Three-echelon supply chain model considering carbon emission and item deterioration (original) (raw)
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While many supply chains use vendor-managed inventory (VMI) to handle deteriorating products, they employ special facilities (e.g., cold warehouses), which produce significant carbon emissions. This new operational practice motivates us to investigate the effects of carbon emission reduction on a supply chain with one manufacturer and two competing retailers for deteriorating products under VMI, which has not been fully studied in the existing literature. Carbon cap-and-trade regulation and investment in green technologies are used to curb carbon emissions generated by production and inventory holding in this system. To bench mark the performance of the decentralized system, an optimization model for the centralized system is formulated to show that there exists an upper bound on the profit penalty for decentralization and the carbon emissions of the centralized system may be lower than those of the decentralized system. A revenue-sharing contract is then proposed to improve the profit and emissions of the decentralized system. The results show that the supply chain can be coordinated perfectly when the demand depends on the manufacturer's green technology level and two competing retailers' selling prices. Numerical examples with sensitivity analysis are further provided to test the robustness of the supply chain's operational decisions.
Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items
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Nowadays, many countries have implemented carbon pricing policies. Hence, the industry adapts to this policy while striving for its main goal of maximizing financial benefits. Here, we study a single manufacturer–retailer inventory decision considering carbon emission cost and item deterioration for an imperfect production system. This study examines two models considering two cases of quality inspection. The first is when the buyer performs the quality inspection, and the second is when the quality inspection becomes the vendor’s responsibility so that no defective products are passed to the buyer. Carbon emission costs are incorporated under a carbon tax policy, and we consider the carbon footprint from transporting and warehousing the items. The objective is to jointly optimize the delivery quantity and number of deliveries per production cycle that minimize the total cost and reduce the total carbon emissions. This study provides solution procedures to solve the models, as well ...
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International Journal of Operational Research, 2016
Global warming impacts are becoming more visible in our daily life. Supply chain activities and many logistics activities are the leading sources of carbon dioxide (CO 2) emission and environmental pollutions. These issues have raised concerns to reduce CO 2 emissions amount through design and planning of supply chain networks. Operations research has been recognised by many studies as an effective tool to deal with CO 2 emission in design and planning of green supply chains. To date, a number of literature reviews have highlighted the contribution of operations research to green supply chain management with broader areas of focus. In this paper, we present a review which highlights the operations research contribution to recent green supply chain and logistics literature which specifically focuses on planning and control of supply chain activities with respect to CO 2 emission. Finally, we propose some possible areas for further developments of current studies and directions for future research.