IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i20p11456-d658120.html
   My bibliography  Save this article

Sustainable Decision-Making Approach for Dual-Channel Manufacturing Systems under Space Constraints

Author

Listed:
  • P. Mala

    (Department of Mathematics, Kamaraj College of Engineering and Technology, Madurai 625701, India)

  • M. Palanivel

    (Department of Mathematics, Mepco Schlenk Engineering College, Sivakasi 626005, India)

  • S. Priyan

    (Faculty of Mathematics, Department of Information Technology & Engineering, Amity University, Tashkent 100028, Uzbekistan)

  • N. Anbazhagan

    (Department of Mathematics, Alagappa University, Karaikudi 630003, India)

  • Srijana Acharya

    (Department of Convergence Science, Kongju National University, Gongju 32588, Korea)

  • Gyanendra Prasad Joshi

    (Department of Computer Science and Engineering, Sejong University, Seoul 05006, Korea)

  • Joohan Ryoo

    (Division of International Studies, Hanyang University, Seoul 04763, Korea)

Abstract

In response to the digital revolution, nowadays, many companies operate online and offline businesses in parallel to ensure their future competitiveness. This research examines the inventory strategy for multi-product vendor-buyer supply chain systems, considering space constraints and carbon emissions, in order to improve competence in managing online and offline integrated orders. We amalgamate costs and emissions in transport and storage. Here, we divide the warehouse of the buyer into two stages: one for satisfying online orders and the other for satisfying offline orders. We also assume that additional crashing costs reduce the lead times for receiving products in the buyer’s warehouse. This study demonstrates a mathematical model in the form of a constrained non-linear programme (NLP) and derives a Lagrangian multiplier method to solve it. An iterative solution procedure is designed in order to attain sustainable manufacturing decisions, which are illustrated numerically.

Suggested Citation

  • P. Mala & M. Palanivel & S. Priyan & N. Anbazhagan & Srijana Acharya & Gyanendra Prasad Joshi & Joohan Ryoo, 2021. "Sustainable Decision-Making Approach for Dual-Channel Manufacturing Systems under Space Constraints," Sustainability, MDPI, vol. 13(20), pages 1-22, October.
  • Handle: RePEc:gam:jsusta:v:13:y:2021:i:20:p:11456-:d:658120
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/20/11456/pdf
    Download Restriction: no

    File URL: https://www.mdpi.com/2071-1050/13/20/11456/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Alawneh, Fawzat & Zhang, Guoqing, 2018. "Dual-channel warehouse and inventory management with stochastic demand," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 112(C), pages 84-106.
    2. Benioudakis, Myron & Burnetas, Apostolos & Ioannou, George, 2021. "Lead-time quotations in unobservable make-to-order systems with strategic customers: Risk aversion, load control and profit maximization," European Journal of Operational Research, Elsevier, vol. 289(1), pages 165-176.
    3. Sainathuni, Bhanuteja & Parikh, Pratik J. & Zhang, Xinhui & Kong, Nan, 2014. "The warehouse-inventory-transportation problem for supply chains," European Journal of Operational Research, Elsevier, vol. 237(2), pages 690-700.
    4. Strack, Géraldine & Pochet, Yves, 2010. "An integrated model for warehouse and inventory planning," European Journal of Operational Research, Elsevier, vol. 204(1), pages 35-50, July.
    5. He, Peng & He, Yong & Xu, Henry, 2019. "Channel structure and pricing in a dual-channel closed-loop supply chain with government subsidy," International Journal of Production Economics, Elsevier, vol. 213(C), pages 108-123.
    6. Zhang, Dayong & Zhang, Zhiwei & Ji, Qiang & Lucey, Brian & Liu, Jia, 2021. "Board characteristics, external governance and the use of renewable energy: International evidence," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 72(C).
    7. Hoque, Mohammad A. & Goyal, Suresh K., 2006. "A heuristic solution procedure for an integrated inventory system under controllable lead-time with equal or unequal sized batch shipments between a vendor and a buyer," International Journal of Production Economics, Elsevier, vol. 102(2), pages 217-225, August.
    8. Bai, Qingguo & Gong, Yeming (Yale) & Jin, Mingzhou & Xu, Xianhao, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," International Journal of Production Economics, Elsevier, vol. 208(C), pages 83-99.
    9. Qingguo Bai & Yeming Gong & Mingzhou Jin & Xianhao Xu, 2019. "Effects of carbon emission reduction on supply chain coordination with vendor-managed deteriorating product inventory," Post-Print hal-02312264, HAL.
    10. Fichtinger, J. & Ries, J. M. & Grosse, E. H. & Baker, P., 2015. "Assessing the environmental impact of integrated inventory and warehouse management," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 74211, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    11. Fichtinger, Johannes & Ries, Jörg M. & Grosse, Eric H. & Baker, Peter, 2015. "Assessing the environmental impact of integrated inventory and warehouse management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 717-729.
    12. 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.
    13. Tang, Shaolong & Wang, Wenjie & Cho, Stella & Yan, Hong, 2018. "Reducing emissions in transportation and inventory management: (R, Q) Policy with considerations of carbon reduction," European Journal of Operational Research, Elsevier, vol. 269(1), pages 327-340.
    14. He, Peng & He, Yong & Xu, Henry, 2020. "Buy-online-and-deliver-from-store strategy for a dual-channel supply chain considering retailer’s location advantage," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    15. Asl-Najafi, Javad & Yaghoubi, Saeed & Zand, Fatemeh, 2021. "Dual-channel supply chain coordination considering targeted capacity allocation under uncertainty," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 187(C), pages 566-585.
    Full references (including those not matched with items on IDEAS)

    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. Xia, Jing & Niu, Wenju, 2021. "Carbon-reducing contract design for a supply chain with environmental responsibility under asymmetric information," Omega, Elsevier, vol. 102(C).
    2. Fang Huang & Honghua Hu & Han Song & Haiyan Li & Shasha Zhang & Jia Zhai, 2023. "Allocation of the Carbon Emission Abatement Target in Low Carbon Supply Chain Considering Power Structure," Sustainability, MDPI, vol. 15(13), pages 1-19, July.
    3. Raza, Syed Asif & Govindaluri, Srikrishna Madhumohan, 2019. "Pricing strategies in a dual-channel green supply chain with cannibalization and risk aversion," Operations Research Perspectives, Elsevier, vol. 6(C).
    4. Zhitao Xu & Adel Elomri & Shaligram Pokharel & Fatih Mutlu, 2019. "The Design of Green Supply Chains under Carbon Policies: A Literature Review of Quantitative Models," Sustainability, MDPI, vol. 11(11), pages 1-20, May.
    5. Wen Cheng & Qunqi Wu & Fei Ye & Qian Li, 2022. "The Impact of Government Interventions and Consumer Green Preferences on the Competition between Green and Nongreen Supply Chains," Sustainability, MDPI, vol. 14(10), pages 1-34, May.
    6. Yingdan Zhang & Xuemei Fan & Yingying Cao & Jiahui Xue, 2024. "Exploring Symbiosis: Innovatively Unveiling the Interplay between the Cold Chain Logistics of Fresh Agricultural Products and the Ecological Environment," Agriculture, MDPI, vol. 14(4), pages 1-21, April.
    7. Mohammed Alnahhal & Bashir Salah & Mohammed Ruzayqat, 2022. "An Efficient Approach to Investigate the Tradeoff between Double Handling and Needed Capacity in Automated Distribution Centers," Sustainability, MDPI, vol. 14(13), pages 1-25, June.
    8. Battini, Daria & Glock, Christoph H. & Grosse, Eric H. & Persona, Alessandro & Sgarbossa, Fabio, 2017. "Reprint of “Ergo-lot-sizing: An approach to integrate ergonomic and economic objectives in manual materials handling”," International Journal of Production Economics, Elsevier, vol. 194(C), pages 32-42.
    9. Wang, Moran & Li, Xuerong & Wang, Shouyang, 2021. "Discovering research trends and opportunities of green finance and energy policy: A data-driven scientometric analysis," Energy Policy, Elsevier, vol. 154(C).
    10. Taleizadeh, Ata Allah & Shokr, Iman & Konstantaras, Ioannis & VafaeiNejad, Mahyar, 2020. "Stock replenishment policies for a vendor-managed inventory in a retailing system," Journal of Retailing and Consumer Services, Elsevier, vol. 55(C).
    11. Licheng Sun & Sui Fang, 2022. "Irrational Carbon Emission Transfers in Supply Chains under Environmental Regulation: Identification and Optimization," Sustainability, MDPI, vol. 14(3), pages 1-20, January.
    12. Mei, Qihuang & Li, Jianbin & Ursavas, Evrim & Zhu, Stuart X. & Luo, Xiaomeng, 2021. "Freight transportation planning in platform service supply chain considering carbon emissions," International Journal of Production Economics, Elsevier, vol. 240(C).
    13. Konur, Dinçer & Campbell, James F. & Monfared, Sepideh A., 2017. "Economic and environmental considerations in a stochastic inventory control model with order splitting under different delivery schedules among suppliers," Omega, Elsevier, vol. 71(C), pages 46-65.
    14. Lee, Jun-Yeon & Choi, Sungyong, 2021. "Supply chain investment and contracting for carbon emissions reduction: A social planner's perspective," International Journal of Production Economics, Elsevier, vol. 231(C).
    15. K. M. Kamna & Prerna Gautam & Chandra K. Jaggi, 0. "Sustainable inventory policy for an imperfect production system with energy usage and volume agility," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-9.
    16. Fang Qiu & Qifan Hu & Bing Xu, 2020. "Fresh Agricultural Products Supply Chain Coordination and Volume Loss Reduction Based on Strategic Consumer," IJERPH, MDPI, vol. 17(21), pages 1-25, October.
    17. Ghulam Naseer Shah & Muhammad Asim, 2019. "Impact of E-Logistics on Warehousing Management Performance at English Biscuit Manufacturing," Business Management and Strategy, Macrothink Institute, vol. 10(2), pages 132-162, December.
    18. Fan Liu & Ning Ma, 2019. "Multicriteria ABC Inventory Classification Using the Social Choice Theory," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    19. Govindan, Kannan & Kilic, Merve & Uyar, Ali & Karaman, Abdullah S., 2021. "Drivers and value-relevance of CSR performance in the logistics sector: A cross-country firm-level investigation," International Journal of Production Economics, Elsevier, vol. 231(C).
    20. Atashi Khoei, Arsham & Süral, Haldun & Tural, Mustafa Kemal, 2023. "Energy minimizing order picker forklift routing problem," European Journal of Operational Research, Elsevier, vol. 307(2), pages 604-626.

    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:jsusta:v:13:y:2021:i:20:p:11456-:d:658120. 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.