IngentaConnect Supply chain networks with corporate social responsibility throug...

Authors: Cruz, J. M.¹; Matsypura, D.²

Source: International Journal of Production Research, Volume 47, Number 3, January 2009 , pp. 621-648(28)

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Abstract:

In this paper we develop a framework for the modeling and analysis of supply chain networks with corporate social responsibility through integrated environmental decision-making. We consider the multicriteria decision-making behaviour of the various decision-makers (manufacturers, retailers, and consumers), which includes the maximization of net returns, the minimization of emissions (waste), and the minimization of risk. Increasing levels of social responsibility activities between decision-makers are assumed to reduce transaction costs, waste, as well as risk. We derive the optimality conditions, define the equilibrium state for the supply chain network, and derive the equivalent finite-dimensional variational inequality, the solution of which yields the equilibrium product flows transacted between the tiers of the supply chain network as well as the nodal prices. We then utilize the variational inequality formulation to provide qualitative properties of the equilibrium flow and price patterns and to propose a computational scheme, which is then applied to compute the solution to several numerical examples.

Keywords: Supply chain; Networks; Environment; Corporate social responsibility; Risk management; Multicriteria optimization

Document Type: Research article

DOI: 10.1080/00207540701513901

Affiliations: 1: Department of Operations and Information Management, School of Business, University of Connecticut, Storrs, CT 06269-2041, USA 2: Discipline of Econometrics and Business Statistics, Faculty of Economics and Business, The University of Sydney, NSW 2006, Australia

Supply chain networks with corporate social responsibility through integrated environmental decision-making