IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i7p1226-d218431.html
   My bibliography  Save this article

Effects of Carbon-Emission and Setup Cost Reduction in a Sustainable Electrical Energy Supply Chain Inventory System

Author

Listed:
  • Umakanta Mishra

    (Department of Business Administration, Soochow University, 56 Section 1, Kuei-yang Street, Taipei 10048, Taiwan)

  • Jei-Zheng Wu

    (Department of Business Administration, Soochow University, 56 Section 1, Kuei-yang Street, Taipei 10048, Taiwan)

  • Anthony Shun Fung Chiu

    (Don Antonio Cojuangco Professorial Chair of Industrial Technology University Fellow, Professor and Research Fellow Gokongwei College of Engineering, De La Salle University Manila, Manila 0922, Philippines)

Abstract

This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights.

Suggested Citation

  • Umakanta Mishra & Jei-Zheng Wu & Anthony Shun Fung Chiu, 2019. "Effects of Carbon-Emission and Setup Cost Reduction in a Sustainable Electrical Energy Supply Chain Inventory System," Energies, MDPI, vol. 12(7), pages 1-18, March.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:7:p:1226-:d:218431
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/7/1226/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/7/1226/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Nadia S. Ouedraogo, 2017. "Modeling sustainable long-term electricity supply–demand in Africa," WIDER Working Paper Series 023, World Institute for Development Economic Research (UNU-WIDER).
    2. Ouedraogo, Nadia S., 2017. "Modeling sustainable long-term electricity supply-demand in Africa," Applied Energy, Elsevier, vol. 190(C), pages 1047-1067.
    3. Diaby, Moustapha, 2000. "Integrated batch size and setup reduction decisions in multi-product, dynamic manufacturing environments," International Journal of Production Economics, Elsevier, vol. 67(3), pages 219-233, October.
    4. Ivan Darma Wangsa & Tao Ming Yang & Hui Ming Wee, 2018. "The Effect of Price-Dependent Demand on the Sustainable Electrical Energy Supply Chain," Energies, MDPI, vol. 11(7), pages 1-18, June.
    5. Jinhuan Tang & Shoufeng Ji & Liwen Jiang, 2016. "The Design of a Sustainable Location-Routing-Inventory Model Considering Consumer Environmental Behavior," Sustainability, MDPI, vol. 8(3), pages 1-20, February.
    6. 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.
    7. Schneider, Maximilian & Biel, K. & Pfaller, S. & Schaede, Hendrik & Rinderknecht, Stephan & Glock, C. H., 2016. "Using inventory models for sizing energy storage systems: An interdisciplinary approach," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 79484, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    8. Freimer, Michael & Thomas, Douglas & Tyworth, John, 2006. "The value of setup cost reduction and process improvement for the economic production quantity model with defects," European Journal of Operational Research, Elsevier, vol. 173(1), pages 241-251, August.
    9. Schneider, Maximilian & Biel, K. & Pfaller, S. & Schaede, Hendrik & Rinderknecht, Stephan & Glock, C. H., 2015. "Optimal Sizing of Electrical Energy Storage Systems using Inventory Models," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74986, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    10. Nye, T. J. & Jewkes, E. M. & Dilts, D. M., 2001. "Optimal investment in setup reduction in manufacturing systems with WIP inventories," European Journal of Operational Research, Elsevier, vol. 135(1), pages 128-141, November.
    11. Fauza, Gusti & Amer, Yousef & Lee, Sang-Heon & Prasetyo, Hari, 2016. "An integrated single-vendor multi-buyer production-inventory policy for food products incorporating quality degradation," International Journal of Production Economics, Elsevier, vol. 182(C), pages 409-417.
    12. Biswajit Sarkar & Sharmila Saren & Mitali Sarkar & Yong Won Seo, 2016. "A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction," Sustainability, MDPI, vol. 8(12), pages 1-23, December.
    13. Denizel, Meltem & Erenguc, Selcuk & Benson, Harold P., 1997. "Dynamic lot-sizing with setup cost reduction," European Journal of Operational Research, Elsevier, vol. 100(3), pages 537-549, August.
    14. Tang, Shaolong & Wang, Wenjie & Yan, Hong & Hao, Gang, 2015. "Low carbon logistics: Reducing shipment frequency to cut carbon emissions," International Journal of Production Economics, Elsevier, vol. 164(C), pages 339-350.
    15. Hammami, Ramzi & Nouira, Imen & Frein, Yannick, 2015. "Carbon emissions in a multi-echelon production-inventory model with lead time constraints," International Journal of Production Economics, Elsevier, vol. 164(C), pages 292-307.
    16. repec:dar:wpaper:74992 is not listed on IDEAS
    17. Nadia S. Ouedraogo, 2017. "Modeling sustainable long-term electricity supply-demand in Africa," WIDER Working Paper Series wp-2017-23, World Institute for Development Economic Research (UNU-WIDER).
    18. Sarkar, Biswajit & Moon, Ilkyeong, 2014. "Improved quality, setup cost reduction, and variable backorder costs in an imperfect production process," International Journal of Production Economics, Elsevier, vol. 155(C), pages 204-213.
    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. Jihed Jemai & Biswajit Sarkar, 2019. "Optimum Design of a Transportation Scheme for Healthcare Supply Chain Management: The Effect of Energy Consumption," Energies, MDPI, vol. 12(14), pages 1-27, July.
    2. Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    3. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.

    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. Biswajit Sarkar & Sharmila Saren & Mitali Sarkar & Yong Won Seo, 2016. "A Stackelberg Game Approach in an Integrated Inventory Model with Carbon-Emission and Setup Cost Reduction," Sustainability, MDPI, vol. 8(12), pages 1-23, December.
    2. Ivan Darma Wangsa & Tao Ming Yang & Hui Ming Wee, 2018. "The Effect of Price-Dependent Demand on the Sustainable Electrical Energy Supply Chain," Energies, MDPI, vol. 11(7), pages 1-18, June.
    3. Shib Sankar Sana, 2022. "A structural mathematical model on two echelon supply chain system," Annals of Operations Research, Springer, vol. 315(2), pages 1997-2025, August.
    4. Dioha, Michael O. & Kumar, Atul, 2020. "Exploring the energy system impacts of Nigeria's Nationally Determined Contributions and low-carbon transition to mid-century," Energy Policy, Elsevier, vol. 144(C).
    5. Nieves, J.A. & Aristizábal, A.J. & Dyner, I. & Báez, O. & Ospina, D.H., 2019. "Energy demand and greenhouse gas emissions analysis in Colombia: A LEAP model application," Energy, Elsevier, vol. 169(C), pages 380-397.
    6. Santika, Wayan G. & Anisuzzaman, M. & Simsek, Yeliz & Bahri, Parisa A. & Shafiullah, G.M. & Urmee, Tania, 2020. "Implications of the Sustainable Development Goals on national energy demand: The case of Indonesia," Energy, Elsevier, vol. 196(C).
    7. Xinyu Han & Rongrong Li, 2019. "Comparison of Forecasting Energy Consumption in East Africa Using the MGM, NMGM, MGM-ARIMA, and NMGM-ARIMA Model," Energies, MDPI, vol. 12(17), pages 1-24, August.
    8. Trotter, Philipp A., 2022. "The slow transition to solar, wind and other non-hydro renewables in Africa – Responding to and building on a critique by Kincer, Moss and Thurber (2021)," World Development Perspectives, Elsevier, vol. 25(C).
    9. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Electricity Consumption and Population Growth in South Africa: A Panel Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 374-383, May.
    10. Mina Masoomi & Mostafa Panahi & Reza Samadi, 2022. "Demand side management for electricity in Iran: cost and emission analysis using LEAP modeling framework," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5667-5693, April.
    11. Riva, Fabio & Gardumi, Francesco & Tognollo, Annalisa & Colombo, Emanuela, 2019. "Soft-linking energy demand and optimisation models for local long-term electricity planning: An application to rural India," Energy, Elsevier, vol. 166(C), pages 32-46.
    12. Bissiri, M. & Moura, P. & Figueiredo, N.C. & Silva, P.P., 2020. "Towards a renewables-based future for West African States: A review of power systems planning approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    13. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Electricity consumption and population growth in South Africa: A panel approach," MPRA Paper 113828, University Library of Munich, Germany.
    14. Padi, Richard Kingsley & Chimphango, Annie, 2021. "Assessing the potential of integrating cassava residues-based bioenergy into national energy mix using long-range Energy Alternatives Planning systems approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    15. Trotter, Philipp A. & Maconachie, Roy & McManus, Marcelle C., 2018. "Solar energy's potential to mitigate political risks: The case of an optimised Africa-wide network," Energy Policy, Elsevier, vol. 117(C), pages 108-126.
    16. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 197-206, May.
    17. Mounir, Adil & Mascaro, Giuseppe & White, Dave D., 2019. "A metropolitan scale analysis of the impacts of future electricity mix alternatives on the water-energy nexus," Applied Energy, Elsevier, vol. 256(C).
    18. Munyanyi, Musharavati Ephraim & Awaworyi Churchill, Sefa, 2022. "Foreign aid and energy poverty: Sub-national evidence from Senegal," Energy Economics, Elsevier, vol. 108(C).
    19. Ayuketah, Yvan & Gyamfi, Samuel & Diawuo, Felix Amankwah & Dagoumas, Athanasios S., 2023. "A techno-economic and environmental assessment of a low-carbon power generation system in Cameroon," Energy Policy, Elsevier, vol. 179(C).
    20. Oyewo, Ayobami Solomon & Aghahosseini, Arman & Ram, Manish & Breyer, Christian, 2020. "Transition towards decarbonised power systems and its socio-economic impacts in West Africa," Renewable Energy, Elsevier, vol. 154(C), pages 1092-1112.

    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:gam:jeners:v:12:y:2019:i:7:p:1226-:d:218431. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.