Although several studies have explored the relationship between the operation and performance of a supply chain (SC), a general SC model cannot deliver the expected financial results at a company-wide level. In this paper, we argue that this cannot guarantee the maximization of a firm’s overall value because short-term financial performance metrics do not reflect the risk to businesses and the invested capital. Owing to the varying natures of risk and the capital invested, firms with multiple divisions should assess each division separately, and the results can be compared for decisions concerning the allocation of the firm’s capital and resources to maximize the overall value of its businesses. We propose a linkage model to consider operational activities and financial performance simultaneously in a firm’s supply chain model. To exhibit the superiority of the proposed model that connects SC operation and financial indicators, we first compare the differences between models for maximizing profit and enterprise-wise economic value added (EVA) as objective functions. To examine uncertainty in the operational and financial parameters of the SC, the results of sensitivity analyses are then reported. Experimental results showed that our model, using the EVA approach, is more effective and superior in terms of maximizing the firm’s overall value from the long-term perspective while satisfying the target values for financial ratios set by the firm’s executives and shareholders for all periods, unlike the results of the general model.

As the generation of industrial wastes increases, waste treatment is steadily becoming a serious economic and environmental issue. Existing waste has mainly been treated by landfilling after incineration. A shortage of landfill sites necessitates waste management alternatives other than traditional incineration and landfill. This paper focuses on a cost-benefit analysis that evaluates the economic and environmental performances of five treatment strategies for flammable industrial wastes: incineration, refuse plastic fuel (RPF) boiler, RPF cement furnace, cement furnace after shredding of wastes, and paper incineration after shredding of wastes. For such purposes, our model considered the entire process of each waste treatment, which involves collection, transportation, treatment, recovery, and the disposal of flammable industrial wastes that pose risks to their surroundings. Case studies of each treatment processes are reviewed, and a cost-benefit analysis is performed to evaluate and identify the selection of treatment and disposal facilities, along with an allocation of flammable industrial wastes and waste residues from generators to treatment and disposal facilities and transportation routes, in order to achieve the minimum economic and environmental costs.

A reverse supply chain, as a post-consumption activity, aims at extracting value from products at end of their life cycle (Mafakher and Nasiri, Journal of Cleaner Production 59:185–196, 2013). As well, company’s awareness is attracting increasing attention toward sustainable business practices. Open-innovation is a typical example of coordinative activity that a manufacturer should share a profits generated through reverse supply chain with retailer. The aim of this paper provide insights toward open innovation practice in sharing profits between two strategic partners, manufacturer and retailer to maximize an individual profits as well as total profits concurrently in reverse supply chain. For analyzing effects of open innovation strategies, we modeled reverse supply chain environments using system dynamics approach and compared the gap of profits between non-coordinative (decentralized) and coordinative activity. Three cooperative contracts in terms of how to share the cost and profit between two parties are proposed in this paper. Each contract was analyzed according to the following three contract processes. The first stage is that manufacturer proposes contracts to retailer. The second is that retailer evaluates proposed contracts and choices the best contract which can lead to maximize its expected profit. Finally retailer and manufacturer adjust parameters of the best contract for achieving mutual goal of supply chain. Through the experimental results, we discuss best coordinative strategy between manufacturer and retailer in order to maximize a profit in reverse SC.