Effect of Unequal Lot Sizes, Variable Setup Cost, and Carbon Emission Cost in a Supply Chain Model

Biswajit Sarkar · Sharmila Saren · Debjani Sinha · Sun Hur

68 citations0/0 files storedMathematical Problems in Engineering

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Supply Chain and Inventory Management Sustainable Supply Chain Management Optimization and Mathematical Programming

Abstract

Due to heavy transportation for single-setup multidelivery (SSMD) policy in supply chain management, this model assumes carbon emission cost to obtain a realistic behavior for world environment. The transportation for buyer and vendor is considered along with setup cost reduction by using an investment function. It is assumed that the shipment lot size of each delivery is unequal and variable. The buyer inspects all received products and returns defective items to vendor for reworking process. Because of this policy, end customers will only obtain nondefective items. The analytical optimization is considered to obtain the optimum solution of the model. The main goal of this paper is to reduce the total cost by considering carbon emission during the transportation. A numerical example, graphical representation, and sensitivity analysis are given to illustrate the model.

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References

2011Managing carbon footprints in inventory management 2015Product inspection policy for an imperfect production system with inspection errors and warranty cost 2002Quality improvement, setup cost and lead-time reductions in lot size reorder point models with an imperfect production process 2013Improved quality, setup cost reduction, and variable backorder costs in an imperfect production process 2014Manufacturing setup cost reduction and quality improvement for the distribution free continuous-review inventory model with a service level constraint 1986A constant lot size model with equal and unequal sized batch shipments between production stages 2013Integrated vendor–buyer supply chain model with vendor’s setup cost reduction 2009Lot sizing for a recoverable product with inspection and sorting

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2018Low carbon supply chain: a state-of-the-art literature review 2019Flexible work-in-process production system in supply chain management under quality improvement 2016A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction 2018Cooperative green supply chain management with greenhouse gas emissions and fuzzy demand

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