge as a means of categorisation. This study considered industrial engineering as a catalyst in creating new forms of transdisciplinary knowledge areas. It also considers how industrial engineering knowledge can contribute to meeting environmental challenges.

Mitigating yield uncertainty from the perspectives of contract manufacturing and technology licensing

In the low-carbon environment, green manufacturing by manufacturers often requires upstream to provide precision components. However, the lack of production experience of high-tech upstream leads to yield uncertainty. To explore the impact of yield uncertainty on green supply chain operations and analyze its solution, we propose a contract manufacturing mode with technology licensing and further consider pricing licensing or production licensing. The Stackelberg game is employed to construct these three models and a benchmark model without contract manufacturing. Moreover, we discuss the supplier’s mode preference by numerical analysis. Our findings reveal that the contract manufacturing mode with technology licensing mitigates the detrimental influence of yield uncertainty, boosting supplier profitability by 49.00% and manufacturer profitability by 61.76% when the expected yield rate is small or the expected yield rate is large with a small yield fluctuation. Furthermore, when both expected yield rate and profit-sharing ratio are low, increased yield fluctuation predominantly affects the downstream, whereas a win–win–win situation can be achieved through increased profit-sharing ratio. Additionally, compared with contract manufacturing mode with technology licensing, additional pricing licensing or production licensing augments supplier profitability by more than 10.56% in certain cases. Interestingly, improving production efficiency may not enhance the contract manufacturer profitability in both modes due to potential trade-offs with competition and the high cost. This paper contributes to the development of contract manufacturing policies, guiding suppliers and contract manufacturers towards achieving synergetic economic and environmental development. Future research could examine the applicability of the proposed contract manufacturing mode in various industries or identify additional factors affecting supplier profitability.

The influence of agility on green purchasing practices: the role of supplier governance and supplier relationships

PurposeThis paper aims to illuminate the nuanced dynamics of green supply chain management (GSCM), specifically focusing on the intersections of supplier relationships, supplier governance and organizational agility. Recognizing a gap in the understanding of how these elements confluence to promote green purchasing, the paper uses a quantitative study on data collected from the Australian food industry. Advanced analysis techniques provide empirical evidence underscoring the pivotal roles these elements play, expanding on current GSCM literature within a resource-based view.Design/methodology/approachThis study, based on a questionnaire sent to Australian food professionals, used higher-order reflective constructs to assess supplier relationships and governance. Data was analyzed using partial least squares structural equation modeling and Hayes PROCESS, considering factors like firm revenue and manager experience. Both the reliability of measures and mediation hypotheses were stringently validated using established guidelines.FindingsThe comprehensive study validated supplier governance's key influence on green purchasing and supplier relationships. Notably, organizational agility emerged as a crucial mediator, underscoring the interplay of these constructs. Concurrently, the reflective measurement model exhibited robust validity and reliability. Interestingly, demographic factors such as company size, revenue and managerial experience showed no discernible impact on green purchasing practices.Practical implicationsIn the Australian food sector, supplier governance and relationships are pivotal for advancing green purchasing. This study emphasizes the value of organizational agility in amplifying these practices. Managers, when aligning with supplier relationships enhanced by communication and mutual aid, can foster robust green initiatives. Embracing these insights and the critical importance of supplier governance, managers can drive more sustainable, informed supply chain decisions in the industry.Originality/valueIn pursuit of understanding the relationship between supplier governance, supplier relationships and green purchasing, this research uniquely situates itself within the resource-based view (RBV) to reveal critical theoretical and practical implications. By focusing on the Australian food industry, the study spotlights the often-overlooked mediating role of organizational agility in linking supplier relationships with green purchasing efforts. In doing so, this research not only strengthens the argument for fortified supplier relationships – as a catalyst for enhancing agility and thereby green practices – but also re-contextualizes the RBV in a fresh light. This new perspective provides managers with an enriched model, emphasizing the imperative of solid supplier governance for sustainable, agile and green supply chain operations in the food domain.

Supply Chain Performance Measurement: The Green Supply Chain Operation Reference (SCOR) Approach

Purpose: This study aims to design metrics and implement supply chain performance measurements of upstream textile companies in Indonesia using the Green Supply Chain Operation Reference (SCOR) perspective approach. Methods: The design and measurement approach uses Green SCOR based on metrics developed by APIC. The weighting of level one and level two assessment metrics using the Analytical Hierarchy Process (AHP) method is based on the results of questionnaires from 20 upstream textile companies spread across the island of Java. Results and discussion: The main findings show that supply chain performance in the upstream sector of textile companies in Indonesia can be classified as good if measured using a supply chain performance metric design with the Green Supply Chain Operations Referendum approach. Opportunities to improve performance in the plan, source, make, delivery, and return aspects using Green SCOR's best practices in the textile industry. Implications of the research: The study's limitations did not include the financial aspects of the company, so it cannot provide a complete picture of the company's supply chain performance. Originality/value: The knowledge gained from this study is an important reference for managers of upstream textile companies to improve the company's green supply chain performance in the future. Managers can set improvement priorities based on the results of performance measurements on the dimensions of reliability, responsiveness, flexibility, and environmental aspects based on the metrics designed by the researcher. In addition, the design of this metric can be used by companies in the medium and downstream textile industry to improve the overall green supply chain performance of the textile industry.

Blockchain sharding for e-commerce supply chain performance analytics towards Industry 5.0

ABSTRACT In today’s competitive and volatile e-commerce markets, effective supply chain performance measurement (SCPM) gradually becomes essential for investigating pitfalls and loopholes in strategic vendor management and business development. Surrounding the atmosphere of Industry 5.0, sustainability and resilience are two primary pillars, which should be further considered in the SCPM beyond merely operational effectiveness and efficiency. This study customises evaluation criteria based on the green supply chain operations reference model. Moreover, a blockchain sharding-enabled performance analytics system is designed, where a real-life case analysis is conducted to verify the system efficacy. Consequently, the supply chain sustainability and resilience can be fostered.

Research on Green Transformation of Enterprises from the Perspective of Innovation Driving

This paper takes Zhejiang Zhongguang Electric Group Co.Ltd. as an example to explain how enterprises overcome the problems faced in the transformation of green manufacturing, take innovation-driven green manufacturing as the primary premise, and become the pathfinder of innovation-driven green manufacturing in the manufacturing industry. The research in this case found that CGE adheres to the “innovation” driven development, and strives to create a development model of “one main body, innovation driven and five integration” with itself as the main body, innovation driven and five integration complemented; Through the construction of green factories, the design of green parks, the research and development of green products and the operation of green supply chain, the in-depth development of innovation is promoted in an orderly manner, providing valuable experience for the organic integration of green manufacturing and sustainable development. At the same time, the strategic layout of Zhongguang Electric is also improving day by day, constantly pursuing enterprise growth and technological breakthroughs, and integrating green management into enterprise management, product design and production.

Green Supply Chain Performance Analysis of Cowhide Crackers Industry

Cowhide crackers Small and Medium-sized Enterprises (SMEs) process beef skin crackers as a home-based business. However, their supply chain faces challenges due to unstructured activities. Waste management, particularly cowhide and used water disposal, is inefficient. Research aims to evaluate performance indicators, measure green supply chain performance, and assess supply chain maturity. The methods employed include Analytical Hierarchy Process (AHP), Green Supply Chain Operation Reference (GSCOR), and Process Maturity Model (PMM). Results indicate a green supply chain management score of 58.901, with an average performance level influencing a maturity model value of 3.95. This places supply chain performance in the “managed and measurable” category. Three indicators, including recyclable percentage, cycle time, and environmental performance standards, have values below 50, necessitating improvement proposals. The research highlights areas for enhancement to enhance efficiency and sustainability in the cowhide crackers SMEs’ supply chain, crucial for long-term success and environmental responsibility.

Towards Sustainable Batik Production: A Green SCM Evaluation and Improvement Recommendations

Kampung Batik Laweyan Solo in Central Java is a renowned center of batik industry in Indonesia. Companies there, including Batik Mahkota Laweyan, are involved in environmental issues throughout the supply chain, from raw material procurement to final production. Major challenges include direct waste disposal into rivers, excessive water usage, and inefficient use of synthetic dyes and waxes. This study aims to evaluate the performance and maturity of Green Supply Chain Management (GSCM) at Batik Mahkota Laweyan. Primary and secondary data were collected and analyzed using tools such as Green Supply Chain Operation Reference (GSCOR), Analytical Hierarchy Process (AHP), and Process Maturity Model (PMM). The research findings indicate a GSCM performance of 53.327 and a maturity level of 4.308. The company needs to improve three Key Performance Indicators (KPIs): electricity usage savings, efficient use of WWTP, and efficient water usage through recycling uncontaminated wash water. Thus, this study provides insights into how the batik industry can enhance environmental sustainability within its supply chain.

Analysis of Green Supply Chain Management Performance Measurement in the Tofu Processing Industry (Case Study: Kampung Tahu-Tempe Selili)

Kampung Tahu-Tempe Selili is one of the industrial areas in Samarinda City that produces tofu and tempeh. In the production activities of this area, waste is still dumped into the Mahakam River. The problems include improper raw material sourcing, pollution that disturbs the surrounding residents due to the production process, lack of waste management, and the presence of defective tofu either after production or during delivery to consumers. The research Objective is to improve the supply chain activities using the Green Manufacturing approach. This study utilizes the Green Supply Chain Operations Reference (GreenSCOR) model with a focus on the production process. There are 8 Green Objectives with 15 Key Performance Indicators (KPIs) that will be weighted for each KPI using the Analytical Hierarchy Process (AHP) method. Furthermore, data on the actual realization values of the KPIs are collected from 25 factories located in Kampung Tahu-Tempe Selili. The calculation is performed using the Snorm de Boer method to normalize the actual data, and the Traffic Light System (TLS) method is used to categorize the KPI performance. Based on the calculation of weights and normalization values, the performance score of Kampung Tahu-Tempe Selili is 69.85, KPIs MR-03 and MR-04 are problems faced by all factories and are categorized as red. Factory conditions that cannot treat liquid waste and waste in water use, so that steps that can be taken by the factory reuse residual water for needs that do not involve direct contact with food which can reduce water demand. Then work with the local government to build a waste end treatment plant which can later be processed into alternative biogas fuel.

Research on the Influence of Green Degree on the Decision of Extended Warranty Service Supply Chain

The green supply chain not only relies on the manufacturer to provide green products, but also requires the supply chain members to provide green services. As a kind of green services, the extended warranty service can further expand the life cycle of products and reduce the frequency of products being eliminated due to damage. According to the existing literature research results, this paper finds that the influence of green degree on the enterprise's product green management strategy is gradually transferred to the product and service supply chain, and finally forms the green supply chain operation mode combining green production and green service. This paper analyzes the influence of product greenness and extended warranty service greenness on supply chain pricing strategy, and draws the following conclusions: Excessive green input will lead to the increase of extended warranty service price, resulting in the loss of consumers who buy extended warranty service. While reducing the green degree is good for enterprises to reduce costs, but low green will dampen the enthusiasm of consumers to buy products and the extended warranty service, and this will have a negative impact on the reputation of the company and the product. Therefore, this paper puts forward the suggestion that enterprises should consider the comprehensive effect of green degree and extended warranty service price, and set a reasonable green degree to improve the overall profit of supply chain.

Green Supply Chain Coordination Considering Carbon Emissions and Product Green Level Dependent Demand

As traditional supply chains face increasingly severe environmental issues, and as countries promote green development and sustainable development policy concepts, cultivating green supply chain operation models is gradually coming to be highly valued by governments and enterprises. Generally speaking, the production of green products incurs higher additional costs, and thus, their total production costs also increase. In this work, we studied the coordination mechanism, by considering carbon emissions and product green level dependent demand, in which the product green level is related to the random demand. Under the green supply chain buyback contract with the green product R&D cost sharing between the manufacturer and the retailer, both the product green level and the order quantity need to be decided, to maximize the channel profit. In order to coordinate the green supply chain, the manufacturer needs to share both the risk of good salvage and the green product R&D cost with the retailer. We found that both the wholesale price and the buyback price increase in the manufacturer’s proposition of the green product R&D cost, but decrease in the emission reduction efficiency coefficient or carbon trading price. In addition, the product green level, the optimal order quantity and the channel profit increase in the emission reduction efficiency coefficient, but decrease in the R&D cost coefficient of the product green level. Interestingly, we found that if the carbon trading price is low, the manufacturer will set a low product green level, and the product carbon emission trading is a cost for the supply chain. The increment of the carbon trading price leads to a higher cost, such that the channel profit is decreased. However, if the carbon trading price is high, the manufacturer will set a high product green level, and the product carbon emission trading is a revenue for the supply chain. The increment of the carbon trading price leads to a higher revenue, such that the channel profit is increased.

PERANCANGAN MODEL PENGUKURAN KINERJA GREEN LOGISTICS DENGAN METODE GREEN SUPPLY CHAIN OPERATIONS REFERENCE

PT X is a logistics company that has been operating in Indonesia since 2015. This company, based on the observations, has already been aware of green logistics business process as they partner with Kamibox for solid waste processing and with Blitz for the operation of green-fuel vehicles. However, the company has not applied any performance measurement in their green logistics business. The measurement was designed using qualitative method, from which indicators based on the Green Supply Chain Operations Reference (GreenSCOR) were acquired. The components of GreenSCOR used in this research are Source, Deliver, Return, dan Waste Management. This research results in ten Key Performance Indicators. Then, based on the preset performance measurement, the score of the Green Logistics performance is 89, categorized as good. Further, three indicators were found to have values that are lower than the average; they are K1 (yellow category) and K8 and K10 (red category). The output of this research is a design of Green Logistics performance measurement recommended to the company for application.

Dual-Channel Pricing Decisions for Product Recycling in Green Supply Chain Operations: Considering the Impact of Consumer Loss Aversion.

With the vigorous rise of online third-party recycling platforms, dual-channel recycling has become the primary recycling mode in the reverse supply chain (RSC). However, as the main body of recycling, consumers have a significant impact on the recycling process, and their behavioral preferences are rarely considered in the pricing decision of the reverse recycling supply chain. Based on the dual-channel RSC, this paper considers the competition among channels. It introduces the loss aversion behavior preference of consumers to establish a dual-channel RSC composed of remanufacturers and online and offline recyclers. This study aims to analyze the impact of consumers' loss aversion behavior on the recycling pricing and profit of each node in the green RSC and discuss the decision of recyclers under consumers' loss aversion behavior. The results show that the deeper consumers' aversion to the loss of recycling price, the lower the recycling price of dual-channel recyclers will be, which will be more conducive to the increase in the profit of online recyclers. However, the profit of remanufacturers will be reduced, and the total amount of recycling will decline. This paper considers the impact of consumer loss aversion behavior on dual-channel reverse supply chain pricing decisions based on prospect theory. It provides references for chain members to set recycling prices to increase people's enthusiasm for recycling and the amount of recycled scrap, contributes to the cause of resource conservation and environmental protection, and improves the economic efficiency of recycling enterprises.

Green Supplier Selection Based on the Combination of Fuzzy SWARA (SWARA-F) and Fuzzy MARCOS (MARCOS-F) Methods

The green supply chain operations try to minimize environmental impact over the product's lifetime including product recycling or use, reduction of harmful substances, resource saving, green design, etc. Supplier selection is the vital issue in green purchasing. This paper aims to develop applicable and efficient methodology for green supplier selection. The proposed methodology includes the combination of Fuzzy Stepwise Weight Assessment Ratio Analysis (SWARA-F) and Fuzzy Measurement Alternatives and Ranking according to the COmpromise Solution (MARCOS-F) methods. Fuzzy extensions of these methods are preferred because of the complexity of the green supplier selection problem and inclusion of both quantitative and qualitative criteria. Also, these criteria may be uncertain and conflict with each other. It is the first time that SWARA-F is combined with MARCOS-F for the green supplier assessment and selection of the best one among them. The effectiveness of the proposed methodology is demonstrated by solving the real selection problem of a company from textile industry. In the problem both classic and green criteria including main and sub-criteria are considered. SWARA-F is used for weighting the evaluation criteria and the rank of each green supplier alternatives is obtained from incomplete information by assessment score calculated from MARCOS-F. The effectiveness of the combination of two methods is verified by sensitivity and comparative analyses. The proposed methodology provides acceptable and satisfactory results in determining the best green supplier namely improving the environmental and cost efficiency evaluation process.

Green Supply Chain Operations Decision and Government Subsidy Strategies under R & D Failure Risk

The behavior of enterprises upgrading green technology presents a certain risk of failure. In this paper, the probability of R & D failure that is not considered in most articles is introduced into the model, and the supply chain composed of green product manufacturers and retailers is considered. The optimal operation decision of the green supply chain under the two modes of government subsidizing manufacturers’ R & D costs and subsidizing green product production costs is analyzed. Under the same subsidy expenditure, this study examines which subsidy method can maximize social welfare. The results show that, when the production cost of green products developed by manufacturers is high, if the government budget is low, the production cost of green products shall be subsidized; if the government budget is high, the manufacturer’s R & D cost should be judged. If the R & D cost is high, the production cost of green products should be subsidized to encourage retailers to order more green products. However, if the R & D cost is low, the R & D cost of green products should be subsidized to encourage manufacturers to invest the most in R & D. When the production cost of green products developed by manufacturers is low, the production cost of green products should be subsidized no matter the R & D cost of manufacturers. Additionally the conclusion has been verified by the actual case.

Decisions and Coordination of Green Supply Chain Considering Big Data Targeted Advertising

The application of big data targeted advertising in the green supply chain makes the green marketing of products more accurate and effective. This paper applies game theory to study the decisions and coordination issues of a green supply chain in which the online retailer conducts big data targeted advertising. A centralized model and two Stackelberg game models (an online-retailer-led decentralized model and a manufacturer-led decentralized model) were constructed and solved. The zero wholesale price-side-payment contract and greedy wholesale price-side-payment contract were introduced into the green supply chain for coordination. The study found that: (1) the increase in demand attenuation coefficient, green sensitivity coefficient, and big data targeted advertising sensitivity coefficient will be beneficial to the growth of total consumer demand, supply chain profit, and environmental benefit; (2) supply chain coordination is necessary because greenness, demand, supply chain profit, and environmental benefit under the centralized model are higher than those under two decentralized models; (3) two contracts can achieve the coordination of the green supply chain, and the profits of the manufacturer and online retailer under the contract are greater than those under the decentralized model. The results can provide insights for promoting green supply chain operations.

Assessing Green Supply Chain OperationReference with Life Cycle Inventory: The Case ofGamboeng Green Tea, Indonesia

This study aims to assess the performance of the Gamboeng green tea production system using the Green Supply Chain Operation Reference (GreenSCOR). Fifteen environmental performance indicators were incorporated in the five main processes in the supply chain: planning, sourcing, production, delivery and return. The data were collected from field observations of the supply chain structure and flow process inventory, then validated through in-depth interview with key informants. Data inventory of processes was utilized for measuring several indicators especially in the planning process and the realization of the plan in the production process. Gamboeng tea has an advantage score in indicator of realization (15%) for use of clean energy source (i.e., wood pellet) to substitute liquified petroleum gas as well as for using environmentally friendly packaging, zero waste disposal and total recyclable waste. Further improvements are recommended for the five performance indicators, particularly in the planning process, such as providing training and education for personnel about environmental awareness and management, planning for minimizing water usage, planning in minimizing inorganic fertilizer usage, screening suppliers, and using larger portions of wood pellets.

Green Supply Chain Performance Measurement using Green SCOR Model in Agriculture Industry: A Case Study

The agriculture industry has proliferated in the last decades, increasing the envi­ron­mental footprint. Several development concepts include integrating the ecological aspect into the supply chain to reduce environmental degradation. In implementing the idea, companies in the agriculture industry need to evaluate their performance in the environmental area. This measure­ment uses the Green Supply Chain Operations Reference (GSCOR) Model that provides its entire supply chain aspect. This study demonstrates that the enable parameter criterion, which shows the magnitude of employee management toward environmental requirements, significantly impacts supply chain performance. Other criteria are also critical, such as a plan that considers every entity's usage and a source that considers the supply of the entities. The performance measurement produces a 6.357 value in the yellow color category with an average condition in the company. It produces three key performance indicators (KPI), such as water usage, percentage hazardous materials in inventory, and percentage hazardous waste, with a red classification that should be improved.

Pengukuran kinerja green manufacturing pada industri tahu sumedang untuk meningkatkan kinerja terhadap lingkungan menggunakan GSCOR dan LCA

The application of an environmentally sound industry is one of the environmental conservation issues and a global issue in the industry. The application of an environmentally sound industry can be implemented in the Green Manufacturing system. The tofu industry in the production process uses a high volume of water, resulting in a high volume of liquid waste, which can pollute the environment. The problem with the Sari Kedelai industry is that there has not been a performance measurement on the environment and an analysis of the resulting impact. This study aims to measure the performance of Green Manufacturing with the GSCOR (Green Supply Chain Operations Reference) and LCA (Life Cycle Assessment) methods as well as formulate suggestions for improvements to the Sari Kedele industry in the context of implementing Green Manufacturing. The results of performance measurement using the GSCOR method in the Sari Kedele industry has a value of 79.78 which was included in the good category. Environmental impact analysis is assessed with a focus on GHG emissions (Greenhouse Gases) that uses LCA with an ISO 14040 approach resulting in a GHG emission value of CO2-eq/kg tofu of 3.7107.