ABSTRACT

Two trends have affected manufacturing organizations. First international competition has increased dramatically with globalization and multilateral trade accords. The competition has enabled customers to demand lower prices, better quality, and faster delivery, and at the industry level. Multiple stakeholders have fueled the second trend described in the entry. These stakeholders expect better environmental stewardship from manufacturing firms and their supply chains. This can take on many forms, including end‐of‐life product responsibility, reduced wastes, and lower consumption of natural resources and energy. On the surface, these two trends might be seen as incompatible, because moving waste products back through the supply chain increases logistical costs and inventory levels. Research described in the entry shows this isn't necessarily so.