Operations Management: Processes and Supply Chains, 12th Edition

Energy Efficiency

Supply chains involve the flow of materials and services from their origination to their ultimate destination. As such, supply chains consume energy. Energy consumption not only is expensive from a business perspective, but it can also have negative effects on the environment. Increasingly more firms are measuring their carbon footprint, which is the total amount of greenhouse gases produced to support their operations, usually expressed in equivalent tons of carbon dioxide $\left({\text{CO}}_2\right).$ Major contributors to carbon footprints are fossil fuels, in particular oil, diesel, and gasoline, which are used extensively in supply chain logistical operations. Therefore, it behooves firms to be efficient with respect to energy consumption ...