“More and more companies are developing green sustainable supply chains using environmentally friendly materials whose by-products can be reclaimed and re-used within the manufacturing process,” said Jeff Karrenbauer, president of INSIGHT, Inc. The latest version of the company's SAILS incorporates green supply chain design.
Pointing out that some companies are developing new revenue sources and growing market share from by-products that were previously discarded, Karrenbauer says others are more carefully examining disposal options and costs. “One way or another, companies must explicitly account for by-products in the strategic planning process, an issue which has often been ignored in traditional supply chain design studies,” he says.
SAILS 4.5 also includes what Karrenbauer describes as “the most advanced methodology ever developed for representing inventory in a multi-period network model, wherein users can enforce dynamically computed min/max ending inventory targets for a given period as a function of future period demands.”