Abstract
Supply chain management is about fulfilling demand. Most of the current supply chain literature models demand as an exogenous factor. This also holds true for sustainable supply chain management. However, demand itself is shaped by long- and short-term decisions on, for example, not only assortments and prices but also lead times and service quality. In addition to revenues and costs, demand management also has the potential to impact a firm’s environmental performance in the broadest sense, i.e., emissions, waste, and material and energy consumption. In this chapter, we discuss opportunities for endogenizing demand in sustainable supply chain management. We first discuss the impact of relevant demand characteristics on a firm’s environmental performance. Subsequently, we introduce common demand management levers and then review examples of how they have been applied to manage environmental objectives. We close the chapter by synthesizing our main observations and discussing potential avenues for future research.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Abbey JD, Blackburn JD, Guide VDR Jr (2015a) Optimal pricing for new and remanufactured products. J Oper Manag 36:130–146
Abbey JD, Meloy MG, Guide VDR Jr, Atalay S (2015b) Remanufactured products in closed-loop supply chains for consumer goods. Prod Oper Manag 24(3):488–503
Abrahamse W, Steg L, Vlek C, Rothengatter T (2005) A review of intervention studies aimed at household energy conservation. J Environ Psychol 25(3):273–291
Agatz N, Campbell AM, Fleischmann M, Van Nunen J, Savelsbergh M (2013). Revenue management opportunities for internet retailers. Journal of Revenue and Pricing Management 12(2):128–138
Agatz N, Fan Y, Stam D (2021) The impact of green labels on time slot choice and operational sustainability. Prod Oper Manag 30(7):2285–2303
Agrawal VV, Ferguson M, Toktay LB, Thomas VM (2012) Is leasing greener than selling? Manag Sci 58(3):523–533
Azadi Z, Eksioglu SD, Eksioglu B, Palak G (2019) Stochastic optimization models for joint pricing and inventory replenishment of perishable products. Comput Ind Eng 127:625–642
Belavina E, Girotra K, Kabra A (2017) Online grocery retail: revenue models and environmental impact. Manag Sci 63(6):1781–1799
Bray J, Kanakaratne MDS, Dragouni M, Douglas J (2021) Thinking inside the box: an empirical exploration of subscription retailing. J Retail Consum Serv 58:102333
Campbell AM, Savelsbergh M (2006) Incentive schemes for attended home delivery services. Transp Sci 40(3):327–341
Campbell AM, Savelsbergh MW (2005) Decision support for consumer direct grocery initiatives. Transp Sci 39(3):313–327
Carrefour (2021) Carrefour suspends sales of strawberries until mid-February. https://www.carrefour.com/en/actuality/fraisesjanvier. [Online; accessed 2-8-2022]
Chatwin RE (2000) Optimal dynamic pricing of perishable products with stochastic demand and a finite set of prices. Eur J Oper Res 125(1):149–174
Cohen MA, Vandenbergh MP (2012) The potential role of carbon labeling in a green economy. Energy Econ 34:S53–S63
Debo LG, Toktay LB, Van Wassenhove LN (2005) Market segmentation and product technology selection for remanufacturable products. Manag Sci 51(8):1193–1205
den Boer AV, Jansen HM, Zhao J (2022) Waste reduction of perishable products through markdowns at expiry dates. Available at SSRN
Dutta G, Mitra K (2017) A literature review on dynamic pricing of electricity. J Oper Res Soc 68(10):1131–1145
Gallego G, Topaloglu H et al (2019) Revenue management and pricing analytics, vol 209. Springer, Berlin
Guide VDR Jr, Van Wassenhove LN (2009) Or forum—the evolution of closed-loop supply chain research. Oper Res 57(1):10–18
Guide VDR Jr, Teunter RH, Van Wassenhove LN (2003) Matching demand and supply to maximize profits from remanufacturing. Manuf Serv Oper Manag 5(4):303–316
Heinold A, Meisel F, Ulmer MW (2022) Primal-dual value function approximation for stochastic dynamic intermodal transportation with eco-labels. Transp Sci
Hong X, Xu L, Du P, Wang W (2015) Joint advertising, pricing and collection decisions in a closed-loop supply chain. Int J Prod Econ 167:12–22
Hong Z, Wang H, Yu Y (2018) Green product pricing with non-green product reference. Transp Res Part E Logist Transp Rev 115:1–15
Hovelaque V, Bironneau L (2015) The carbon-constrained EOQ model with carbon emission dependent demand. Int J Prod Econ 164:285–291
Ignat B, Chankov S (2020) Do e-commerce customers change their preferred last-mile delivery based on its sustainability impact? Int J Logist Manag 31(3):521–548
Kallis G, Kostakis V, Lange S, Muraca B, Paulson S, Schmelzer M (2018) Research on degrowth. Annu Rev Environ Resour 43(1):291–316
Kirschstein T, Heinold A, Behnke M, Meisel F, Bierwirth C (2022) Eco-labeling of freight transport services: design, evaluation, and research directions. J Ind Ecol 26(3):801–814
Klein R, Koch S, Steinhardt C, Strauss AK (2020) A review of revenue management: recent generalizations and advances in industry applications. Eur J Oper Res 284(2):397–412
Köhler C, Ehmke JF, Campbell AM (2020) Flexible time window management for attended home deliveries. Omega 91:102023
Lin II, Mahmassani HS (2002) Can online grocers deliver?: some logistics considerations. Transp Res Rec 1817(1):17–24
Lu J, Zhang J, Zhang Q (2018) Dynamic pricing for perishable items with costly price adjustments. Optim Lett 12(2):347–365
Manerba D, Mansini R, Zanotti R (2018) Attended home delivery: reducing last-mile environmental impact by changing customer habits. IFAC-PapersOnLine 51(5):55–60
Materi S, D’Angola A, Renna P (2020) A dynamic decision model for energy-efficient scheduling of manufacturing system with renewable energy supply. J Clean Prod 270:122028
Mentzer JT, Moon MA, Estampe D, Margolis G (2007) Demand management. In: Handbook of global supply chain management, pp 65–85
Nogueira GPM, de Assis Rangel JJ, Shimoda E (2021) Sustainable last-mile distribution in b2c e-commerce: do consumers really care? Cleaner Responsible Consumption 3:100021
Ovchinnikov A, Blass V, Raz G (2014) Economic and environmental assessment of remanufacturing strategies for product+ service firms. Prod Oper Manag 23(5):744–761
Quante R, Meyr H, Fleischmann M (2009) Revenue management and demand fulfillment: matching applications, models and software. In: Supply chain planning. Springer, Berlin, pp 57–88
Rizova MI, Wong T, Ijomah W (2020) A systematic review of decision-making in remanufacturing. Comput Ind Eng 147:106681
Sanders RE (2022) Dynamic pricing and organic waste bans: a study of grocery retailers’ incentives to reduce food waste. Available at SSRN 2994426
Sanguinetti A, Dombrovski K, Sikand S (2018) Information, timing, and display: a design-behavior framework for improving the effectiveness of eco-feedback. Energy Res Soc Sci 39:55–68
Schwamberger J, Fleischmann M, Strauss A (2022) Feeding the nation—dynamic customer contacting for e-fulfillment in times of crisis. Serv Sci 15(1):22–40
Shoreh MH, Siano P, Shafie-khah M, Loia V, JP Catalão (2016) A survey of industrial applications of demand response. Electr Pow Syst Res 141:31–49
Steffen W, Richardson K, Rockström J, Cornell SE, Fetzer I, Bennett EM, Biggs R, Carpenter SR, De Vries W, De Wit CA, et al (2015) Planetary boundaries: guiding human development on a changing planet. Science 347(6223):1259855
Vinsensius A, Wang Y, Chew EP, Lee LH (2020) Dynamic incentive mechanism for delivery slot management in e-commerce attended home delivery. Transp Sci 54(3):567–587
Waßmuth K, Köhler C, Agatz N, Fleischmann M (2022) Demand management for attended home delivery–a literature review. ERIM Report Series Reference Forthcoming
WBCSD W (2004) The greenhouse gas protocol. In: A corporate accounting and reporting standard, Rev ed Washington, DC, Conches-Geneva
Wei S, Tang O, Sundin E (2015) Core (product) acquisition management for remanufacturing: a review. J Remanuf 5(1):1–27
Yang C, Feng Y, Whinston A (2022) Dynamic pricing and information disclosure for fresh produce: an artificial intelligence approach. Prod Oper Manag 31(1):155–171
Yang X, Strauss AK, Currie CS, Eglese R (2016) Choice-based demand management and vehicle routing in e-fulfillment. Transp Sci 50(2):473–488
Yenipazarli A, Vakharia A (2015) Pricing, market coverage and capacity: can green and brown products co-exist? Eur J Oper Res 242(1):304–315
Yildiz B, Savelsbergh M (2020) Pricing for delivery time flexibility. Transp Res B Methodol 133:230–256
Zink T, Geyer R (2016) There is no such thing as a green product. Stanf Soc Innov Rev 14(2):26–31
Zink T, Geyer R (2017) Circular economy rebound. J Ind Ecol 21(3):593–602
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2024 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Agatz, N., Fleischmann, M. (2024). Demand Management for Sustainable Supply Chain Operations. In: Bouchery, Y., Corbett, C.J., Fransoo, J.C., Tan, T. (eds) Sustainable Supply Chains. Springer Series in Supply Chain Management, vol 23. Springer, Cham. https://doi.org/10.1007/978-3-031-45565-0_10
Download citation
DOI: https://doi.org/10.1007/978-3-031-45565-0_10
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-45564-3
Online ISBN: 978-3-031-45565-0
eBook Packages: Business and ManagementBusiness and Management (R0)