Abstract: Customer’ needs, quality, and value creation while
reducing costs through supply chain management provides challenges
and opportunities for companies and researchers. In the light of these
challenges, modern ideas must contribute to counter these challenges
and exploit opportunities. Therefore, this paper discusses the impact
of the quality cost on revenue sharing as a most important incentive
to configure business networks. This paper develops the quality cost approach to align with the
modern era. It develops a model to measure quality costs which
might enable firms to manage revenue sharing in a supply chain. The
developed model includes five categories; besides the well-known
four categories (namely prevention costs, appraisal costs, internal
failure costs, and external failure costs), a new category has been
developed in this research as a new vision of the relationship between
quality costs and innovations in industry. This new category is
Recycle Cost. This paper also examines whether such quality costs in
supply chains influence the revenue sharing between partners. Using the author's quality cost model, the relationship between
quality costs and revenue sharing among partners is examined using a
case study in an Egyptian manufacturing company which is a part of
a supply chain. This paper argues that the revenue-sharing proportion
allocated to supplier increases as the recycle cost of supplier
increases, and the revenue-sharing proportion allocated to
manufacturer increases as the prevention and appraisal costs increase,
as well as the failure costs, the recycle costs of manufacturer, and the
recycle costs of suppliers decrease. However, the results present
surprising findings. The purposes of this study are developing quality cost approach
and understanding the relationships between quality costs and
revenue sharing in supply chains. Therefore, the present study
contributes to theory and practice by explaining how the cost of
recycling can be combined in quality cost model to better
understanding the revenue sharing among partners in supply chains.
Abstract: The production of aluminum alloys and ingots –
starting from the processing of alumina to aluminum, and the final
cast product – was studied using a Life Cycle Assessment (LCA)
approach. The studied aluminum supply chain consisted of a carbon
plant, a reduction plant, a casting plant, and a power plant. In the
LCA model, the environmental loads of the different plants for the
production of 1 ton of aluminum metal were investigated. The impact
of the aluminum production was assessed in eight impact categories.
The results showed that for all of the impact categories the power
plant had the highest impact only in the cases of Human Toxicity
Potential (HTP) the reduction plant had the highest impact and in the
Marine Aquatic Eco-Toxicity Potential (MAETP) the carbon plant
had the highest impact. Furthermore, the impact of the carbon plant
and the reduction plant combined was almost the same as the impact
of the power plant in the case of the Acidification Potential (AP). The
carbon plant had a positive impact on the environment when it come
to the Eutrophication Potential (EP) due to the production of clean
water in the process. The natural gas based power plant used in the
case study had 8.4 times less negative impact on the environment
when compared to the heavy fuel based power plant and 10.7 times
less negative impact when compared to the hard coal based power
plant.