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Sustainable Business Core

MGT 646: Sustainable Supply Chains

Course Description This course analyzes problems and solutions associated with building sustainable supply chains. Students will study how to design a supply chain so as to minimize the cost of monitoring suppliers for compliance with sustainability initiatives. The course will develop optimal formal/informal incentive contracts for promoting investment by suppliers in sustainable capital and equipment, including product testing equipment. Supply chain problems such as the hold-up problem, delegation vs. control of suppliers sustainability practices, and supplier auditing are considered in the context of developing sustainable supply chains. Advantages and disadvantages of large suppliers versus local sourcing are considered. Sustainability issues associated with suppliers in developing countries are also considered, including private versus state owned suppliers and the degree of enforcement of local regulations. Differences in the value to external stakeholders and brand reputation between domestic and foreign suppliers are analyzed.

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