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

Author

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  • 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
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    References listed on IDEAS

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