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Environmental and Cost Synergy in Supply Chain Network Integration in Mergers and Acquisitions

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Multiple Criteria Decision Making for Sustainable Energy and Transportation Systems

Part of the book series: Lecture Notes in Economics and Mathematical Systems ((LNE,volume 634))

Abstract

In this paper, we quantify and assess, from a supply chain network perspective, the environmental effects resulting when a merger or acquisition occurs and the resulting synergy from possible strategic gains. We develop a multicriteria decision-making supply chain network framework that captures the economic activities of manufacturing, storage, and distribution pre and post the merger. The models yield the system optima associated with the minimization of the total costs and the total emissions under firm-specific weights. We propose a synergy measure that captures the total generalized cost. We then apply the new mathematical framework to quantify the synergy obtained for specific numerical examples.

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Acknowledgements

This research was supported by the John F. Smith Memorial Fund at the Isenberg School of Management. This support is gratefully acknowledged.

The first author thanks Professor Matthias Ehrgott, the organizer of the 19th International MCDM Conference, held January 7–12, 2008, in Auckland, New Zealand, and all the participants for many helpful and stimulating discussions which led to this paper. The authors acknowledge the helpful comments and suggestions of an anonymous reviewer and the Editors of this volume on an earlier version of this paper.

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Authors and Affiliations

  1. Department of Finance and Operations Management, Isenberg School of Management, University of Massachusetts Amherst, Massachusetts, 01003, USA

    Anna Nagurney

Authors
  1. Anna Nagurney
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  2. Trisha Woolley
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Correspondence to Anna Nagurney .

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Editors and Affiliations

  1. Dept. Engineering Science, University of Auckland, Auckland, New Zealand

    Matthias Ehrgott

  2. Login GmbH, Wilhelmstraße 45, Schwelm, 58332, Germany

    Boris Naujoks

  3. Dept. Statistical Sciences, University of Cape Town, Rondebosch, 7701, South Africa

    Theodor J. Stewart

  4. and Business Administration, Helsinki School of Economics, Runeberginkatu 14-16, Helsinki, 00100, Finland

    Jyrki Wallenius

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Nagurney, A., Woolley, T. (2010). Environmental and Cost Synergy in Supply Chain Network Integration in Mergers and Acquisitions. In: Ehrgott, M., Naujoks, B., Stewart, T., Wallenius, J. (eds) Multiple Criteria Decision Making for Sustainable Energy and Transportation Systems. Lecture Notes in Economics and Mathematical Systems, vol 634. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-04045-0_6

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