International Series in Operations Research & Management Science Turan Paksoy · Gerhard-Wilhelm Weber Sandra Huber Editors Lean and Green Supply Chain Management Optimization Models and Algorithms International Series in Operations Research & Management Science Volume273 SeriesEditor CamilleC.Price StephenF.AustinStateUniversity,TX,USA AssociateSeriesEditor JoeZhu WorcesterPolytechnicInstitute,MA,USA FoundingSeriesEditor FrederickS.Hillier StanfordUniversity,CA,USA Moreinformationaboutthisseriesathttp://www.springer.com/series/6161 Turan Paksoy • Gerhard-Wilhelm Weber (cid:129) Sandra Huber Editors Lean and Green Supply Chain Management Optimization Models and Algorithms 123 Editors TuranPaksoy Gerhard-WilhelmWeber DepartmentofIndustrialEngineering PoznanUniversityofTechnology KonyaTechnicalUniversity Poznan,Poland Konya,Turkey SandraHuber DepartmentofLogisticsManagement HelmutSchmidtUniversity Hamburg,Germany ISSN0884-8289 ISSN2214-7934 (electronic) InternationalSeriesinOperationsResearch&ManagementScience ISBN978-3-319-97510-8 ISBN978-3-319-97511-5 (eBook) https://doi.org/10.1007/978-3-319-97511-5 LibraryofCongressControlNumber:2018959616 ©SpringerNatureSwitzerlandAG2019 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartof thematerialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation, broadcasting,reproductiononmicrofilmsorinanyotherphysicalway,andtransmissionorinformation storageandretrieval,electronicadaptation,computersoftware,orbysimilarordissimilarmethodology nowknownorhereafterdeveloped. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevant protectivelawsandregulationsandthereforefreeforgeneraluse. Thepublisher,theauthorsandtheeditorsaresafetoassumethattheadviceandinformationinthisbook arebelievedtobetrueandaccurateatthedateofpublication.Neitherthepublishernortheauthorsor theeditorsgiveawarranty,expressorimplied,withrespecttothematerialcontainedhereinorforany errorsoromissionsthatmayhavebeenmade.Thepublisherremainsneutralwithregardtojurisdictional claimsinpublishedmapsandinstitutionalaffiliations. ThisSpringerimprintispublishedbytheregisteredcompanySpringerNatureSwitzerlandAG Theregisteredcompanyaddressis:Gewerbestrasse11,6330Cham,Switzerland Foreword Recent studies demonstrate that (Garza-Reyes, J. A., et al. 2018,IJPE, 200, 170– 180) there is a strong relationship between lean and green, and the integrated use of lean and green tools and methods creates a synergy in organizations and increasesbothoperationalandenvironmentalperformancesimultaneously.Thisis not surprising! Because waste reduction (materials, water, energy etc.), which is one of the main objectives of lean philosophy, is also directly related to green philosophy. Leanandgreenmanufacturingphilosophyandtechniquesfacilitatecompaniesto improvetheirbusinessperformanceintermsofreducingmanufacturingleadtimes andcostsandimprovingonproductqualityandon-timedeliveryperformancewhile becominggreenerbyminimizingmaterialusageandwasteandapplyingrecycling andreuse. Thus,whileaimingateliminationofwastes,bothleanmanufacturingandgreen manufacturing work for a common purpose: sustainability. Lean approach pro- posestoeliminatethetraditional“sevendeadlywastes”(transportation,inventory, motion,waits,overproduction,overprocess,anddefects)foramoreefficientwork- place and achieving operational excellence. Meanwhile, green approach suggests elimination of environmentalwastes, minimization of usage of earth sources, and reuseandrecycleofproductsandmaterials. In otherwords,leanandgreenSCM supportssustainabilityin accordancewith thetriplebottomlineapproach: 1. Economicimpact;byincreasingproductivity 2. Socialimpact;bygeneratinghuman-centricworkplaces 3. Environmentalimpact;byeliminatingwastesandreducingmaterialusage. Inthisbook,LeanandGreenSupplyChainManagement:OptimizationModels andAlgorithms,Iandmycolleaguestrytodrawacomprehensivepictureofleanand greensupplychainmanagement.Thepurposeofthisbookistodeeplyinquirethe synergybetweenleanandgreenissuesandcomprehensivelyexposetheemerging- cuttingedgeissuesrelatedtooriginal,innovative,andnovelreal-worldapplications of the emerging area of the lean and green supply chain management. The book v vi Foreword chaptersfocusonnewdevelopmentandcontributionofcurrentresearchtothebody oftheknowledgeintheareasofleanandgreensupplychainmanagement,supported bymodeling,operationalresearch,andoptimization.Allchaptersinthebookcanbe groupedunderfourmainparts:LeanandGreenSupplyChainOptimization,Lean andGreenSupplierSelection,LeanandGreenVehicle/FleetManagement,andLean andGreenOperationsManagement. Thecontributingauthorsofthisbookareexperiencedscientistsandpractitioners from different countries; they use and further refine the model-based methods of operationsresearch,algorithms,andheuristics. To all the authors of these valuable chapters, I extend my appreciation and gratitudeforhavingsharedtheirdevotion,knowledge,andvisionwiththeacademic communityandmankind.Ialsowouldliketothankalltherefereesfortheirvaluable timeandgreateffortinreviewingallthebookchaptershere. I am very thankful to Springer and its publishing team. I cordially very much appreciate the supportof Christian Rauscher, Senior Editor, Business, Operations Research&InformationSystems/Springer,forhavingprovidedthechanceforthis wonderfulwork.Also,Iwanttoexpressmyspecialthanktomypreciouscolleague andcoeditorProfessorGerhardWilhelmWeber—Willi—forhismarveloussupport andencouragementinmakingthisbookprojectverysuccessful.Lastbutnotleast, I would like to thank my outstanding colleague and my coeditor Sandra Huber for her rigorous and disciplined work here. I express my gratitude to them for having ensured a premium book of a high standard academic, applied, and social importance. Now, I wish all of you a lot of joy in readingthis interesting book,and I hope thatagreatbenefitisgainedfromitbothpersonallyandglobally! KonyaTechnicalUniversity,Turkey TuranPaksoy June2018 Preface The dynamics of supply chain management (SCM) has changed and accelerated over the years; new paradigms have been added into SCM to respond to changes based on the increasing economic, environmental, and social concerns and pres- sures.Intoday’sglobalandcompetitiveenvironment,leanandgreenpracticeshave becomemostimportantfactorsto enhancethecompanies’performance.Leanand green manufacturing philosophy and techniques facilitate companies to improve theirbusinessperformanceintermsofreducingmanufacturingleadtimesandcosts and to improve on-time delivery and product quality, while becoming greener by minimizing material usage and waste and applying recycling and reuse. All these leanandgreenactivitiesincreaseproductivity,reducecarbonfootprint,andenhance customersatisfaction,whichinturnmakecompaniessustainableandcompetitive. In this context, our book Lean and Green Supply Chain Management: Opti- mization Models and Algorithms aims to give the reader some of the most recent researchdealing with lean andgreen supplychain management.Furthermore,the book presents a comprehensive reference resource, including novel optimization algorithmstoachieveleanandgreensupplychainsthatenableandenhancebusiness performanceaswellasenvironmentalperformancesimultaneously. Our book includes contributions and reviews of the latest developments in optimization and mathematical models, exact, approximate, and hybrid methods, andtheirapplicationsforleanandgreensupplychains,including: (cid:129) A detailed literature surveys on models and algorithmsdevelopedfor lean and greensupplychains (cid:129) Case studies and experimental applications on lean and green supply chain networkdesignandmodeling (cid:129) Supply chainnetwork design and optimizationconsideringcustomer behaviors andenvironment (cid:129) Sustainablesupplychainmanagementconsideringlean,green,agile/responsive andresilientnetworks (cid:129) Applicationsoffuzzy setstheoryandextensionsinleanandgreensupplychain management vii viii Preface (cid:129) Multi-criteriadecisionmakingforleanandgreensupplychainmanagement (cid:129) Riskmanagementinleanandgreensupplychains (cid:129) Supplierselectionwithleanandgreenconsiderations (cid:129) Leanandgreenvehicle/fleetmanagement (cid:129) Leanandgreenoperationsmanagement The book gathers 9 chapters, which are prepared by experts from various countries of the world on the lean and green supply chain management and on its theory, methods, and application. Short descriptions of all chapters are given subsequently,withinsomegroupingbysubjects. Lean andGreen SupplyChainOptimization Chapter1,namedas“LeanandGreenSupplyChainManagement:AComprehen- siveReview,”byBatuhanErenEngin,MarenMartens,andTuranPaksoy,focuses onacomprehensiveliteraturesurveyonleanandgreensupplychainmanagement. Intotal,41articles,publishedbetween2000and2017,areanalyzedbytheauthors. One of the main goals is to classify the existing literature and analyze future directions in this research area. First, lean and green practices are described for importantcontributions.Second,measuresandindicatorsareestablishedtoevaluate theimpactofleanandgreenmethodsontheoverallsupplychainperformance. Chapter 2, entitled “A New Model for Lean and Green Closed-Loop Supply Chain Optimization,” by Turan Paksoy, Ahmet Çalik, Alexander Kumpf, and Gerhard-Wilhelm Weber, is dedicated to a new modelfor a lean and greenclosed loop automotive supply chain in order to provide an optimal distribution plan for several periods as well as for several echelons in the network. To solve such problems, six different objectives are included, such as the minimization of transportationcost,latedeliveries,etc.Oneofthemaincontributionsistheusageof afuzzyweightedadditivemethod,whichemploysafuzzyanalytichierarchyprocess forthedeterminationoftheweights.Inaddition,theinvestigatedframeworkcanbe utilizedtounderstandthedriversinanintegratedmodel. Lean andGreen SupplierSelection Chapter 3, called as “Risk Management in Lean & Green Supply Chain: A Novel Fuzzy Linguistic Risk Assessment Approach” by Turan Paksoy, Ahmet Çalik, Abdullah Yildizbas¸ı, and Sandra Huber, proposes a novel fuzzy linguistic risk assessment approach to evaluate risk management in lean and green supply chains. A solution approach with four stages is presented that, e.g., includes the determination of weights by the decision maker, the assignment of suppliers to risk groups,etc. Furthermore,a numericalinvestigationis carriedout to show the Preface ix applicability of the proposed method. In order to present managerialinsights, the authorsprovideactionplanswhichcorrespondtothedifferentrisklevels. Chapter4,named“ANewMultiObjectiveLinearProgrammingModelforLean and Green Supplier Selection with Fuzzy TOPSIS,” by Belkız Torg˘ul and Turan Paksoy, examines the assessment of a multi-objective linear programming model for a supplierselection problem.Apartfrom financialfactors, quantitativeas well asqualitativefactorsthatincorporateleanandgreensupplychainmanagementare includedinthemodel.Theauthorsuseareal-worldcasestudyinvolvingthedelivery ofplasticpartsintheautomotiveindustryinTurkeytoassesstheperformanceand effectivenessoftheproposedmodel. Lean andGreen Vehicle/Fleet Management Chapter5,entitled“TheImpactofRoutingonCO EmissionsataRetailGrocery 2 Store Chain: A GIS-based Solution Approach,” by Çag˘rıKoç, Mehmet Erbas¸, and Eren Özceylan, introduces a variant of a pollution-routing problem in order to analyze a retail grocery store chain in Turkey. Thereby, special attention is paid to fuel consumption and CO emissions of the vehicles. The presented tabu 2 searchheuristicisabletoprovidemanagerialinsightsbyinvestigatingthetrade-off betweenthenumberofvehiclesandtheshopdemands.Furthermore,itisbeneficial togainfurtherinsightsbyvisualizingthedataandthesolutionsonagraphicaluser interface. Chapter6,namedas“ASimulatedAnnealingAlgorithmBasedSolutionMethod foraGreenVehicleRoutingProblemwithFuelConsumption,”byKenanKaragul, YusufSahin,ErdalAydemir,andAykutOral,presentsthedevelopmentofasimulated annealing algorithm that provides decision support for a green vehicle routing problem with fuel consumption. Thereby, the total vehicle weight, the changes of the weight, and the distances have to be taken into account in a heuristic. The methodology is illustrated for selected test instances, and statistical analysis techniquesareappliedtocomparethedifferentmethods. Chapter 7, called “Development of a Web-Based Decision Support System for Strategic and Tactical SustainableFleet ManagementProblems in Intermodal Transportation Networks,” by Adil Baykasog˘lu, Kemal Subulan, A. Serdar Tas¸an, Nurhan Dudaklı, Murat Turan, Erdin Çelik, and Özgür Ülker, is devoted to a web-baseddecisionsupportsystemforsustainablefleetmanagementinintermodal transportationnetworks.Thepromotionofinteractivedecisionsupportisofmajor importance in sustainable fleet planning.A decision maker seeks to minimize the overalltransportationcosts, the total transit times, and the CO emissionsthrough 2 theintroductionofstrategicaswellastacticalfleetmanagement.Inthiscontext,a decision supportsystem is introducedto foster an internationallogistics company ofTurkey.