IDEAS home Printed from https://ideas.repec.org/a/spr/opsear/v59y2022i4d10.1007_s12597-022-00599-9.html
   My bibliography  Save this article

Impact of carbon emission in two-echelon supply chain inventory decision with controllable deterioration and two-level trade-credit period

Author

Listed:
  • Nidhi Handa

    (KGC, Gurukul Kangri (Deemed to Be University))

  • S. R. Singh

    (CCS University)

  • Neha Punetha

    (KGC, Gurukul Kangri (Deemed to Be University))

Abstract

The aim of the supply chain is to integrate environmental aspects with energy efficiency consumption. This study considers an integrated two-echelon green supply chain with carbon emission from production, warehousing, transporting, deterioration of items, as well as disposing waste. The deterioration rate is controlled by utilizing preservation technology investment. Also, for the fast-growing business, the suppliers offer credit period to the retailer, and the same credit period is offered by retailer to end customers, which works as an influential strategy for attracting new customers and has a positive impact on sales. The whole model is studied in an inflationary environment. The discussed model was solved analytically and obtained the optimal solution in a quasi-closed form solution; and simultaneously optimizes the optimal time and preservation technology cost in a two-echelon supply chain model considering controllable deterioration, waste, and carbon emission. To illustrate the present study, a numerical analysis and a sensitivity analysis have been presented. The convexity is obtained analytically as well as graphically. The objective is to minimize total cost and to reduce total carbon emissions. The analysis of the proposed model shows that the optimal results are quite realistic and can be applied to minimize total cost and reduce total carbon emission of supply chain integration.

Suggested Citation

  • Nidhi Handa & S. R. Singh & Neha Punetha, 2022. "Impact of carbon emission in two-echelon supply chain inventory decision with controllable deterioration and two-level trade-credit period," OPSEARCH, Springer;Operational Research Society of India, vol. 59(4), pages 1555-1586, December.
    • Handle: RePEc:spr:opsear:v:59:y:2022:i:4:d:10.1007_s12597-022-00599-9
    DOI: 10.1007/s12597-022-00599-9
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s12597-022-00599-9
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s12597-022-00599-9?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Daryanto, Yosef & Wee, Hui Ming & Astanti, Ririn Diar, 2019. "Three-echelon supply chain model considering carbon emission and item deterioration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 368-383.
    2. K. F. Mary Latha & M. Ganesh Kumar & R. Uthayakumar, 2021. "Two echelon economic lot sizing problems with geometric shipment policy backorder price discount and optimal investment to reduce ordering cost," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1133-1163, December.
    3. Chandan Mahato & Gour Chandra Mahata, 2021. "Optimal inventory policies for deteriorating items with expiration date and dynamic demand under two-level trade credit," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 994-1017, December.
    4. 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.
    5. 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.
    6. Rau, Hsin & Wu, Mei-Ying & Wee, Hui-Ming, 2003. "Integrated inventory model for deteriorating items under a multi-echelon supply chain environment," International Journal of Production Economics, Elsevier, vol. 86(2), pages 155-168, November.
    7. Bibhas C. Giri & Ishani Ray, 2022. "Optimal sustainability investment and pricing decisions in a two-echelon supply chain with emissions-sensitive demand under cap-and-trade policy," OPSEARCH, Springer;Operational Research Society of India, vol. 59(3), pages 786-808, September.
    8. Ghiami, Yousef & Williams, Terry, 2015. "A two-echelon production-inventory model for deteriorating items with multiple buyers," International Journal of Production Economics, Elsevier, vol. 159(C), pages 233-240.
    9. He, Yong & Wang, Shou-Yang & Lai, K.K., 2010. "An optimal production-inventory model for deteriorating items with multiple-market demand," European Journal of Operational Research, Elsevier, vol. 203(3), pages 593-600, June.
    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. Maihami, Reza & Govindan, Kannan & Fattahi, Mohammad, 2019. "The inventory and pricing decisions in a three-echelon supply chain of deteriorating items under probabilistic environment," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 118-138.
    12. Chan, Chi Kin & Wong, Wai Him & Langevin, A. & Lee, Y.C.E., 2017. "An integrated production-inventory model for deteriorating items with consideration of optimal production rate and deterioration during delivery," International Journal of Production Economics, Elsevier, vol. 189(C), pages 1-13.
    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. 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.
    2. 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.
    3. 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.
    4. Sudip Adak & G. S. Mahapatra, 2021. "Effect of inspection and rework of probabilistic defective production on two-layer supply chain incorporating deterioration and reliability dependent 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. 12(3), pages 565-578, June.
    5. Daryanto, Yosef & Wee, Hui Ming & Astanti, Ririn Diar, 2019. "Three-echelon supply chain model considering carbon emission and item deterioration," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 368-383.
    6. 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.
    7. Fan Liu & Ning Ma, 2019. "Multicriteria ABC Inventory Classification Using the Social Choice Theory," Sustainability, MDPI, vol. 12(1), pages 1-19, December.
    8. 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).
    9. 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.
    10. Surendra Vikram Singh Padiyar & Vandana & Shiv Raj Singh & Dipti Singh & Mitali Sarkar & Bikash Koli Dey & Biswajit Sarkar, 2022. "Three-Echelon Supply Chain Management with Deteriorated Products under the Effect of Inflation," Mathematics, MDPI, vol. 11(1), pages 1-19, December.
    11. Jianming Cai & Xiaokang Li & Yue Liang & Shan Ouyang, 2021. "Collaborative Optimization of Storage Location Assignment and Path Planning in Robotic Mobile Fulfillment Systems," Sustainability, MDPI, vol. 13(10), pages 1-26, May.
    12. 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.
    13. Huang, Yeu-Shiang & Su, Wei-Jun & Lin, Zu-Liang, 2011. "A study on lead-time discount coordination for deteriorating products," European Journal of Operational Research, Elsevier, vol. 215(2), pages 358-366, December.
    14. Brandenburg, Marcus, 2017. "A hybrid approach to configure eco-efficient supply chains under consideration of performance and risk aspects," Omega, Elsevier, vol. 70(C), pages 58-76.
    15. Julia Freis & Philipp Vohlidka & Willibald A. Günthner, 2016. "Low-Carbon Warehousing: Examining Impacts of Building and Intra-Logistics Design Options on Energy Demand and the CO 2 Emissions of Logistics Centers," Sustainability, MDPI, vol. 8(5), pages 1-36, May.
    16. Biswas, Indranil & Gupta, Rohit & Tiwari, Sunil & Talluri, Srinivas, 2023. "Multi-echelon supply chain coordination: Contract sequence and cut-off policies," International Journal of Production Economics, Elsevier, vol. 259(C).
    17. Sara Perotti & Lorenzo Bruno Prataviera & Marco Melacini, 2022. "Assessing the environmental impact of logistics sites through CO2eq footprint computation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1679-1694, May.
    18. Bakker, Monique & Riezebos, Jan & Teunter, Ruud H., 2012. "Review of inventory systems with deterioration since 2001," European Journal of Operational Research, Elsevier, vol. 221(2), pages 275-284.
    19. Eleonora Bottani & Giorgia Casella & Majcol Nobili & Letizia Tebaldi, 2022. "An Analytic Model for Estimating the Economic and Environmental Impact of Food Cold Supply Chain," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    20. Marco Giacomelli & Francesco Pilati & Matteo Brunelli, 2024. "Bi-Objective Inventory Policy with Comprehensive Environmental Factors Formulation and Service Level Constraints," Sustainability, MDPI, vol. 16(17), pages 1-18, September.

    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:spr:opsear:v:59:y:2022:i:4:d:10.1007_s12597-022-00599-9. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.