IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v9y2017i3p476-d93767.html
   My bibliography  Save this article

Sustainable EOQ under Lead-Time Uncertainty and Multi-Modal Transport

Author

Listed:
  • Soon-Kyo Lee

    (School of Industrial Management Engineering, Korea University, Seoul 02841, Korea)

  • Seung Ho Yoo

    (Division of Business Administration, Sunmoon University, Asan, Chungnam 31460, Korea)

  • Taesu Cheong

    (School of Industrial Management Engineering, Korea University, Seoul 02841, Korea)

Abstract

In this paper, we examine a sustainable economic order quantity (S-EOQ) problem with a stochastic lead-time and multi-modal transportation options. With the S-EOQ, decisions of order quantities, as well as a reorder point could be influenced by various factors, including unit price, stock-out cost, lead-time variability and emission costs. For a better understanding, we present a mathematical model of the concomitant S-EOQ problem and, using numerical experiments, explore various scenarios to determine the effects of incorporating sustainability considerations into the traditional inventory model on operational decisions including the choice of transportation modal combination and the sourcing decisions

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:476-:d:93767
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/9/3/476/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/9/3/476/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Rai, Deepak & Sodagar, Behzad & Fieldson, Rosi & Hu, Xiao, 2011. "Assessment of CO2 emissions reduction in a distribution warehouse," Energy, Elsevier, vol. 36(4), pages 2271-2277.
    3. 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.
    4. Zied Jemai & Y Bouchery & Asma Ghaffari & Yves Dallery, 2012. "Including sustainability criteria into inventory models," Post-Print hal-01672398, HAL.
    5. Ilkyeong Moon & Yoon Jea Jeong & Subrata Saha, 2016. "Fuzzy Bi-Objective Production-Distribution Planning Problem under the Carbon Emission Constraint," Sustainability, MDPI, vol. 8(8), pages 1-17, August.
    6. 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.
    7. Simeon Djankov & Caroline Freund & Cong S. Pham, 2010. "Trading on Time," The Review of Economics and Statistics, MIT Press, vol. 92(1), pages 166-173, February.
    8. 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.
    9. Wahab, M.I.M. & Mamun, S.M.H. & Ongkunaruk, P., 2011. "EOQ models for a coordinated two-level international supply chain considering imperfect items and environmental impact," International Journal of Production Economics, Elsevier, vol. 134(1), pages 151-158, November.
    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. Chandan Mahato & Gour Chandra Mahata, 2023. "Sustainable partial backordering inventory model under linked-to-order credit policy and all-units discount with capacity constraint and carbon emissions," Flexible Services and Manufacturing Journal, Springer, vol. 35(3), pages 896-944, September.

    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. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. Lucas Dias Condeixa & Pierry Silva & Diego Moah & Brenda Farias & Adriana Leiras, 2022. "Evaluating cost impacts on reverse logistics using an Economic Order Quantity (EOQ) model with environmental and social considerations," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 30(3), pages 921-940, September.
    10. K. M. Kamna & Priyamvada & Jitendra Singh & Chandra K. Jaggi, 2024. "A green strategic approach towards a smart production system with promotional and environment sensitive demand," 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. 15(8), pages 3672-3687, August.
    11. 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.
    12. Jin-Kyung Kwak, 2021. "An Order-Up-to Inventory Model with Sustainability Consideration," Sustainability, MDPI, vol. 13(23), pages 1-8, December.
    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. Palanivel Muthusamy & Venkadesh Murugesan & Vetriselvi Selvaraj, 2024. "Optimal production–inventory decision with shortage for deterioration item and effect of carbon emission policy combination with green technology," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 23701-23766, September.
    15. 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.
    16. Khan, Mehmood & Hussain, Matloub & Saber, Hussein M., 2016. "Information sharing in a sustainable supply chain," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 208-214.
    17. 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.
    18. 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.
    19. Y Bouchery & Asma Ghaffari & Zied Jemai & Jan C Fransoo, 2016. "Sustainable transportation and order quantity: insights from multiobjective optimization," Post-Print hal-01954465, HAL.
    20. Arqum Mateen & Abhishek Srivastava & Ashis Kumar Chatterjee, 2020. "Strategic selection of VMI replenishment policy with emission costs: an analytical approach," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 401-414, December.

    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:9:y:2017:i:3:p:476-:d:93767. 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.