2013
SESDE 2013 Proceeding
Environmental performance of global supply chains observed through extended material requirements planning simulation model
Authors: Danijel Kovacic, Marija Bogataj
Abstract
Every economy in the globalized world consists of a network of different supply chains. Supply chain is a complex system of various activity cells. Some of them correspond to production and others to distribution and consumption activities. The loop is closed when consumption and production subsystems are connected ? used items enter a new production cycle as recycled/reused inputs. Outputs of such system are waste products and pollution which is a result of any of the activities inside the supply chain. Extended Material Requirements Planning (EMRP) Theory provides a powerful tool capable of describing all of the relations in such complex systems. Theory uses input-output analysis for characterization of the structures; Laplace transforms for proper incorporation of lead times; and Net Present Value (NPV) calculation for proper evaluation of supply chain?s economic performance. This paper presents an analytical tool for simulations, which are essential to a deeper understanding of global supply chains, with emphasis on the environmental component.
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