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...

Full description

Saved in:
Bibliographic Details
Main Author: Wakhid Ahmad Jauhari
Format: Article
Language:English
Published: Elsevier 2022-07-01
Series:Cleaner Logistics and Supply Chain
Subjects:
Online Access:http://www.sciencedirect.com/science/article/pii/S2772390922000282
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850060834911289344
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