IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v14y2021i6p1569-d515602.html
   My bibliography  Save this article

Impact of Energy and Carbon Emission of a Supply Chain Management with Two-Level Trade-Credit Policy

Author

Listed:
  • Vandana

    (Department of Mathematics, Inderprastha Engg. College, Ghaziabad 201010, India)

  • S. R. Singh

    (Department of Mathematics, Chaudhary Charan Singh University, Meerut 250001, India)

  • Dharmendra Yadav

    (Department of Mathematics, Vardhaman College, MJP Rohilkhand University, Uttar Pradesh 246701, India)

  • Biswajit Sarkar

    (Department of Industrial Engineering, Yonsei University, 50 Yonsei-ro, Sinchon-dong, Seodaemun-gu, Seoul 03722, Korea)

  • Mitali Sarkar

    (Information Technology Research Center, Chung-Ang University, Seoul 06974, Korea)

Abstract

Supply chain management aims to integrate environmental thinking with efficient energy consumption into supply chain management. It includes a flexible manufacturing process, more product delivery to customers, optimum energy consumption, and reduced waste. The manufacturing process can be made more flexible through volume agility. In this scenario, production cannot be constant, and with the concept of volume agility, production is taken as a decision variable under the effect of optimum energy consumption. Considering a two-echelon supply chain, we consider a producer and supplier with two-level-trade-credit policies (TLTCP) with the optimum consumption. To reduce the integrated total inventory cost, we believe that demand is a function of the credit period and selling price. The cost function is analyzed, either with the credit period dependent demand rate or with the selling price dependent demand rate through the numerical examples under energy costs. Energy and carbon emission costs are introduced in setup/ordering cost, holding cost, and item cost for producer and supplier. The effect of inflation on the total cost cannot be ignored; this model is being developed for deteriorating items with the simultaneous impact of volume agility, energy, carbon emission cost, and two-level-trade-credit policies with inflation. This supply chain model was solved analytically and obtained the optimum decision variables in a quasi-closed form solution. An illustrative theorem is being utilized to analyze the optimum result for all the decision parameters. The convexity of the objective function is being obtained analytically as well as graphically. Finally, numerical examples and sensitivity analysis are employed to illustrate the present study and with managerial insights.

Suggested Citation

  • Vandana & S. R. Singh & Dharmendra Yadav & Biswajit Sarkar & Mitali Sarkar, 2021. "Impact of Energy and Carbon Emission of a Supply Chain Management with Two-Level Trade-Credit Policy," Energies, MDPI, vol. 14(6), pages 1-19, March.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:6:p:1569-:d:515602
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/14/6/1569/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/14/6/1569/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jaggi, Chandra K. & Goyal, S.K. & Goel, S.K., 2008. "Retailer's optimal replenishment decisions with credit-linked demand under permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 190(1), pages 130-135, October.
    2. Kun-Jen Chung, 2013. "The EPQ model under conditions of two levels of trade credit and limited storage capacity in supply chain management," International Journal of Systems Science, Taylor & Francis Journals, vol. 44(9), pages 1675-1691.
    3. Himani Dem & S.R. Singh, 2015. "Joint replenishment modelling of a multi-item system with greening policy and volume flexibility," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 22(2), pages 148-166.
    4. Dharmendra Yadav & S.R. Singh & Rachna Kumari, 2015. "Retailer's optimal policy under inflation in fuzzy environment with trade credit," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(4), pages 754-762, March.
    5. Cárdenas-Barrón, Leopoldo Eduardo & Sana, Shib Sankar, 2014. "A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams׳ initiatives," International Journal of Production Economics, Elsevier, vol. 155(C), pages 249-258.
    6. Khanra, S. & Mandal, Buddhadev & Sarkar, Biswajit, 2013. "An inventory model with time dependent demand and shortages under trade credit policy," Economic Modelling, Elsevier, vol. 35(C), pages 349-355.
    7. Biswajit Sarkar & Sharmila Saren & Leopoldo Cárdenas-Barrón, 2015. "An inventory model with trade-credit policy and variable deterioration for fixed lifetime products," Annals of Operations Research, Springer, vol. 229(1), pages 677-702, June.
    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. Mrudul Y. Jani & Heta A. Patel & Amrita Bhadoriya & Urmila Chaudhari & Mohamed Abbas & Malak S. Alqahtani, 2023. "Deterioration Control Decision Support System for the Retailer during Availability of Trade Credit and Shortages," Mathematics, MDPI, vol. 11(3), pages 1-27, January.
    2. Álvaro Manso-Burgos & David Ribó-Pérez & Manuel Alcázar-Ortega & Tomás Gómez-Navarro, 2021. "Local Energy Communities in Spain: Economic Implications of the New Tariff and Variable Coefficients," Sustainability, MDPI, vol. 13(19), pages 1-18, September.
    3. Eid Gul & Giorgio Baldinelli & Pietro Bartocci, 2022. "Energy Transition: Renewable Energy-Based Combined Heat and Power Optimization Model for Distributed Communities," Energies, MDPI, vol. 15(18), pages 1-18, September.
    4. Elena Drobot & Ivan Makarov & Yelena Petrenko & Gaukhar Koshebayeva, 2022. "Relationship between Countries’ Energy Indicators and the Indices of GVC Participation: The Case of APEC Member Economies," Energies, MDPI, vol. 15(5), pages 1-22, February.
    5. Dominika Gajdosikova & Katarina Valaskova & Tomas Kliestik & Veronika Machova, 2022. "COVID-19 Pandemic and Its Impact on Challenges in the Construction Sector: A Case Study of Slovak Enterprises," Mathematics, MDPI, vol. 10(17), pages 1-20, September.
    6. Adrian Kampa & Iwona Paprocka, 2021. "Analysis of Energy Efficient Scheduling of the Manufacturing Line with Finite Buffer Capacity and Machine Setup and Shutdown Times," Energies, MDPI, vol. 14(21), pages 1-25, November.
    7. Tanveen Kaur Bhatia & Amit Kumar & Srimantoorao S. Appadoo & Yuvraj Gajpal & Mahesh Kumar Sharma, 2021. "Mehar Approach for Finding Shortest Path in Supply Chain Network," Sustainability, MDPI, vol. 13(7), pages 1-14, April.
    8. Yanwei Sang & Jianping Tan, 2022. "Many-Objective Flexible Job Shop Scheduling Problem with Green Consideration," Energies, MDPI, vol. 15(5), pages 1-17, March.
    9. Dariusz Milewski & Beata Milewska, 2021. "The Energy Efficiency of the Last Mile in the E-Commerce Distribution in the Context the COVID-19 Pandemic," Energies, MDPI, vol. 14(23), pages 1-13, November.
    10. Yuxin Fan & Fang Wei, 2022. "Contributions of Natural Carbon Sink Capacity and Carbon Neutrality in the Context of Net-Zero Carbon Cities: A Case Study of Hangzhou," Sustainability, MDPI, vol. 14(5), pages 1-20, February.
    11. Robert Szydło & Sylwia Wiśniewska & Małgorzata Tyrańska & Anna Dolot & Urszula Bukowska & Marek Koczyński, 2021. "Employer Expectations Regarding the Competencies of Employees on the Energy Market in Poland," Energies, MDPI, vol. 14(21), pages 1-21, November.

    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. Prasenjit Pramanik & Manas Kumar Maiti & Manoranjan Maiti, 2018. "An appropriate business strategy for a sale item," OPSEARCH, Springer;Operational Research Society of India, vol. 55(1), pages 85-106, March.
    2. Ranveer Singh Rana & Dinesh Kumar & Kanika Prasad & K. Mathiyazhagan, 2024. "Mitigating the impact of demand disruption on perishable inventory in a two-warehouse system," Operations Management Research, Springer, vol. 17(2), pages 469-504, June.
    3. Chung, Kun-Jen & Eduardo Cárdenas-Barrón, Leopoldo & Ting, Pin-Shou, 2014. "An inventory model with non-instantaneous receipt and exponentially deteriorating items for an integrated three layer supply chain system under two levels of trade credit," International Journal of Production Economics, Elsevier, vol. 155(C), pages 310-317.
    4. Sarkar, Biswajit & Sarkar, Mitali & Ganguly, Baishakhi & Cárdenas-Barrón, Leopoldo Eduardo, 2021. "Combined effects of carbon emission and production quality improvement for fixed lifetime products in a sustainable supply chain management," International Journal of Production Economics, Elsevier, vol. 231(C).
    5. Chandan Mahato & Gour Chandra Mahata, 2021. "Optimal inventory policies for deteriorating items with expiration date and dynamic demand under two-level trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 994-1017, December.
    6. Aditi Khanna & Aakanksha Kishore & Biswajit Sarkar & Chandra K. Jaggi, 2018. "Supply Chain with Customer-Based Two-Level Credit Policies under an Imperfect Quality Environment," Mathematics, MDPI, vol. 6(12), pages 1-35, December.
    7. Xu, Xinhan & Chen, Xiangfeng & Jia, Fu & Brown, Steve & Gong, Yu & Xu, Yifan, 2018. "Supply chain finance: A systematic literature review and bibliometric analysis," International Journal of Production Economics, Elsevier, vol. 204(C), pages 160-173.
    8. Beatriz Abdul-Jalbar & Roberto Dorta-Guerra & José M. Gutiérrez & Joaquín Sicilia, 2021. "Production/Inventory Policies for a Two-Echelon System with Credit Period Incentives," Mathematics, MDPI, vol. 9(15), pages 1-25, July.
    9. Tian, Yi & Ma, Junhai & Xie, Lei & Koivumäki, Timo & Seppänen, Veikko, 2020. "Coordination and control of multi-channel supply chain driven by consumers’ channel preference and sales effort," Chaos, Solitons & Fractals, Elsevier, vol. 132(C).
    10. Manoranjan De & Barun Das & Manoranjan Maiti, 2016. "EPL models for complementary and substitute items under imperfect production process with promotional cost and selling price dependent demands," OPSEARCH, Springer;Operational Research Society of India, vol. 53(2), pages 259-277, June.
    11. B. C. Giri & S. Sharma, 2016. "Optimal ordering policy for an inventory system with linearly increasing demand and allowable shortages under two levels trade credit financing," Operational Research, Springer, vol. 16(1), pages 25-50, April.
    12. Huang, Chao-Kuei & Tsai, Deng-Maw & Wu, Ji-Cheng & Chung, Kun-Jen, 2010. "An integrated vendor-buyer inventory model with order-processing cost reduction and permissible delay in payments," European Journal of Operational Research, Elsevier, vol. 202(2), pages 473-478, April.
    13. Fei Hu & Cheng-Chew Lim & Zudi Lu, 2015. "The retailer’s optimal decision on order quantity and credit periods under two-level trade credit policy," Journal of Global Optimization, Springer, vol. 62(4), pages 833-852, August.
    14. Li, Ruihai & Skouri, Konstantina & Teng, Jinn-Tsair & Yang, Wen-Goang, 2018. "Seller's optimal replenishment policy and payment term among advance, cash, and credit payments," International Journal of Production Economics, Elsevier, vol. 197(C), pages 35-42.
    15. Taleizadeh, Ata Allah & Pentico, David W. & Saeed Jabalameli, Mohammad & Aryanezhad, Mirbahador, 2013. "An EOQ model with partial delayed payment and partial backordering," Omega, Elsevier, vol. 41(2), pages 354-368.
    16. Emad Sane-Zerang & Jafar Razmi & Ata Allah Taleizadeh, 2020. "Coordination in a closed-loop supply chain under asymmetric and symmetric information with sales effort-dependent demand," Journal of Business Economics, Springer, vol. 90(2), pages 303-334, March.
    17. Yang Yang & Xuezheng Chen & Jing Gu & Hamido Fujita, 2019. "Alleviating Financing Constraints of SMEs through Supply Chain," Sustainability, MDPI, vol. 11(3), pages 1-19, January.
    18. Luis A. San-José & Joaquín Sicilia & Manuel González-de-la-Rosa & Jaime Febles-Acosta, 2022. "Profit maximization in an inventory system with time-varying demand, partial backordering and discrete inventory cycle," Annals of Operations Research, Springer, vol. 316(2), pages 763-783, September.
    19. Kajjoune, Oussama & Aouam, Tarik & Zouadi, Tarik & Ranjan, Ravi Prakash, 2023. "Dynamic lot-sizing in a two-stage supply chain with liquidity constraints and financing options," International Journal of Production Economics, Elsevier, vol. 258(C).
    20. Sudip Adak & G. S. Mahapatra, 2022. "Effect of reliability on multi-item inventory system with shortages and partial backlog incorporating time dependent demand and deterioration," Annals of Operations Research, Springer, vol. 315(2), pages 1551-1571, 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:gam:jeners:v:14:y:2021:i:6:p:1569-:d:515602. 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.