Peter Letmathe

IFORS Tutorial Lecture

10th Triennial Conference of the Association of Asia-Pacific Operational Research Societies
Kuching Sarawak, Malaysia
August 2015

Abstract

OR and Corporate Environmental Management

Environmental aspects relevant for corporate decision making can influence firm competitiveness in many ways. We can distinguish between aspects which directly increase cost, which reduce available decision alternatives and which influence the quality of relationships with corporate stakeholders. Additionally, closed-loop cycles to decrease waste and to preserve resources can reduce the firm’s overall environmental impact.

The presentation will provide an overview over these aspects and will discuss how the related costs can be measured.  Contrary to common belief, marginal costs curves of environmental aspects are often not monotonic and price changes are highly context-specific. The presented model shows that consequences for corporate decision making and environmental management are highly relevant for firm success.  Implications for corporate decision making are also illustrated by some numerical results.

About the Awardee

Peter Letmathe received his PhD (summa cum laude) from the University GH Essen and completed his postdoctoral stage with his Habilitation on “Flexible Standardization” at Ruhr-University Bochum. After completing his habilitation, he was appointed Professor of Environmental and Technology Management at University of Bayreuth. He held the chair of Value Chain Management with special focus on Small and Medium sized Enterprises at University of Siegen where he founded the SMI (Small and Medium Sized Enterprise Institute Siegen). Since October 2011, he has been Chair of Management Accounting at RWTH Aachen University.

His international experience includes multiple visiting professorships at the University of Colorado at Boulder and Clemson University. His practical experience comprises more than two years of work in the furniture industry as well as more than 50 projects with industrial firms mainly in the fields of strategic management, management accounting, and process optimisation. Besides having published in top business journals, he has been member of several scientific boards.In July 2013 he received the EURO award for the Best EJOR Paper 2013  (Innovative Applications of OR).