Environmental Implications of Strategic Supply Chain Decisions: The Role of Location and Scale
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چکیده
Strategic level supply chain decisions such as manufacturing facility size and location have implications for green supply chain goals. In recent years, many firms have embraced key trends in off-shoring by purchasing from or producing in low cost regions of the world. In this situation, transportation costs were fairly low and were not a key factor in these decisions. However, rising fuel costs and environmental concerns have become increasingly significant in recent years. Moreover, regional environmental production regulations also drive facility size and location decisions. To illustrate, due to high gas costs and excessive emissions, companies such as IKEA are relocating their manufacturing closer to their customers in an attempt to reduce the transportation of materials, parts and finished goods.
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Environmental Implications of Strategic Supply Chain Decisions: The Role of Location and Scale
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