This is the accepted version of the paper.This version of the publication may differ from the final published version. Abstract: There has been considerable research on the environmental impact of supply chains but most of this has concentrated on the transport elements. The environmental impact of warehousing has received relatively little attention except within the context of distribution networks. A high proportion of total warehouse emissions emanate from heating, cooling, air conditioning and lighting and these aspects are largely related to warehouse size. This in turn is greatly influenced by inventory management, affecting stockholding levels, and warehouse design, affecting the footprint required for holding a given amount of stock. Other emissions, such as those caused by material handling equipment, are closely related to warehouse throughput and equipment choice. There is a substantial gap in the literature regarding this interaction between inventory and warehouse management and its environmental impact. The purpose of this paper is to contribute to filling this gap. Therefore, an integrated simulation model has been built to examine this interaction and the results highlight the key effects of inventory management on warehouse-related greenhouse gas emissions. In particular, it is found that decisions on supply lead times, reorder quantities, and storage equipment all have an impact on costs and emissions and therefore this integrated approach will inform practical decision making. Additionally, it is intended that the paper provides a framework for further research in this important area.
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This is the accepted version of the paper.This version of the publication may differ from the final published version. Abstract: Storage and transportation of goods within global supply chains is a major cause of environmental damage in modern value added processes. Thus, in the past, theory and practice developed several approaches in order to decrease these negative environmental impacts that frequently counteract the traditional efficiency-oriented ambitions. However, in many cases the economic and environmental performance can be improved at the same time.
Permanent repository linkAs many activities in logistics and inventory management are related to the treatment of potential uncertainties in the system by establishing redundancies, the reduction of uncertainty has equally a positive impact on both performance measures. To investigate the interrelation between uncertainty and the economic and environmental performance of supply chains, a serial inventory system consisting of a manufacturer who works with overseas suppliers and a carrier is considered, whereas the carrier is able to reduce lead time uncertainty. The relationships between uncertainties and the economic and environmental performance of the considered inventory system are highlighted by a simulation study based on empirical data from an international container shipping supply chain.
We develop a dynamic model that can be used to evaluate supply chain process improvements, e. g. different forecast methods. In particular we use for evaluation a bullwhip effect measure, the service level (fill rate) and the average on hold inventory. We define and apply a robustness criterion to enable the comparison of different process alternatives, i. e. the range of observation periods above a certain service level. This criterion can help managers to reduce risks and furthermore variability by applying robust process improvements. Furthermore we are able to demonstrate with our research results that the bullwhip effect is an important but not the only performance measure that should be used to evaluate process improvements.
The paper aims to explore the relationship between time-related variables in global ocean transportation networks (GOTNs) and the shipper's inventory management performance. We modelled fill rates with daily and weekly sailings, and analysed the impact of variability on these on the shipper's inventory management system. Design/ methodology/approach: We conducted simulation modelling of the above variables, and supplemented these by means of interviews with executives in a number of liner operators, 3PLs, freight forwarders and a large automotive shipper. Findings: Improvements in variability have different impacts, depending on the source of the variability and the frequency of the shipments. The highest inventory reduction potential arises from a combination of high reliability and improved frequency. Practical Implications: We have demonstrated the potential advantages of reduced variability and improved frequency of sailings. We have positioned port-to port (P2P) in the context of door-to-door (D2D) supply chain movements.
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