IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v271y2024ics0925527324000380.html
   My bibliography  Save this article

Reducing emissions from production and distribution in three-echelon supply chains

Author

Listed:
  • Mashud, Abu Hashan Md
  • Chakrabortty, Ripon K.
  • Hussain, Omar K.
  • Choi, Tsan-Ming

Abstract

Reducing carbon emissions is one of the key goals of contemporary supply chains and logistics. This paper aims to formulate a novel three-echelon (supplier-3PL-retailer) supply chain model comprising green technology investment, variable demand, variable lead time, a dynamic shipping strategy, and an option for vehicle selection. The demand function considers the product's freshness index and maximum lifetime, along with the availability of stocks. Besides, the delivery from the 3PL to the retailer is dynamically determined based on previous shipment information. A green vehicle is selected using a multi-criteria decision-making (MCDM) technique based on q-alternatives with n-characteristics for the transportation process and mathematically we link this selection process to traditional three echelon supply chain optimization problem. The results show that combining green investment with an appropriate dynamic shipping strategy by using a selected green vehicle reduces the supply chain's emissions and total integrated cost. Furthermore, reducing lead time without compromising other supply chain factors stimulates demand of customers and produces fewer emissions with a significant reduction in the total integrated cost. A real-case-based study shows the performance of the proposed model and method.. The study illustrates that 47.744% of the carbon emissions in Scenario 1 and 47.53% in Scenario 2 are reduced when an emission reduction strategy is implemented. In terms of total integrated costs our proposed model could save 4.85% cost in Scenario 1 while 4.96% for Scenario 2, which is significant.

Suggested Citation

  • Mashud, Abu Hashan Md & Chakrabortty, Ripon K. & Hussain, Omar K. & Choi, Tsan-Ming, 2024. "Reducing emissions from production and distribution in three-echelon supply chains," International Journal of Production Economics, Elsevier, vol. 271(C).
    • Handle: RePEc:eee:proeco:v:271:y:2024:i:c:s0925527324000380
    DOI: 10.1016/j.ijpe.2024.109181
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527324000380
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2024.109181?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hongtao Ren & Wenji Zhou & Marek Makowski & Hongbin Yan & Yadong Yu & Tieju Ma, 2021. "Incorporation of life cycle emissions and carbon price uncertainty into the supply chain network management of PVC production," Annals of Operations Research, Springer, vol. 300(2), pages 601-620, May.
    2. Glock, C. H., 2012. "Lead time reduction strategies in a single-vendor-single-buyer integrated inventory model with lot size-dependent lead times and stochastic demand," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 57816, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    3. Feng, Lin & Wang, Wan-Chih & Teng, Jinn-Tsair & Cárdenas-Barrón, Leopoldo Eduardo, 2022. "Pricing and lot-sizing decision for fresh goods when demand depends on unit price, displaying stocks and product age under generalized payments," European Journal of Operational Research, Elsevier, vol. 296(3), pages 940-952.
    4. Fu, Ke & Li, Yanzhi & Mao, Huiqiang & Miao, Zhaowei, 2023. "Firms’ production and green technology strategies: The role of emission asymmetry and carbon taxes," European Journal of Operational Research, Elsevier, vol. 305(3), pages 1100-1112.
    5. Wang, Mingxi & Hu, Yi & Wang, Shouyang & Dang, Chuangyin, 2023. "The optimal carbon tax mechanism for managing carbon emissions," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    6. Ata Allah Taleizadeh & Bita Hazarkhani & Ilkyeong Moon, 2020. "Joint pricing and inventory decisions with carbon emission considerations, partial backordering and planned discounts," Annals of Operations Research, Springer, vol. 290(1), pages 95-113, July.
    7. Prak, Dennis & Saccani, Nicola & Syntetos, Aris & Teunter, Ruud & Visintin, Filippo, 2017. "The Repair Kit Problem with positive replenishment lead times and fixed ordering costs," European Journal of Operational Research, Elsevier, vol. 261(3), pages 893-902.
    8. Sebatjane, Makoena & Adetunji, Olufemi, 2020. "A three-echelon supply chain for economic growing quantity model with price- and freshness-dependent demand: Pricing, ordering and shipment decisions," Operations Research Perspectives, Elsevier, vol. 7(C).
    9. Glock, Christoph H., 2012. "Lead time reduction strategies in a single-vendor–single-buyer integrated inventory model with lot size-dependent lead times and stochastic demand," International Journal of Production Economics, Elsevier, vol. 136(1), pages 37-44.
    10. Goyal, Suresh K. & Nebebe, Fassil, 2000. "Determination of economic production-shipment policy for a single-vendor-single-buyer system," European Journal of Operational Research, Elsevier, vol. 121(1), pages 175-178, February.
    11. Yang, Lei & Hu, Yijuan & Huang, Lijuan, 2020. "Collecting mode selection in a remanufacturing supply chain under cap-and-trade regulation," European Journal of Operational Research, Elsevier, vol. 287(2), pages 480-496.
    12. Sarkar, Biswajit & Ganguly, Baishakhi & Sarkar, Mitali & Pareek, Sarla, 2016. "Effect of variable transportation and carbon emission in a three-echelon supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 91(C), pages 112-128.
    13. Olga Lingaitienė & Juozas Merkevičius & Vida Davidavičienė, 2021. "The Model of Vehicle and Route Selection for Energy Saving," Sustainability, MDPI, vol. 13(8), pages 1-20, April.
    14. Heydari, Jafar & Mahmoodi, Mansour & Taleizadeh, Ata Allah, 2016. "Lead time aggregation: A three-echelon supply chain model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 215-233.
    15. Piecyk, Maja I. & McKinnon, Alan C., 2010. "Forecasting the carbon footprint of road freight transport in 2020," International Journal of Production Economics, Elsevier, vol. 128(1), pages 31-42, November.
    16. Urban, Timothy L. & Baker, R. C., 1997. "Optimal ordering and pricing policies in a single-period environment with multivariate demand and markdowns," European Journal of Operational Research, Elsevier, vol. 103(3), pages 573-583, December.
    17. Maihami, Reza & Govindan, Kannan & Fattahi, Mohammad, 2019. "The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 118-138.
    18. Beemsterboer, Bart & Land, Martin & Teunter, Ruud, 2017. "Flexible lot sizing in hybrid make-to-order/make-to-stock production planning," European Journal of Operational Research, Elsevier, vol. 260(3), pages 1014-1023.
    19. Zhang, Weijian & Shi, Xianliang & Huang, Anqiang & Hua, Guowei & Teunter, Ruud H., 2023. "Optimal stock and capital reserve policies for emergency medical supplies against epidemic outbreaks," European Journal of Operational Research, Elsevier, vol. 304(1), pages 183-191.
    20. Xu, Xiaoping & Guo, Shunan & Cheng, T.C.E. & Du, Pengcheng, 2023. "The choice between the agency and reselling modes considering green technology with the cap-and-trade scheme," International Journal of Production Economics, Elsevier, vol. 260(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Guo, Penghui & Feng, Gengzhong & Wang, Kai & Hua, Jiawen, 2024. "Analysis of financing strategies for digital technology investment under privacy concerns and competition," International Journal of Production Economics, Elsevier, vol. 274(C).
    2. Gisèle Mendy Bilek & Richard Calvi & Daniel Erhel & Youcef Mechouar, 2024. "Towards Green Transportation Practices Using a Buyer/Supplier Perspective: A Systematic Literature Review," Logistics, MDPI, vol. 8(3), pages 1-22, July.
    3. Raghavendra, Ananya Hadadi & Bala, Pradip Kumar & Mukherjee, Arindam, 2024. "Text mining analysis of retail and consumer service leaders' sustainability narratives: Are they actually true?," Journal of Retailing and Consumer Services, Elsevier, vol. 80(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soumya Kanti Hota & Biswajit Sarkar & Santanu Kumar Ghosh, 2020. "Effects of Unequal Lot Size and Variable Transportation in Unreliable Supply Chain Management," Mathematics, MDPI, vol. 8(3), pages 1-24, March.
    2. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    3. Asif Iqbal Malik & Biswajit Sarkar, 2020. "Coordination Supply Chain Management Under Flexible Manufacturing, Stochastic Leadtime Demand, and Mixture of Inventory," Mathematics, MDPI, vol. 8(6), pages 1-32, June.
    4. M. A. Hoque, 2021. "An optimal solution policy to an integrated manufacturer-retailers problem with normal distribution of lead times of delivering equal and unequal-sized batches," OPSEARCH, Springer;Operational Research Society of India, vol. 58(2), pages 483-512, June.
    5. K. F. Mary Latha & M. Ganesh Kumar & R. Uthayakumar, 2021. "Two echelon economic lot sizing problems with geometric shipment policy backorder price discount and optimal investment to reduce ordering cost," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1133-1163, December.
    6. Sajjad Aslani Khiavi & Hamid Khaloozadeh & Fahimeh Soltanian, 2021. "Suboptimal sliding manifold For nonlinear supply chain with time delay," Journal of Combinatorial Optimization, Springer, vol. 42(1), pages 151-173, July.
    7. Bendre, Abhijit Bhagwan & Nielsen, Lars Relund, 2013. "Inventory control in a lost-sales setting with information about supply lead times," International Journal of Production Economics, Elsevier, vol. 142(2), pages 324-331.
    8. Castellano, Davide & Gallo, Mosè & Grassi, Andrea & Santillo, Liberatina C., 2019. "The effect of GHG emissions on production, inventory replenishment and routing decisions in a single vendor-multiple buyers supply chain," International Journal of Production Economics, Elsevier, vol. 218(C), pages 30-42.
    9. Rabin Kumar Mallick & Kartik Patra & Shyamal Kumar Mondal, 2020. "Mixture inventory model of lost sale and back-order with stochastic lead time demand on permissible delay in payments," Annals of Operations Research, Springer, vol. 292(1), pages 341-369, September.
    10. Noblesse, Ann M. & Boute, Robert N. & Lambrecht, Marc R. & Van Houdt, Benny, 2014. "Lot sizing and lead time decisions in production/inventory systems," International Journal of Production Economics, Elsevier, vol. 155(C), pages 351-360.
    11. Gharaei, Abolfazl & Almehdawe, Eman, 2020. "Economic growing quantity," International Journal of Production Economics, Elsevier, vol. 223(C).
    12. Heydari, Jafar, 2014. "Lead time variation control using reliable shipment equipment: An incentive scheme for supply chain coordination," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 63(C), pages 44-58.
    13. Oshmita Dey, 2019. "A fuzzy random integrated inventory model with imperfect production under optimal vendor investment," Operational Research, Springer, vol. 19(1), pages 101-115, March.
    14. Songtao Zhang & Yanting Hou & Siqi Zhang & Min Zhang, 2017. "Fuzzy Control Model and Simulation for Nonlinear Supply Chain System with Lead Times," Complexity, Hindawi, vol. 2017, pages 1-11, September.
    15. Sumon Sarkar & Bibhas C. Giri, 2022. "Safety stock management in a supply chain model with waiting time and price discount dependent backlogging rate in stochastic environment," Operational Research, Springer, vol. 22(2), pages 917-946, April.
    16. Surendra Vikram Singh Padiyar & Vandana & Shiv Raj Singh & Dipti Singh & Mitali Sarkar & Bikash Koli Dey & Biswajit Sarkar, 2022. "Three-Echelon Supply Chain Management with Deteriorated Products under the Effect of Inflation," Mathematics, MDPI, vol. 11(1), pages 1-19, December.
    17. Asif Iqbal Malik & Biswajit Sarkar, 2019. "Coordinating Supply-Chain Management under Stochastic Fuzzy Environment and Lead-Time Reduction," Mathematics, MDPI, vol. 7(5), pages 1-28, May.
    18. Denisa MAMILLO, 2015. "Supply Chain Collaboration under Uncertainty in the Albanian Beer Market," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 3(1), pages 99-117, March.
    19. Castellano, Davide & Glock, Christoph H., 2024. "Economic production quantity for a decaying item with stochastic demand and positive lead time," International Journal of Production Economics, Elsevier, vol. 267(C).
    20. Marcello Braglia & Davide Castellano & Marco Frosolini, 2016. "Joint-replenishment problem under stochastic demands with backorders-lost sales mixtures, controllable lead times, and investment to reduce the major ordering cost," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 67(8), pages 1108-1120, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:271:y:2024:i:c:s0925527324000380. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.