IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v13y2021i23p13305-d692724.html
   My bibliography  Save this article

An Order-Up-to Inventory Model with Sustainability Consideration

Author

Listed:
  • Jin-Kyung Kwak

    (Ewha School of Business, Ewha Womans University, Seoul 03760, Korea)

Abstract

Along with growing interest in environmental concerns these days, significant academic efforts have been exerted to incorporate sustainability issues into the existing inventory models except for fixed-review interval (i.e., order-up-to models). In this study, we develop an order-up-to model considering environment-related costs and investigate the value of this new policy over the naïve one. Results of an extensive simulation study reveal that sustainability consideration reduces the total costs and that its value is higher when the mean demand is higher, when demand is more variable, when the costs of transshipment or inventory holding are lower, or when an ordering setup cost or an additional indirect cost of having inventory are higher. These findings fill the research gap in existing literature and contribute to managerial implications for periodic inventory control in practice.

Suggested Citation

  • Jin-Kyung Kwak, 2021. "An Order-Up-to Inventory Model with Sustainability Consideration," Sustainability, MDPI, vol. 13(23), pages 1-8, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13305-:d:692724
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/13/23/13305/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/13/23/13305/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Sungyong Choi, 2018. "A Loss-Averse Newsvendor with Cap-and-Trade Carbon Emissions Regulation," Sustainability, MDPI, vol. 10(7), pages 1-12, June.
    2. Victoria C. P. Chen & David Ruppert & Christine A. Shoemaker, 1999. "Applying Experimental Design and Regression Splines to High-Dimensional Continuous-State Stochastic Dynamic Programming," Operations Research, INFORMS, vol. 47(1), pages 38-53, February.
    3. Mária Stopková & Ondrej Stopka & Vladimír Ľupták, 2019. "Inventory Model Design by Implementing New Parameters into the Deterministic Model Objective Function to Streamline Effectiveness Indicators of the Inventory Management," Sustainability, MDPI, vol. 11(15), pages 1-15, August.
    4. 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.
    5. Biswajit Sarkar & Waqas Ahmed & Seok-Beom Choi & Muhammad Tayyab, 2018. "Sustainable Inventory Management for Environmental Impact through Partial Backordering and Multi-Trade-Credit-Period," Sustainability, MDPI, vol. 10(12), pages 1-28, December.
    6. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    7. Zied Jemai & Y Bouchery & Asma Ghaffari & Yves Dallery, 2012. "Including sustainability criteria into inventory models," Post-Print hal-01672398, HAL.
    8. Bonney, Maurice & Jaber, Mohamad Y., 2011. "Environmentally responsible inventory models: Non-classical models for a non-classical era," International Journal of Production Economics, Elsevier, vol. 133(1), pages 43-53, September.
    9. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Dallery, Yves, 2012. "Including sustainability criteria into inventory models," European Journal of Operational Research, Elsevier, vol. 222(2), pages 229-240.
    10. Antonio Forcina & Antonella Petrillo & Gianpaolo Di Bona & Fabio De Felice & Alessandro Silvestri, 2017. "An innovative model to optimise inventory management: a case study in healthcare sector," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 27(4), pages 549-568.
    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. Daria Battini & Martina Calzavara & Ilaria Isolan & Fabio Sgarbossa & Francesco Zangaro, 2018. "Sustainability in Material Purchasing: A Multi-Objective Economic Order Quantity Model under Carbon Trading," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    2. Andriolo, Alessandro & Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2015. "Haulage sharing approach to achieve sustainability in material purchasing: New method and numerical applications," International Journal of Production Economics, Elsevier, vol. 164(C), pages 308-318.
    3. Hovelaque, Vincent & Bironneau, Laurent, 2015. "The carbon-constrained EOQ model with carbon emission dependent demand," International Journal of Production Economics, Elsevier, vol. 164(C), pages 285-291.
    4. Yann Bouchery & Asma Ghaffari & Zied Jemai & Jan Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Flexible Services and Manufacturing Journal, Springer, vol. 28(3), pages 367-396, September.
    5. Soon-Kyo Lee & Seung Ho Yoo & Taesu Cheong, 2017. "Sustainable EOQ under Lead-Time Uncertainty and Multi-Modal Transport," Sustainability, MDPI, vol. 9(3), pages 1-22, March.
    6. Andriolo, Alessandro & Battini, Daria & Grubbström, Robert W. & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A century of evolution from Harris׳s basic lot size model: Survey and research agenda," International Journal of Production Economics, Elsevier, vol. 155(C), pages 16-38.
    7. 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.
    8. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    9. Schaefer, Brian & Konur, Dinçer, 2015. "Economic and environmental considerations in a continuous review inventory control system with integrated transportation decisions," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 80(C), pages 142-165.
    10. Katherinne Salas-Navarro & Paula Serrano-Pájaro & Holman Ospina-Mateus & Ronald Zamora-Musa, 2022. "Inventory Models in a Sustainable Supply Chain: A Bibliometric Analysis," Sustainability, MDPI, vol. 14(10), pages 1-21, May.
    11. McDonald, Conor M., 2016. "Integrating packaging and supply chain decisions: Selection of economic handling unit quantities," International Journal of Production Economics, Elsevier, vol. 180(C), pages 208-221.
    12. Battini, Daria & Persona, Alessandro & Sgarbossa, Fabio, 2014. "A sustainable EOQ model: Theoretical formulation and applications," International Journal of Production Economics, Elsevier, vol. 149(C), pages 145-153.
    13. 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.
    14. Jia-Liang Pan & Chui-Yu Chiu & Kun-Shan Wu & Chih-Te Yang & Yen-Wen Wang, 2021. "Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain," Energies, MDPI, vol. 14(22), pages 1-20, November.
    15. Harpreet Kaur & Surya Prakash Singh, 2019. "Sustainable procurement and logistics for disaster resilient supply chain," Annals of Operations Research, Springer, vol. 283(1), pages 309-354, December.
    16. 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.
    17. Tapan Kumar Datta & Sayantan Datta & Adrijit Goswami, 2024. "A sustainable bi-objective inventory model with source-based emissions and plan-based green investments under inflation and the present value of money," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 34(1), pages 91-117.
    18. Vahid Reza Soleymanfar & Ahmad Makui & Ata Allah Taleizadeh & Reza Tavakkoli-Moghaddam, 2022. "Sustainable EOQ and EPQ models for a two-echelon multi-product supply chain with return policy," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5317-5343, April.
    19. Aleksander Banasik & Jacqueline M. Bloemhof-Ruwaard & Argyris Kanellopoulos & G. D. H. Claassen & Jack G. A. J. Vorst, 2018. "Multi-criteria decision making approaches for green supply chains: a review," Flexible Services and Manufacturing Journal, Springer, vol. 30(3), pages 366-396, September.
    20. Gila E. Fruchter & Hussein Naseraldin, 2021. "Coordinating Carbon Emissions via Production Quantities: A Differential Game Approach," Games, MDPI, vol. 12(1), pages 1-16, February.

    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:23:p:13305-:d:692724. 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.