Integrated chain analysis of recycled vis-a-vis wood pulp paper industry: an Indian manufacturer viewpoint Online publication date: Mon, 13-Feb-2006
by Rupesh Kumar Pati, Prem Vrat, Pradeep Kumar
International Journal of Value Chain Management (IJVCM), Vol. 1, No. 1, 2006
Abstract: Strict environmental regulations and the ever-increasing shortages in the availability of natural resources are making reverse logistics an area of growing importance. From the manufacturer's point of view, this paper proposes a linear programming optimisation model for the Indian paper industry with two different sources of raw materials (i.e., wood and wastepaper). The objective of the model is to minimise the paper supply chain cost, which includes costs of collection, transportation, segregation and disposal (for recycled paper), inventory, and manufacturing. The inclusions of environmental cost and cost of quality added a new dimension to the said model, which was not explored earlier in the supply chain context. To know the behaviour of the system under different scenarios, sensitivity analysis, shortage analysis and finally, indifference curve analysis have been performed on the model. The model will help the manufacturer make strategic decision under different shortage scenarios of the paper supply chain.
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