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Investigating carbon emissions in a production-inventory model under imperfect production, inspection errors and service-level constraint

Author

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  • Rendy Surya Saga
  • Wakhid Ahmad Jauhari
  • Pringgo Widyo Laksono
  • Anindya Rachma Dwicahyani

Abstract

This paper discusses an integrated inventory model for vendor-buyer system with stochastic demand and service-level constraint. The buyer's demand follows a normal distribution and the lead time depends upon lot size. The buyer uses a periodic review policy to manage the inventory level. An imperfect production processes and inspection errors are considered in the model. Carbon emissions and energy impacts which are generated from transportation activity and production activity are also included in the model. An incentive and penalty policy are adopted to reduce the carbon emissions generated from supply chain system. The model contributes to the current literature by allowing the inclusion of imperfect production, inspection errors, carbon emissions and setup cost reduction. The objective of the model is to determine the review period, setup cost and the number of deliveries so that the total cost incurred has the minimum value. An iterative procedure is suggested to solve the model. A numerical example and sensitivity analysis are performed to illustrate the application of the model and to show the impact of the changes of key parameters on model behaviour.

Suggested Citation

  • Rendy Surya Saga & Wakhid Ahmad Jauhari & Pringgo Widyo Laksono & Anindya Rachma Dwicahyani, 2019. "Investigating carbon emissions in a production-inventory model under imperfect production, inspection errors and service-level constraint," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 34(1), pages 29-55.
    • Handle: RePEc:ids:ijlsma:v:34:y:2019:i:1:p:29-55
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    Citations

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    Cited by:

    1. 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.
    2. Dwi Iryaning Handayani & Ilyas Masudin & Ahmad Rusdiansyah & Judi Suharsono, 2021. "Production-Distribution Model Considering Traceability and Carbon Emission: A Case Study of the Indonesian Canned Fish Food Industry," Logistics, MDPI, vol. 5(3), pages 1-21, September.
    3. Wakhid Ahmad Jauhari & I Nyoman Pujawan & Mokh Suef, 2023. "Sustainable inventory management with hybrid production system and investment to reduce defects," Annals of Operations Research, Springer, vol. 324(1), pages 543-572, May.

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