Low carbon supply chain coordination for imperfect quality deteriorating items

Yosef Daryanto*, Hui Ming Wee, Gede Agus Widyadana

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)

Abstract

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 as two numerical examples.

Original languageEnglish
Article number234
JournalMathematics
Volume7
Issue number3
DOIs
Publication statusPublished - 1 Mar 2019
Externally publishedYes

Keywords

  • Carbon emission
  • Deteriorating items
  • Imperfect quality
  • Inspection
  • Supply chain inventory

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