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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
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    References listed on IDEAS

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    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.

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