Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment
In this paper, a mathematical inventory model for a manufacturer-multi retailer system is proposed to optimize the inventory level and investments under a carbon tax policy. The energy consumed by the production and rework and the emissions resulting from supply chain operations are considered and c...
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| Format: | Article |
| Language: | English |
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Elsevier
2022-07-01
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| Series: | Cleaner Logistics and Supply Chain |
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| Online Access: | http://www.sciencedirect.com/science/article/pii/S2772390922000282 |
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| author | Wakhid Ahmad Jauhari |
| author_facet | Wakhid Ahmad Jauhari |
| author_sort | Wakhid Ahmad Jauhari |
| collection | DOAJ |
| description | In this paper, a mathematical inventory model for a manufacturer-multi retailer system is proposed to optimize the inventory level and investments under a carbon tax policy. The energy consumed by the production and rework and the emissions resulting from supply chain operations are considered and controlled using a production rate adjustment. To comply with the carbon policy, the manufacturer invests in green production technologies to cut down the emissions. The model aims to minimize the joint total cost by simultaneously determining the shipment frequencies, shipment lot, safety factor, production rate, collection rate and the investment. A numerical example and sensitivity analysis are given to show the application of the model and to study the impact of key parameters on model’s behaviour. The results suggest that by allowing the production rate to be adjusted flexibly, the system can easily control the emissions, energy consumption and the number of defects, so that the total cost can be minimized. The green investment is proven to be effective in reducing emissions and increasing returns on used products, thereby improving the environmental performance of the supply chain. |
| format | Article |
| id | doaj-art-7e6203a057bf45f0ab2481de2fa27111 |
| institution | DOAJ |
| issn | 2772-3909 |
| language | English |
| publishDate | 2022-07-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Cleaner Logistics and Supply Chain |
| spelling | doaj-art-7e6203a057bf45f0ab2481de2fa271112025-08-20T02:50:27ZengElsevierCleaner Logistics and Supply Chain2772-39092022-07-01410005510.1016/j.clscn.2022.100055Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investmentWakhid Ahmad Jauhari0Department of Industrial Engineering, Universitas Sebelas Maret, Surakarta, IndonesiaIn this paper, a mathematical inventory model for a manufacturer-multi retailer system is proposed to optimize the inventory level and investments under a carbon tax policy. The energy consumed by the production and rework and the emissions resulting from supply chain operations are considered and controlled using a production rate adjustment. To comply with the carbon policy, the manufacturer invests in green production technologies to cut down the emissions. The model aims to minimize the joint total cost by simultaneously determining the shipment frequencies, shipment lot, safety factor, production rate, collection rate and the investment. A numerical example and sensitivity analysis are given to show the application of the model and to study the impact of key parameters on model’s behaviour. The results suggest that by allowing the production rate to be adjusted flexibly, the system can easily control the emissions, energy consumption and the number of defects, so that the total cost can be minimized. The green investment is proven to be effective in reducing emissions and increasing returns on used products, thereby improving the environmental performance of the supply chain.http://www.sciencedirect.com/science/article/pii/S2772390922000282Inventory managementImperfect productionClosed-loop supply chainEmissionsEnergy consumptionCarbon tax |
| spellingShingle | Wakhid Ahmad Jauhari Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment Cleaner Logistics and Supply Chain Inventory management Imperfect production Closed-loop supply chain Emissions Energy consumption Carbon tax |
| title | Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment |
| title_full | Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment |
| title_fullStr | Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment |
| title_full_unstemmed | Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment |
| title_short | Sustainable inventory management for a closed-loop supply chain with energy usage, imperfect production, and green investment |
| title_sort | sustainable inventory management for a closed loop supply chain with energy usage imperfect production and green investment |
| topic | Inventory management Imperfect production Closed-loop supply chain Emissions Energy consumption Carbon tax |
| url | http://www.sciencedirect.com/science/article/pii/S2772390922000282 |
| work_keys_str_mv | AT wakhidahmadjauhari sustainableinventorymanagementforaclosedloopsupplychainwithenergyusageimperfectproductionandgreeninvestment |