Slide 1 Matching Supply with Demand: An Introduction to Operations Management Gérard Cachon ChristianTerwiesch All slides in this file are copyrighted by Gerard Cachon and Christian Terwiesch. Any instructor that adopts Matching Supply with Demand: An Introduction to Operations Management as a required text for their course is free to use and modify these slides as desired. All others must obtain explicit written permission from the authors to use these slides.

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Slide 6 Greenhouse gases  There are a number of “greenhouse gases” that contribute to global warming:  H2O - water vapor – the most common  C2O – carbon dioxide - combustion of coal, oil, gase  CH4 – methane - landfills, natural gas, digestion/manure  N20 – nitrous oxide – fertilizer  Several chlorofluorocarbons  Global Warming Potential:  Different gases have different potential to contribute to warming per unit of mass  For example, CH4 has 23 times the warming potential of CO2  Total emissions are often measured in “CO2 equivalents”, i.e., the equivalent amount of CO2 that would generate the same warming.

Slide 7 Emission sources in the U.S.

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Slide 9 Supply chain carbon footprint management  Future supply chains will not only have to match supply with demand at low cost, they will need to manage their environmental impact.

Slide 10  The carbon footprint of various sourcing options differ because of differences in…  Raw materials (e.g., oak barrels from France)  Local manufacturing process (e.g., fertilizer)  Weight of the product (e.g., packaging)  Electricity  Transportation What is going on?

Slide 11 Electricity emissions  Emissions from electricity production depends on the production mode (hydro, nuclear, wind, solar, natural gas, oil, coal) and transmission distances

Slide 12  The mode of transportation has a substantial impact on emissions Transportation emissions

Slide 13  6 mpg of diesel  lbs CO 2 per gal. of diesel.  Load size = 20 tons.

Slide 14  18 mpg of gasoline  lbs CO 2 per gal. of gasoline.  Load size = 100 lbs

Slide 15  9.55 x lbs CO 2 per mile per lb of load  1.09 x lbs CO 2 per mile per lb of load The truck is 114 times greener than the minivan

Slide 16  50 mpg of gasoline  lbs CO 2 per gal. of gasoline.  Load size = 100 lbs

Slide 17  9.55 x lbs CO 2 per mile per lb of load  3.9 x lbs CO 2 per mile per lb of load The truck is 41 times greener than the hybrid

Slide 18  New Zealand lamb served in England:  11,000 miles of sea transport  Total emissions = 1,520 lbs CO 2 t-1 Eat local?  English lamb served in England:  Emissions = 6,280 lbs CO 2 t-1  New Zealand lamb is organically grown, so there is little carbon emitted due to feed, unlike in England.

Slide 19  Roses from the Netherlands:  35,000 kgs CO 2 per batch.  99% of the footprint due to production.  Roses from Kenya  6,000 kgs CO 2 per batch.  91% of the footprint due to air transport. Roses delivered to England

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