OMGT2186 Quantitative Analysis and Decision Making

Semester 2 2012


Assignment 2: Individual assignment


Assignment tasks

Of all the quantitative concepts and methods that this course has covered;

(i)       Which one do you think is the single most useful one from a supply chain and logisticsmanagement decision making perspective? Justify your selection.


(ii)      Identify at least one specific supply chain and logistics management issue or problem that this quantitative concept could be directly applied to and discuss how it could be directly applied in this issue or problem to help make a more informed decision.


(iii) Discuss any important limitations to which the use of this concept or quantitative method is subject, and outline what if anything can be done to minimise the negative consequences of the limitation(s) on the specific decision situation discussed in point (ii).


Assignment format requirements, length …

  • You can present the critique in either an essay or a business report format. Whichever method is chosen you must comply with the relevant RMIT guidelines for presenting written work.
  • You must support your own conclusions and comments with up-to-date, well-reputed evidence from the operations management and the supply chain and logistics management literature.
  • You must write this assignment yourself, although discussion with others is permitted and indeed encouraged.
  • Your submitted written assignment should be between 2000- 2500 words in length (excluding the abstract or executive summary, reference list, and any attachments or appendices).


Assignment marks

Assignment 2 is worth 50 marks.


Due date and submission method

It is due on Tuesday June 5 2012 by 5 pm. The assignment must be lodged electronically to the Grade Centre for OMGT2186.


Green Supply Chain and Logistics Management

The challenges and remedies

Executive Summary

Supply chain management is one of the core areas of business for any organization or industry. We need to be dependent on suppliers for the raw materials, so the manufacturing can be continued. Starting from the manufacturing to the finished goods delivery to the market, the whole process is covered under the supply chain and logistics management. We need to make a good relationship with the suppliers to get the cost benefit and also to gain the timely supply of the raw materials. Although these aspects are very much critical for any organization mostly when there is monopoly of the suppliers in the market. Actually in some sectors we face lots of scarcity of suppliers due to cost consideration. In these cases, we face lots of problems while negotiating with the suppliers.

Due to increase in pollution issues and global warming the supply chin and logistics is one of the most important sector where we need to make a go green change to make the green supply chain management. So the main issue is now the pollution problem, so we have taken into consideration the green supply chain management and the challenges of green supply chain and logistics by the organizations.

We can use the descriptive quantitative research method and forecasting method to understand and describe the issue more effectively and to make the proper recommendation based on the findings and analysis of the issues.

Descriptive quantitative research is one of the most effective methods for the quantitative research. This can be done in four ways, Forecasting method, Observational method, case study method and survey method. Here we will be looking after the case study method. We will be looking over the forecasting method look over the issue and based on the analysis we will be finding out the best suitable remedies of the issue to make a better decision for the implications of green supply chain and logistics management in the organizations.

Forecasting method is one of the effective research method that is based upon the historical data and information which has occurred in past. We will be looking over the previous reports and researches to extract the data and information and based on those information we will be further doing analysis and findings and recommendations for the effective green supply chain and logistics management by the organizations at this global scenario.


After the globalization the issue with the environmental pollution has increased and now it has become a major issue worldwide. Here in this study we will be considering this issue in correlation with the supply chin and logistics management. How we can minimize the issue by utilizing our various learning and theories of green management.

Objective of the study:

  1. Aligning the supply chin and logistics goal for both efficiency and pollution reduction (Corbett & Klassen, 2006; Rothenberg, Pil, & Maxwell, 2001): We need to align the objective in such a manner that this will meet our objective of efficiency and the pollution reduction and finally that could lead to the competitive advantage for the firm. For this we need to be united and be more committed towards the aspects of the supply chain management and the requirement for the firm.
  2. Transfer of environment friendly and environment specific innovation and technologies from the customers to the suppliers (Geffen & Rothenberg, 2000; Klassen & Vachon, 2003): Technology and innovation is one the most important aspects that could help us in reduction of the pollution by using new technologies and innovative ideas for the better implications of supply chain and logistics in the firm. The use of new and latest technologies will reduce the harmful effect of gases and other pollutants while proceeding for the supply chain and logistics in the firm.
  3. Competition and cooperation between the firms to re-manufacturing or recycling of the waste or used products (Guide & Van Wassenhove, 2002; Pagell, Wu, & Murthy, 2007): There should be a kind of cooperation and the competition among the firms to introduce the recycling and re-manufacturing or the used product or the wastes. This will again help in the reduction of the pollutants and this will also help the firms to maximize their output by utilizing the waste or used products. So it will be a kind of win-win situation for the firms to use the recycling or re-manufacturing methods.

These three objectives are required to be met in this study. For this we will be looking over various aspects of the supply chin and logistics management procedures and the stages. Based on various research reports and articles, we will be analysing the main issue and their cause. We will be using the forecasting method to do the analysis of those data and information extracted from the various resources and reports. Based on the estimation and forecasting techniques, we will be further looking over the remedies of the issue. As we know the whole world is suffering and even fighting with this issue of global warming. Now we need to take further steps in this regards to make the effective recommendations for the better solution of the issue. So we could finally make the better implications of these issues while making effective decisions for the effective and integrated green supply chin and logistics management for the organizations.



Beamon (Beamon, 1999) found that an estimated 75% of the consumers stated that their purchase power was actually influenced by the company’s environmental considerations and the kind of green implications within the firm, and around 80% consumers would be willing to pay even extra charges for environmentally friendly goods and the practices. By practicing just a few of green concepts and ideology in supply chain and logistics management, many firms have already achieved the success. As it directly affects the market value of the firm due to increased consumer demand and acceptance the profitability of the firm goes up and the firms value increase. To create the real and effective environmental change, the firm must practice and develop those strategic that lead to the minimization of waste and the maximization of the output with a less evolution of the pollutants (Hervani, Helms and Sarkis, 2005). The organization need to develop the kind of strategies where they will be developing the effective and green procedure as per the need and requirement of the process and the products. They should understand the then decide that wherever the recycling or re-manufacturing is required they should use the green methods to utilize the waste (Sarkis, 2003).

A recent survey of 212, U.S. manufacturing firms found that over 75% of respondents opted for the pollution prevention as a key component to their overall company performance. Over 49% of these firms also reported that suppliers were playing a major role in the reduction of pollution (Rao and Holt, 2005).

These facts and figures clearly indicate that pollution is going to be one of the biggest issue for the whole world in the coming days. We can easily forecast the kind of increment in the pollution limitations and their negative impact on the whole world. The forecast can be done based on the historical data and based on these historical data and facts we can easily demonstrate the upcoming figure. This will give us an estimated value or figure for the coming days. Based on these values we can further work to reduce the impact of pollution related to the supply chain and logistics management at workplace.

So we can understand the kind of need and requirement of the Green supply chain and logistics management within the organization for the better and optimal efficient and competitiveness. Even the results and consumer’s response is quite positive in this regards. So the organization should consider these aspects for better and optimal output and this will also lead to the efficiency and increased competitive advantage of the firm.


As we know that everything has its limitations whether it is a theoretical concept or anything practical happening. But we need to minimize that limitation by making maximum optimality in the process. Here in descriptive research based on the forecasting method, it is very useful for understanding the main issue with the green supply chain and logistics across the world based on the previous research and historical data collected from the various sources. If we talk about the limitation of descriptive research then we will come to know various aspects that are not totally and effectively covered in this research context such as the social context, process improvement context and many more is still not covered under this research method. That may lead to the inefficiency in the research report. To avoid this kind of discrepancy in the report we can somewhere use the different research method like the empirical research and other. This way we can make a better report and we can also avoid the discrepancy in the research. As we know that supply chain and logistics is one of the biggest part of management. They need to take care of each and every small and big thing to avoid the issues and challenges in terms of go green concept. They should also work upon some prior crisis management concept to work proactively to the risk aspects if any.

Forecasting method is totally dependent and based upon the historical data and the previous happenings. Based on the previous happenings which have already occurred in the past, we make further analysis and the based on this analysis we come to some findings and recommendations. This may lead to the inefficiency in the findings as we will look over the previous happening which has already occurred in the past and we have also taken recommendation and action over that issue. So that particular issue is not going to happen again the future probably. But there are more chances of happening of the different issue in the future. So this can be one of the biggest loopholes with the forecasting method to dependent on the historical data and the research.

If we are making a good and effective research report then we must look over the limitation of process and method which we are using to perform the research. If we avoid this aspect then this will reflect to the final report and findings of the research. So rather than working time and again to the same research we can make a better try at the initial phase by considering the limitations of the method and procedure which we are using or following for the particular research. This will work as a proactive step in making a proper research report that will be more effective and integrated in terms of finding and the accuracy.


An increasing number of organizations in Asia, Europe and North America engage in voluntary or mandatory end-of-life product management. Moreover, since developments in product and the supply chain and logistics procedures create both economic and environmental values (Geyer and Jackson, 2004). It has become a kind of essential for the organization’s to understand the need and requirement of the green supply chain management within the organization to maintain a kind of green consideration within the internal and external environment. As per the reports and finding it is quite clear that the consumers are also demanding a firm who is practicing the green technology and procedure while manufacturing or delivering the goods to the market. So we can forecast the kind of need and requirement of the green supply chain and logistics management within the organization. This will have a direct effect on the market share by adding value to the organization. We need to keep on forecasting these kinds of customers need and requirement which is changing like anything and day by day. To catch the consumer demand, we need to keep on studying and analysing their past behaviour and requirement and based on those historical facts and figures, we can further analyse the future need and requirements, so we could work upon those issue effectively. As per the acceptance and requirement of the common people and economy, the organization should have a keen and contrasting eye over the environmental issues and their remedies.

The whole world is working over this issue of global warming and in each and every sector we can find some new innovation of the green products and services. This indicates the kind of dedication and responsibility towards the green technology and development of the green implications in each and every sector for the effective and better planning to stop or minimize the negative impact of the global warming and other pollution issues to the environment. We need to work over this issue effectively as we can see the increasing rate of pollution and their negative and harsh impact on the society and economy.


Company should use the method of green supply chain management,

Green Supply chain reference model is based on 3 factors:

Process modelling: The better the process model the better the chances of final output. The process modelling is one of the most important tasks while implementing any project management practices. We need to make a proper blueprint of the process which we are going to implement. We should also do the pilot testing of the process model.

Best practices: We should always look for the benchmark in the industry. We should look ways to make another benchmark by our best practices in the industry. This way the go green methodology will be more effectively implemented in SCM and other process of the industry.

Performance management: We should also look over the performance management aspects to timely evaluate and enhance the performance of employees, process, management for the betterment of the whole aspects that will finally lead to the effective implementation of the green supply chain and logistics management.

It is process reference model, endorsed by the supply chain council as and diagnostic tool for supply chain management. This help to communicate effectively among all supply chain partners for sharing of various ideas and processes.

The proximity of partners in SOCR is important because the proximity and the partners will lead to exchange of the information among them which in turn will make this supply chain process more effective

It start from supplier’s supplier to customer customers’s.proximty of partners is required in order to know the customers accurate need, and then supply product which will keep the customers satisfied.

It is five distinct market plans:

PLAN- to meet the demand with supple

SOURCE-procure goods and services to meet the demand

MAKE-process how to make raw   material to finished goods

DELIVER- processes that will help to deliver finished goods and meet the actual demand

RETURN-process associated with customer deliver support

In the supply chain model, the proximity of manufacture, retailer and the final seller will determine how this 5 distinct market plans can be carried out. At each of these five steps role of partners is defined, and they will pass on information, to make the process more effective.


For this a proper Research Analysis should be done. Research analysis is one of the most important and crucial part of skills in a manager to get the desired and effective combination of team and so the team could result effectively and efficiently. For this, a manager needs to be very much efficient and skilful that from which point of view, the team members should be evaluated for the qualitative analysis and same applies in case of quantitative analysis. Both goes hand on hand for the better result and efficiency from performance point of view and the behaviour point of view as well. These two parts must be taken care of very effectively and efficiently to make a perfect combination of team, that can make the process effective and competitive. This will help in gaining competitive advantage for the company.

Difference from manager’s point of view:

  1. Qualitative analysis is based upon the quality part or the flexibility according to the need and requirement of the organization and team as a whole. Whereas, quantitative analysis focuses on the numerical part i.e. the profitability and the target achievement part.
  2. Qualitative analysis is more important than quantitative analysis.
  3. Qualitative analysis give the morale to the team members to move ahead and the quantitative analysis enhances the competency of the team.
  4. Quantitative research is like deductive in nature whereas qualitative research is mostly exploratory in nature.

Forecasting method is useful in the following issue of supply chain management and we can further use this method for the better research opportunities in the related fields. But we should always take care that this method is totally based upon the hypothetical phenomenon and we make the estimation based upon the historical data or based on those happenings which have already occurred in past. So there may be some chance of the inefficiency in the estimation but although this is one of the important and effective method to perform the research on these kind of qualitative research scenario.

Supply chain management is the need of the hour and every business organization is trying its best to have a good supply chain management. Competition is now decided on the basis of how fast and accurate a person is on delivering their products and this mainly leads consumers to move on from one consumer to other. Supply chain in other terms helps a lot for business firms to increase their market share. If an organization is having good supply chain management, the products would reach customers on time and their wont is any kind of delay. This would ensure people recognizing the quality of service and won’t loose this company for long term.




Reference List

Beacon, B.M. “Designing the Green Supply Chain.” Logistics Information Management, 1999, 12:4, 332-342.

Corbett & Klassen. (2006). Extending the  horizons: Environmental excellence as  key to improving operations. Manufacturing and Service Operations Management,  8(1), 5–22.

Geyer, R., Jackson, T., 2004. Supply loops and their constraints: the industrial ecology of recycling and reuse. California Management Review 48 (2), 55–73.

Geffen, C., & Rothenberg, S. (2000). Suppliers and environmental innovation: The automotive paint process. International Journal of Operations and Production Management, 20(2), 166-186.

Guide, D., & Van Wassenhove, L. (2002). The reverse supply chain. Harvard Business Review, 80(2), 25-26

Hervani, A.A., Helms, M.M., and Sarkis, J. “Performance Measurement for Green Supply Chain Management.” Benchmarking: An International Journal, 2005, 12, 330-353.

Melnyk S., Sroufe R., & Calantone, R. (2003). Assessing the impact of environmental management systems on corporate and environmental performance. Journal of Operations Management, 21(3), 329-351

Pagell, M., Wu, Z., & Murthy, N. (2007). The supply chain implications of recycling. Business Horizon, 50, 133-143

Rao, P., and Holt, D. “Do Green Supply Chains Lead  to Competitiveness and Economic performance?” International Journal of Operations & Production Management, 2005, 25, 898-916.

Rothenberg, S., Pil, F., & Maxwell, J. (2001).  Lean, green and the quest for superior environmental performance. Production and  Operations Management, 10(3), 228-243.

Sarkis, J. “A Strategic Decision Framework for Green Supply Chain Management.” Journal of Cleaner Production, 2003, 11:4, 397-409.


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