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Supply Chains and the Environment. Fuminori Toyasaki MKIDS Mini-Workshop September 10, 2003. The Virtual Center for Supernetworks. Change of environment problem characteristics. Environment problems. Global Unspecific industries Large uncertainty Future problem. Local
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Supply Chainsand theEnvironment Fuminori Toyasaki MKIDS Mini-Workshop September 10, 2003 The Virtual Center for Supernetworks
Change of environment problem characteristics Environment problems Global Unspecific industries Large uncertainty Future problem Local Specific industries Small uncertainty Present problem
From Supply Chains to Green Logistics * Legislation Pressure * Consumer Pressure Supply Chain + Environmental = Green Logistics criteria
My Research Areas * Supply chain modeling with emission minimization criterion * Supply chain modeling with E-cycling * Global supply chain with transboundary pollutions (future)
Supply Chain Supernetworks and Environmental Criteria Anna Nagurney and Fuminori Toyasaki Appears in Transportation Research: Transportation and the Environment
Manufacturers i m 1 1 j Retailers n 1 k i Demand Markets
Assumptions of this model • Each manufactures and retailers 1. Maximizes its profit 2. Minimizes its emissions. • Cournot-Nash oligopoly market.
A manufacturer’s muliticriteria decision-making problem Maximize Subject to
A retailer’s multicriteria decision-making problem Maximize Subject to
The multicriteria equilibrium conditions for demand market k For allretailers and modes For allmanufactures
The Dynamics • Describe the manufactures’, retailers’ and consumers’ product and price adjustment. • Formulate the dynamic adjust process as a projected dynamical system.
The projected dynamical system The dynamic model of the supply chain supernetwrok and environmental criteria can be formulated as follows: is the projection operator of onto is the initial point
Stationary equilibrium points Theorem The set of stationary points coincides with the set of equilibrium points. Proof. See Dupuis and Nagurney (1993). .
Numerical Examples 1 2 Manufactures Retailers 1 2 Demand Markets 1 2
Summary • First rigorous mathematical supernetwork model which deals with multicriteria decision makers, include environmental one. • Developed both a static and a dynamic model. • Evaluated the equilibrium solutions as we changed the weight of the environmental criteria.
Electronic Waste Management and Recycling: A Multitiered Network Equilibrium Framework for E-Cycling Anna Nagunrey and Fuminori Toyasaki
63 million PC will be obsolete in 2003 in the U.S. About 10 million waste electric products are dumped per year in Japan. * Electronic wastes contain not only hazardous materials, but also precious ones. The Home Appliances Recycling Law in Japan (2001) Waste from Electrical and Electronic Equipment Directive (WEEE) in EU (2008) Movement of E-Cycling
Source of Electronic Waste 1 h r Landfill m m+1 1 i Recyclers Processors n n+1 Landfill 1 j O+1 Landfill 1 k o Demand Markets
Assumptions of the model • The sources minimize their costs • The recyclers and the processors maximize their profits, respectively. • Cournot-Nash oligopoly market.
The behavior of the sources Minimize Subject to :
Variational Inequality Formulation of the sources
Recyclers’ behavior Maximize Subject to
Processors’ behavior Maximize Subject to
Numerical Examples Sources 2 1 Recyclers Landfill r 1 2 3 Processors Landfill 1 2 3 Landfill Demand Markets 1 2 3
Summary • Proposed a rigorous E-cycling mathematical model * the endogenous equilibrium prices and material shipments between tiers. • Decision makers’ behavior in a bottom tier influences those in a upper tier. * influence of a bottom tier’s conversion rate. * influence of low demand. Sustainable E-cycling system
Global Supply Chain Networksand Transboundary Emisssion Risk
Economic Globalization and Transboundary Pollution Transboundary pollution (pollution across boundaries) Carbon dioxides, methane, Chlorofluorocarbons (CFCs), Sulphur dioxide, Nitrogen oxides and so on Economics globalization may exacerbate transboundary pollutions (Coperand (1995), Benarroch (2001) ) * Increase in volume of traffic * Relaxation of environment standards for helping domestic firms
Risks of transboundary pollution * No clear relationship between how much a country emits and how much is deposited there. * Hard to predict how much pollution travels from a country according to the natural conditions.