1. Supply Chains and the Environment Fuminori Toyasaki MKIDS Mini-Workshop September 10, 2003 The Virtual Center for Supernetworks

2. Change of environment problem characteristics Environment problems Local Specific industries Small uncertainty Present problem Global Unspecific industries Large uncertainty Future problem

3. From Supply Chains to Green Logistics Supply Chain + Environmental = Green Logistics criteria * Legislation Pressure * Consumer Pressure

4. My Research Areas * Supply chain modeling with emission minimization criterion * Supply chain modeling with E-cycling * Global supply chain with transboundary pollutions (future)

5. Supply Chain Supernetworks and Environmental Criteria Anna Nagurney and Fuminori Toyasaki Appears in Transportation Research: Transportation and the Environment

6. 1 i m 1 n j 1ki Manufacturers Retailers Demand Markets

7. Assumptions of this model Each manufactures and retailers 1. Maximizes its profit 2. Minimizes its emissions. Cournot-Nash oligopoly market.

8. A manufacturer’s muliticriteria decision- making problem Maximize Subject to

9. The optimality condition of the manufacturers

10. A retailer’s multicriteria decision- making problem Maximize Subject to

11. The multicriteria equilibrium conditions for demand market k modes For all retailers and For all manufactures

12. Variational Inequality Formulation

13. The Dynamics 1.Describe the manufactures’, retailers’ and consumers’ product and price adjustment. 2.Formulate the dynamic adjust process as a projected dynamical system.

14. Demand market price dynamics

15. Dynamics between the retailers and the demand markets

16. The projected dynamical system The dynamic model of the supply chain supernetwrok and environmental criteria can be formulated as follows: onto is the projection operator of is the initial point

17. . Stationary equilibrium points Theorem The set of stationary points coincides with the set of equilibrium points. Proof. See Dupuis and Nagurney (1993).

18. 1 1 1 2 2 2 Manufactures Retailers Demand Markets Numerical Examples

19. Change of environment criteria 3.4611 2.3907 3.3214 2.4309 3.1136 2.4250 3.1270 2.4347 13.03313.312713.4861 13.396 5.8513 5.7509 5.5362 5.5603 263.908264.047264.309 263.623 274.701274.820274.843 274.881 Total Emission 114.089112.918111.381 111.213

20. Increase in weights on environment criteria Total Emission111.2138110.5442105.860499.7104

21. 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.

22. Electronic Waste Management and Recycling: A Multitiered Network Equilibrium Framework for E-Cycling Anna Nagunrey and Fuminori Toyasaki

23. Movement of E-Cycling 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)

24. 1h 1i j 1 1 k r m n m+1 n+1 O+1 o Recyclers Processors Source of Electronic Waste Demand Markets Landfill

25. Assumptions of the model The sources minimize their costs The recyclers and the processors maximize their profits, respectively. Cournot-Nash oligopoly market.

26. The behavior of the sources Minimize Subject to :

27. Variational Inequality Formulation of the sources

28. Recyclers’ behavior Maximize Subject to

29. Processors’ behavior Maximize Subject to

30. The demand markets

31. Variational Inequality Formulation

32. Numerical Examples 1 2 1 23 1 23 3 1 2 Sources r Recyclers Processors Demand Markets Landfill

33. 10.00 9.53 0.00 0.95 10.00 20.00 19.06 0.00 10.00 20.00 76.26 0.00 231.79 372.47 40.67 247.97 212.24 45.40 279.99 274.28 242.14 Change of conversion rates

34. High demand and low demand 10.00 3.50 0.00 13.00 10.00 3.50 0.00 10.00 3.50 0.00 231.79 4.52 247.97 14.03 279.99 26.56

35. 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

36. Global Supply Chain Networks and Transboundary Emisssion Risk

37. Economic Globalization and Transboundary Pollution Economics globalization may exacerbate transboundary pollutions (Coperand (1995), Benarroch (2001) ) * Increase in volume of traffic * Relaxation of environment standards for helping domestic firms Transboundary pollution (pollution across boundaries) Carbon dioxides, methane, Chlorofluorocarbons (CFCs), Sulphur dioxide, Nitrogen oxides and so on

38. 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.

39. Thank You !!