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1 – 10 of over 95000
Book part
Publication date: 4 December 2014

Richard Smokers, Lóránt Tavasszy, Ming Chen and Egbert Guis

Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The challenges are…

Abstract

Purpose

Logistics as a sector has a key role to play in reducing greenhouse gas emissions and in reducing the dependency of our economy on non-renewable energy sources. The challenges are enormous: by 2050 the sector needs to have achieved about 50% lower fossil fuel use and CO2 emissions. If freight volumes grow according to expectations, this requires over 70% less CO2 emissions per unit of transport. This chapter explores the options for reducing CO2 emissions from freight transport and their reduction potential, and analyses whether the logistic sector would be likely to achieve the required reduction based on its intrinsic drive for cost reduction alone.

Methodology/approach

In this conceptual chapter we identify options for sustainable logistics and discuss the necessary economic conditions for their deployment using a simple cost/benefit analysis framework. We distinguish between three regimes of measures for improving sustainability: efficiency measures with net negative costs (‘low hanging fruit’), cost-neutral measures and measures that allow to reach societal targets at net positive costs. Policy measures are discussed that may help the sector to implement cost-effective greenhouse gas abatement measures that, in the absence of incentives, go beyond the point of lowest cost from an end user perspective.

Social implications

Sufficient energy saving options are available to be implemented in the short to medium term, which can lead to operational cost savings with a short return on investments period. The potential contribution of the logistics sector to sustainability is larger, however, as logistics can make large steps ahead in sustainability with cost neutrality or with small cost increases. The full potential has been underrated by many stakeholders and should be explored further.

Originality/value of the chapter

Efficiency measures are a necessary but insufficient condition for sustainable logistics. The industry will need to go beyond cost saving measures, or even cost-neutral measures to reach the long-term energy saving and emission reduction targets for freight transport. We provide a systematic presentation of these options and discuss the additional necessary measures.

Details

Sustainable Logistics
Type: Book
ISBN: 978-1-78441-062-9

Keywords

Article
Publication date: 1 May 1992

P.L. Primrose

Despite the almost universal belief to the contrary, inventoryreduction should not be a major objective for investing in advancedmanufacturing technology because the financial…

Abstract

Despite the almost universal belief to the contrary, inventory reduction should not be a major objective for investing in advanced manufacturing technology because the financial benefits from it can be relatively small compared with other benefits. This article describes how changes in inventory are valued and why inventory reductions can have a complex, and often negative, effect on profitability. High inventory levels are only a symptom of other problems; if these problems are not first identified and solved, inventory reductions can be counterproductive.

Details

International Journal of Operations & Production Management, vol. 12 no. 5
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 November 2006

Eva Labro

Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on the…

2322

Abstract

Purpose

Supplier involvement in cost reduction efforts has been concentrated mainly in the product development phase of the life cycle of the product. Often this concentration on the early phases of the product life cycle is defended with referral to the 80/20 rule that says that 80 per cent of the manufacturing costs are determined or committed during product design and development. The purpose of this paper is to look for empirical evidence that supports this rule and discuss the limited literature on joint buyer/supplier cost reduction programmes beyond the product development stage of the product life cycle.

Design/methodology/approach

An extensive literature survey on both the cost commitment rule and collaborative cost reduction programmes beyond the product development stage was conducted.

Findings

It was found that empirical evidence in the literature for the 80/20 rule on cost commitment in product design is only anecdotal. Even more surprisingly, compared to the literature on cost reduction in design phases, the literature on cost reduction efforts in later stages of the product life cycle is rather limited and usually ignores possibilities for supplier/buyer collaboration.

Research limitations/implications

Further empirical research (suggestions provided) should assess whether the identified lack of evidence is due to a gap in the empirical literature or to lower degrees of cost commitment and attention to cost efforts beyond product design indeed existing in practice.

Practical implications

This paper calls practitioners to revisit the cost commitment rule and check its existence in their specific contexts. As a result of this exercise, practitioners may want to consider implementing some of the techniques reviewed in the paper that can assist in collaborative cost reduction beyond the product development stage.

Originality/value

Given the amount of money involved, the general applicability of the cost reduction techniques to various industries and relationships with suppliers, the opportunities for huge savings and the fact that most firms usually have many products and/or technologies at maturity stage, my research makes an important contribution by identifying both a lack of empirical evidence in the literature on the notion that 80 per cent of the costs are committed in the design phase and the limited attention given in the literature to supplier/buyer cost reduction programmes in further stages of the product life cycle.

Details

Supply Chain Management: An International Journal, vol. 11 no. 6
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 February 2016

Nils O.E. Olsson

The purpose of this paper is to study the use of potential scope reductions in major construction projects for special-purpose buildings. Scope reductions may result in buildings…

1093

Abstract

Purpose

The purpose of this paper is to study the use of potential scope reductions in major construction projects for special-purpose buildings. Scope reductions may result in buildings that are less fit for purpose; this will be negative according to a facilities management perspective. The paper discuses to what extent this is the case. Potential reductions of project scope have been a tool for cost control of governmental investments in Norway since 2001.

Design/methodology/approach

The study is based on lists of possible reductions that were identified in the early phase of the projects. Information about the outcome of these possible reductions is collected from eleven public building projects.

Findings

In the studied projects, reduction lists were equivalent to 2.7 per cent of projects budgets, ranging from 0 to 9 per cent. Contingencies for these projects were 9.5 per cent on average, ranging from 5 to 13 per cent. The reduction lists were typically smaller than the contingencies’ lists. Seven of 11 studied projects had reduction lists established during the front-end phase. Only two projects implemented some of the reductions. These reductions were general reductions of the quality of spaces.

Research limitations/implications

Empirical research results are based on Norwegian experiences. Results are compared to international practices. Future research can include comparisons between facilities projects and other types of investments.

Practical implications

The Norwegian reduction lists can be seen as a type of value engineering. The studied potential reductions are based on an unusually high degree of specification of the potential actions for cost control. International best practice is more concerned with general approaches. The practice of identifying specific potential reductions has little use as an active tool for controlling costs. General reduction options work better than specific reductions. The potential scope reductions do not appear to be a threat in a facilities management perspective.

Originality/value

This is the first study of how potential reductions have been used in public building projects. The findings are of interest related to cost control of major investments in facilities.

Details

Journal of Facilities Management, vol. 14 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 5 May 2022

Jiayuan Han, Lingcheng Kong, Wenbin Wang and Jiqing Xie

A public emission reduction project offers saleable carbon credits to encourage individual residents to participate in activities with low carbon emissions: if the residents…

Abstract

Purpose

A public emission reduction project offers saleable carbon credits to encourage individual residents to participate in activities with low carbon emissions: if the residents participate, they will earn carbon credits that can be sold to polluting firms for carbon offsetting. This study explores the economic and environmental implications of these projects.

Design/methodology/approach

The authors develop a multiperiod model to incorporate the decisions of individual residents and a polluting firm. The model captures residents' difference in estimating the price of carbon credits: A proportion of residents are naive residents who shortsightedly take the previous market price of carbon credits as the basis of their decision-making.

Findings

A public emission reduction project can improve the cost-efficiency of carbon reduction, increase both the profit of the polluting firm and consumer surplus, but may hurt the welfare of the participating residents. Reducing transaction costs of carbon credits may cause a greater loss to participating residents. As the ratio of naive residents decreases, the overall welfare of participating residents increases and the number of participating residents decreases.

Practical implications

To encourage more residents to reduce carbon emissions, the project should be promoted to new areas (e.g. rural areas) where there are more naive residents. Although reducing transaction costs is an effective way to increase the economic viability of the project, the government should pay attention to protecting the welfare of residents, and educating residents is an effective way to improve their overall welfare.

Originality/value

This paper is the first to reveal the economic and environmental implications of public emission reduction projects.

Details

Industrial Management & Data Systems, vol. 122 no. 5
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 27 June 2008

Loreta Stankeviciute and Patrick Criqui

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse gas…

2265

Abstract

Purpose

The purpose of this paper is to quantify the possible interactions among the three European objectives in the horizon of 2020: the reduction of 20 per cent of greenhouse gas emissions (GHG); the saving of 20 per cent of the European energy consumption; and a share of 20 per cent of renewable energies in the overall energy consumption. Particular focus is, however, placed on the influence of the CO2 emission reduction targets and on their consequences on the carbon price in 2020.

Design/methodology/approach

In order to explore the interactions among the three European objectives and their induced effects, a number of scenarios are tested within a combination of two modeling tools: the POLES world energy model and ASPEN, an auxiliary model dedicated to the analysis of quota trading systems. With reasonable assumptions for the burden sharing among the member states, the energy efficiency objectives and the renewable energy targets are achieved using national quota systems in each European country (white and green certificate systems and their implicit prices), while the CO2 emission reduction is carried out within the European Emissions Trading Scheme (ETS) in line with the objective of 20 per cent emission reduction.

Findings

The paper shows, in particular, that the two quota policies (white certificates and green certificates) decrease significantly the European marginal emission reduction cost and consequently, the compliance costs for ETS participants. The high‐renewable target compliance cost could be reduced significantly if carbon price signal and energy saving policies are in place. The paper also shows that the sole carbon price signal has a limited influence for stimulating renewable energies and energy savings and thus concludes on the need for specific policies targeting these two areas.

Originality/value

This paper is a first attempt to comprehensively deal with the economic fundamentals of the 3D regulatory system proposed by the Commission for Energy and Climate and is of value in proposing a comprehensive approach of the economics of the “20/20/20” European policy.

Details

International Journal of Energy Sector Management, vol. 2 no. 2
Type: Research Article
ISSN: 1750-6220

Keywords

Article
Publication date: 18 June 2010

Seongsu Kim and Soo Wook Kim

The purpose of this paper is to find if there is an existing trade‐off between service quality and cost when strategies of low‐cost accommodation and uncompromised reduction are…

1073

Abstract

Purpose

The purpose of this paper is to find if there is an existing trade‐off between service quality and cost when strategies of low‐cost accommodation and uncompromised reduction are implemented.

Design/methodology/approach

The model is designed on hand system dynamics, using Vensim™ software. It consists of a situation where no side effects are interrupting the result. The modeled service system is designed as two parts: a situation where five sorts of customer variables are introduced, continued by a situation where low‐cost accommodation and uncompromised reduction change the system.

Findings

There is no typical trade‐off pattern between service quality and cost when implementing Frei's two solutions. Rather, the findings resulted in an almost conform line of quality curve so that the promotion of Frei's solutions can be interpreted as the result of cost reduction.

Research limitations/implications

Owing to the use of simulation tools, it is still critical whether the result holds in the real world where various influences to the service system can exist.

Originality/value

There are various papers regarding service quality and cost but not that much about managerial tools used in a service system. Aside from many statistically proofed papers, this paper uses system dynamics to simulate certain managerial tools for service when implemented into a system.

Details

Asian Journal on Quality, vol. 11 no. 1
Type: Research Article
ISSN: 1598-2688

Keywords

Book part
Publication date: 26 June 2013

Robert Kee and Michele Matherly

This paper examines how target costing decisions can be impacted by product and production interdependencies.

Abstract

Purpose

This paper examines how target costing decisions can be impacted by product and production interdependencies.

Design/methodology/approach

Numerical examples are used to investigate the effect that product and production interdependencies have on target costing decisions. Mixed integer programming and simulation are used to model the interrelationships between a product’s cost reduction effort and related decisions such as product mix, pricing, and capacity acquisition. Product and production interdependencies are introduced by evaluating a product with multiple price and demand options, capacity is acquired in large discrete quantities, and resources have economies of scale. Analyses of choices made with and without considering product and production interdependencies are used to evaluate their effects on target costing decisions.

Findings

A product’s cost reduction effort cannot be determined independently of other production-related choices, such as product mix, capacity, and price, in the presence of product and production interdependencies.

Research implications

The findings of this paper underscore the need for additional research to understand the conditions that impair target costing decisions and the economic consequences of suboptimal decisions.

Practical implications

Rather than assessing target costing decisions at the individual product level, these decisions must be evaluated at the portfolio level of the firm’s operations.

Social implications

Suboptimal target costing decisions impact the products and product mix that the firm chooses to offer, which affects the ability of organizations to effectively achieve their strategic goals.

Originality/value

This paper identifies new limitations to target costing that can help managers understand the technique better and lead to improved target costing decisions.

Details

Advances in Management Accounting
Type: Book
ISBN: 978-1-78190-842-6

Keywords

Article
Publication date: 1 January 1965

WORK study owes much to the Association of British Chemical Manufacturers for the series of notes on the subject which it produces, a debt just increased by the fifth booklet…

Abstract

WORK study owes much to the Association of British Chemical Manufacturers for the series of notes on the subject which it produces, a debt just increased by the fifth booklet which is a general guide to managers in the industry who may be considering the introduction of an incentive scheme.

Details

Work Study, vol. 14 no. 1
Type: Research Article
ISSN: 0043-8022

Article
Publication date: 4 April 2023

Weijie Zhou, Jianhua Zhu and Ce Zhang

This paper aims to introduce corporate social responsibility into the green supply chain and analyse the impact of different decision makers’ decision-making schemes on carbon…

Abstract

Purpose

This paper aims to introduce corporate social responsibility into the green supply chain and analyse the impact of different decision makers’ decision-making schemes on carbon emission reduction in the supply chain.

Design/methodology/approach

This study uses a two-stage low-carbon supply chain composed of a manufacturer and retailer as the research object. It uses the Stackelberg game model to analyse optimal carbon emission reduction and its influence under different decision-making modes.

Findings

Increased consumer green preferences and trust can improve the manufacturing enterprises’ carbon emission reduction rate. The carbon emission reduction rate decreases with increased green innovation costs. When green technology innovation costs remain constant, the greater the market capacity, the higher the carbon emission reduction rate. Market capacity has the most significant impact on the optimal carbon emission reduction rate without considering social responsibility decisions and has the least impact on the optimal carbon emission reduction rate while fully considering the social responsibility decision. To achieve decarbonisation production, the market capacity must be small, and when green innovation costs are high, it is the optimal choice without considering social responsibility. To achieve a higher level of carbon emission reduction, when the market capacity is low and the research and development cost is high or when the market capacity is large, it is the optimal choice.

Originality/value

The results provide scientific policy decisions and management significance for governments and enterprises in low-carbon subsidies and supply chain management. The findings also provide a basis for future theoretical research and enterprise practice.

Details

Chinese Management Studies, vol. 18 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

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