Pursuing Sustainability: OR/MS Applications in Sustainable Design, Manufacturing, Logistics, and Resource Management

Description

This handbook includes three parts, corresponding to the following three domains of OR/MS research related to sustainability: (i) Systems Design, Innovation, and Technology, (ii) Manufacturing, Logistics, and Transportation, and (iii) Sustainable Natural Resource Management. The first part of the handbook (Chapters 2-6) will focus on the creation and development of sustainable products, services, value chains, and organizations from a systems perspective. Key areas to be covered include Green Design & Innovation, Technology and Engineering Management, Sustainable Value Chain Systems, Sustainability Standards and Performance Evaluation, and Circular Economy and New Research Directions in Sustainability. The second part of the handbook (Chapters 7-11) will concentrate on the major operational and logistic issues faced by today’s industries in pursuing sustainability. Key areas to be covered include Remanufacturing, Reverse Logistics, Closed-Loop Supply Chains, Sustainable Transportation, and New Research Directions in Green Supply Chain Management. The third part of the proposed handbook (Chapters 12-16) will center on major sustainability issues in managing engineering infrastructure and natural resources. Key areas to be covered include Renewable Energy, Sustainable Water Resource, Biofuel Infrastructure, Natural Gas, and New Research Direction in Sustainable Resource Management. The handbook aims to bridge the three main OR/MS research domains in sustainability: “Systems Design, Innovation, and Technology,” “Manufacturing, Logistics, and Transportation,” and “Sustainable Natural Resource Management.” Traditionally, these domains are treated separately in the OR/MS literature. By combining the three domains, the handbook will provide a more holistic treatment of MS/OR methodologies to address critical sustainability issues faced by today’s society. Unlike most existing handbooks which only focus on current OR/MS research in sustainability within a domain, this handbook will include a concluding chapter in each of the three parts to discuss and identify potential future research directions in each of the three main domains. Contents Chapter 1: Pursuing Sustainability: An Interdisciplinary Perspective 1.1 Introduction 1.2 Part 1: Design, Innovation, and Technology 1.3 Part 2: Manufacturing, Logistics, and Value Creation 1.4 Part 3: Sustainable Natural Resource Management 1.5 Summary References Part I: Design, Innovation, and Technology Chapter 2: Green Product Development: Price Competition, Quality Choice, and First-Mover Advantage 2.1 Introduction 2.2 Literature Review 2.3 Model Structure 2.4 Simultaneous Games 2.4.1 Equilibria with Simultaneous Pricing, Quality, and Entry Decisions 2.4.2 Can Competition Benefit the Environment? 2.5 The First-Mover Advantage in Sequential Games 2.5.1 Price Competition and Role-Choosing Games 2.5.2 The First Mover Advantage in Green Product Development 2.6 Concluding Remarks 2.7 Appendix 1 (Proof of Proposition 1) 2.8 Appendix 2 (Technical Definitions of Price Cut Immune) 2.9 Appendix 3 (Proof of Proposition 4) 2.10 Appendix 4 (Proof of Proposition 5) 2.11 Appendix 5 (Proof of Proposition 6) 2.12 Appendix 6 (Proof of Proposition 7) 2.13 Appendix 7 (Proof of Proposition 8) References Chapter 3: Decision Support for Sustainable Supply Chain Management 3.1 Introduction 3.1.1 Motivation and Objectives 3.1.2 Article Structure 3.2 Sustainable Supply Chain Management 3.2.1 Defining Sustainable Supply Chain Management 3.2.2 Sustainability Considerations 3.2.2.1 Economic Considerations 3.2.2.2 Environmental Considerations 3.2.2.3 Social Considerations 3.2.3 Sustainable Supply Chain Characteristics 3.2.3.1 Sustainable Supply Chain Focus 3.2.3.2 Building Blocks for a Sustainable Supply Chain 3.3 Research Requirements on Decision Support 3.4 Decision Models 3.4.1 SSCM Transformation 3.4.1.1 Models of Transformation 3.4.1.2 SSCM Transformation Model 3.4.2 SSCM Maturity 3.4.2.1 Overview of Maturity Models 3.4.2.2 SSCM Maturity Model 3.5 Illustration of the SSCM Models 3.5.1 SSCM Progression 3.5.2 Case Illustration 3.6 Conclusion References Chapter 4: DEA Application in Sustainability 1996–2019: The Origins, Development, and Future Directions 4.1 Introduction 4.2 Review Methods 4.2.1 Data Source and Collection 4.2.2 Citation-Based Review Methods 4.3 Literature Overview 4.3.1 Publications Over Time 4.3.2 Publication Outlets and Scholarly Community 4.3.3 Research Analysis Unit and Application Area 4.3.4 DEA Methodologies Employed 4.4 Citation Chronological Graph and Local Main Path Analysis 4.4.1 Findings from Citation Chronological Graph 4.4.2 Findings from Local Main Path Analysis 4.5 Research Topic Clusters 4.5.1 Corporate Sustainability Assessment 4.5.1.1 Current Status of the Literature 4.5.1.2 Future Directions 4.5.2 Sustainability Composite Indicators Construction 4.5.2.1 Current Status of the Literature 4.5.2.2 Future Directions 4.5.3 Sustainability Performance Analysis 4.5.3.1 Current Status of the Literature 4.5.3.2 Future Directions 4.5.4 Regional Sustainable Development Assessment 4.5.4.1 Current Status of the Literature 4.5.4.2 Future Directions 4.6 Conclusion References Chapter 5: Sustainable Manufacturing and Technology: The Development and Evaluation 5.1 Introduction 5.2 Definitions and the Components of Sustainable Manufacturing 5.3 The Development of Sustainable Manufacturing 5.3.1 Green Manufacturing 5.3.2 Corporate Social Responsibility 5.3.3 Green Supply Chain 5.4 The Evaluation of Sustainable Manufacturing 5.4.1 Sustainability Criteria and Indicators 5.4.2 Steps in the Evaluation 5.4.3 Performance Analysis Techniques 5.5 An Industrial Case Study 5.6 Conclusion References Chapter 6: Circular Economy and New Research Directions in Sustainability 6.1 Introduction 6.1.1 Circular Economy and Sustainability 6.1.2 Concepts and Principles of Circular Economy 6.2 Literature Review 6.2.1 Goals and Strategies for Developing Circular Economy 6.2.1.1 Target Setting 6.2.1.2 Governmental Strategy 6.2.1.3 Operation Mechanism of Circular Economy 6.2.2 Business Models for Transition Toward Circular Economy 6.3 Assessment Tools 6.3.1 Material Flow Analysis and Related Analytical Approaches 6.3.2 Evaluation and Decision-Making Processes 6.4 Applications 6.4.1 Step 1 Framing 6.4.2 Step 2 Scoping 6.4.3 Step 3 Idea Generation 6.4.4 Step 4 Feasibility Assessment 6.4.5 Step 5 Business Case Development 6.5 Conclusion References Part II: Manufacturing, Logistics, and Value Creation Chapter 7: Sustainable Supply Chain Management: Research Pathways Based on Empirical Evidence from Chinese Automotive Companies 7.1 Theoretical Perspective on Corporate Sustainability (CS) 7.1.1 External Drivers of CS 7.1.1.1 Stakeholder Theory 7.1.1.2 Institutional Theory 7.1.2 Internal Motivations of CS 7.1.2.1 Resource-Based View (RBV) 7.1.2.2 Natural Resource-Based View (NRBV) 7.1.2.3 The Practice-Based View (PBV) 7.1.2.4 Dynamic Capabilities View (DCV) 7.2 Review of Empirical Studies on CS 7.3 Methodology 7.3.1 Case Company Profiles 7.3.2 Data Analysis 7.4 Findings 7.4.1 Within-Case Analysis 7.4.2 Cross-case Comparison Analysis 7.4.2.1 Auto End Assemblers vs. Parts Suppliers 7.4.2.2 Large Companies vs. Small Companies 7.4.2.3 Older Companies vs. Younger Companies 7.4.3 Propositions 7.5 Conclusion References Chapter 8: Inventory Management in Multi-echelon After-Sales Service Networks 8.1 Introduction 8.1.1 Structure of the Chapter 8.2 Literature on Repairable Items Inventory Systems (RIIS) 8.3 Literature on Inventory Systems with Product Returns 8.4 Inventory Systems with Remanufacturing 8.5 Analytical Models for the After-Sales Service Network 8.5.1 After-Sales Service Network 8.5.2 Analytical Modeling Approach 8.5.2.1 Case 1: ρ ≠ 1 8.5.2.2 Case 2: ρ = 1 8.5.3 Future Research Directions References Chapter 9: Towards a Unified Understanding and Management of Closed Loop Operations 9.1 Introduction 9.1.1 Significance of Closed Loop Supply Chains for Sustainability 9.2 Elements of “Closed Loop” Supply Chain 9.3 Remanufacturing and Waste Reduction in Closed Loop Supply Chains: Empirical Evidence 9.4 Decision Models for Cost-Effective Remanufacturing and Reuse 9.4.1 Consumer Owned Products Scenario 9.4.1.1 Consumer Valuation, New Product Sales and Remanufactured Product Demand 9.4.1.2 Buyback Acquisition, Volume and Profitability 9.4.1.3 Trade-in Acquisition, Volume, and Profitability 9.4.1.4 Relative Usefulness of Trade-in and Buyback Alternatives 9.4.2 Consumer Leasing and Renting Scenario 9.5 Role of Strategic and Organizational Alignment 9.6 Concluding Remarks References Chapter 10: Orchestrating Sustainable Stakeholder Value Creation: A Product Life Cycle Extension Perspective 10.1 Introduction 10.2 Firm Level Value Creation 10.3 Stakeholder Value Creation 10.4 Shared Value 10.5 Product Life Cycle Extensions and Circular Economy 10.6 Challenges to Circular Economy and Future Research Agenda 10.6.1 Integration Across Functions and Green Supply Chain Capabilities 10.6.2 Value Chain Considerations 10.6.3 Product Design and Product Recovery Design 10.6.4 Integration Across Network Partners 10.6.5 Green Human Capital and Organizational Culture 10.6.6 Networked Architecture 10.6.7 Success of a Product “Return” Model 10.7 Reinforcing Capabilities Loop References Chapter 11: Exercise Your Rs! You Never Know When You May Need Them: Revisiting and Extending Modes of Product Life for the Future 11.1 Introduction 11.2 Product Life Extension Modes 11.2.1 Recall 11.2.2 Repair: Maintain Post-failure 11.2.3 Repair: Maintain Pre-failure pReventative Maintenance 11.2.4 Repair: Maintain Pre-failure pRedictive Maintenance 11.2.5 Repair: Improve Existing Product 11.2.6 Restore (Refurbish) 11.2.7 Reuse 11.2.8 Remanufacturing 11.2.9 Recycle 11.2.10 Recover 11.2.11 Reduce 11.2.12 Redirect 11.2.12.1 Unique Operational Challenges to Rs 11.3 Need to Consider the Challenge that Rs Present to Functional Areas 11.4 Managerial Implications 11.4.1 Reviewing Firm Activity with Each of the 12 Rs 11.4.2 Reviewing Supply Chain Partner Activity with Each of the 12 Rs 11.4.3 Are Firms Outside Your Supply Chain Involved with Your Rs 11.4.4 SWOT for Each R 11.4.5 Strategic Redirection 11.4.6 Periodic Reassessment 11.5 Implications for Policy 11.6 Conclusion and Future Direction References Part III: Sustainable Natural Resource Management Chapter 12: Economic Management of Electric Power Systems 12.1 Dynamic Optimization 12.1.1 Deterministic Discrete Time 12.1.1.1 The Lagrangean Method 12.1.1.2 The Hamiltonian 12.1.1.3 Bellman Equations 12.1.1.4 The Pontryagin’s Maximum Principle 12.1.2 Deterministic Continuous Time 12.1.3 Example: Optimal Replacement 12.1.3.1 Optimality Conditions 12.1.3.2 Results and Sensitivity 12.2 Stochastic Optimization 12.2.1 Stochastic Dynamic Programming 12.2.2 Example, Optimal ESS Management, Representative Agent 12.2.2.1 Optimality Conditions 12.2.2.2 Optimal Feedback Policy 12.2.2.3 Analytical Solution 12.3 Stochastic Programming for Electric Power Systems 12.3.1 The Decision-Making Process 12.3.2 Example: Unit Commitment with Economic Dispatch 12.3.2.1 Scenario Construction 12.3.3 Markov Decision Processes 12.3.4 Further Reading Appendix 1: Discounted Value Hamiltonian Appendix 2: Hotelling’s Rule References Chapter 13: Reservoir Capacity Planning Using Stochastic Multiobjective Programming Integrated with MCMC Technique 13.1 Introduction 13.2 Methodology 13.2.1 Background 13.2.2 Framework 13.2.3 Data Analysis 13.2.3.1 Water Supply and Demand Analysis 13.2.3.2 Water Quality Monitoring and Water Quality Modeling 13.2.3.3 Investigation of Cost and Benefit Databases Total Cost Variable Costs Wastewater Treatment Cost 13.2.4 Optimization Analysis 13.2.4.1 Constraints for Water Resources Balance in Water Reaches 13.2.4.2 Constraints for Sizing and Reservoir Operation 13.2.4.3 Constraints for Water Quality in River Reaches 13.2.4.4 Constraints for Water Quality Regulation in River Reaches 13.2.4.5 Sensitivity Analysis 13.3 Results 13.4 Conclusions References Chapter 14: High-Resolution Multiobjective Optimization of Sustainable Supply Chains for a Large-Scale Lignocellulosic Biofuel Industry 14.1 Introduction 14.2 Method 14.2.1 Biofuel Supply Chain Configurations and Assumptions 14.2.2 Integrative Modeling Framework 14.2.3 Model Structure 14.3 Empirical Results 14.4 Conclusions References Chapter 15: Mathematical Models for Evolving Natural Gas Markets 15.1 Introduction 15.1.1 Understanding the Evolution of Natural Gas Markets 15.1.2 Modeling Approaches for Natural Gas Markets: Examples of Global and Regional Studies 15.2 Components of Natural Gas Supply Chain: Mathematical Formulation and Solutions Approaches 15.2.1 Upstream Sector 15.2.2 Midstream Sector 15.2.3 Downstream Sector: Use of Natural Gas by Demand Sectors 15.2.4 Solution Approaches for Natural Gas Models 15.3 Data Sources for Natural Gas Markets and Case Study 15.4 Outlook and Examples of Energy System Transformation References Chapter 16: Future Research Directions for Sustainable Natural Resource Management 16.1 Harnessing Results from Global Climate Models 16.1.1 Sea Level Rise Risk 16.2 Harnessing Variability and Unpredictability via Flexibility, Transmission and Storage 16.2.1 Flexible Generation 16.2.2 Expanded Transmission Availability 16.2.3 Storage Availability 16.3 Interdependence of Multiple Systems 16.3.1 Interdependence: A Case Study of Energy and Water Systems 16.3.1.1 Water Dependency of Electric Power Systems 16.3.1.2 Electricity Dependency of Water Systems 16.3.2 Interdependence Modeling and Methodologies 16.3.2.1 Existing Literature 16.3.2.2 Distributed Framework for Integrated System Modeling 16.4 Conclusions References Index