A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand

This paper aims to minimize the emissions in the supply chain consisting of a vendor and a buyer under carbon regulations. Emissions from the supply chain are generated by several operations, namely production, transportation and storage, and are sought to be reduced by implementing a carbon tax pol...

Full description

Saved in:
Bibliographic Details
Main Authors: Wakhid Ahmad Jauhari, Ivan Darma Wangsa, Hawa Hishamuddin, Novrianty Rizky
Format: Article
Language:English
Published: Taylor & Francis Group 2023-12-01
Series:Cogent Business & Management
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/23311975.2022.2158609
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850210993497440256
author Wakhid Ahmad Jauhari
Ivan Darma Wangsa
Hawa Hishamuddin
Novrianty Rizky
author_facet Wakhid Ahmad Jauhari
Ivan Darma Wangsa
Hawa Hishamuddin
Novrianty Rizky
author_sort Wakhid Ahmad Jauhari
collection DOAJ
description This paper aims to minimize the emissions in the supply chain consisting of a vendor and a buyer under carbon regulations. Emissions from the supply chain are generated by several operations, namely production, transportation and storage, and are sought to be reduced by implementing a carbon tax policy. To cope with the carbon policy, the vendor is actively looking for the best strategy to reduce emission rates, one of which is by investing in green technology. Besides being able to reduce the amount of carbon produced, the investment made can also save the amount of energy needed in the production process. To support the investment, the government provides green incentives, the amount of which is determined based on the achievement of emission reduction targets. The objective of the proposed model is to simultaneously determine the review period, safety factor, number of shipments and green investment such that the joint total cost is minimised. An efficient method is developed in this paper to obtain the optimum solution for the model. A numerical example and a sensitivity analysis are provided to illustrate the application of the model and to examine the impact of key parameters on model behaviour and performance. The result indicates that the implemented green policies, namely carbon tax, green incentive and green investment, can improve the economic and environmental performances of the supply chain.
format Article
id doaj-art-d22d518a2e904c5a9c2edcacce426baf
institution OA Journals
issn 2331-1975
language English
publishDate 2023-12-01
publisher Taylor & Francis Group
record_format Article
series Cogent Business & Management
spelling doaj-art-d22d518a2e904c5a9c2edcacce426baf2025-08-20T02:09:38ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110110.1080/23311975.2022.2158609A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demandWakhid Ahmad Jauhari0Ivan Darma Wangsa1Hawa Hishamuddin2Novrianty Rizky3Department of Industrial Engineering, Universitas Sebelas Maret, Surakarta, IndonesiaDepartment of Industrial and Systems Engineering, Institut Teknologi Sepuluh Nopember, Surabaya, IndonesiaDepartment of Mechanical and Manufacturing Engineering, Faculty of Engineering and Built Environment, Universiti Kebangsaan Malaysia, Selangor, MalaysiaDepartment of Industrial Engineering, Faculty of Industrial Technology, Universitas Islam Indonesia, Yogyakarta, IndonesiaThis paper aims to minimize the emissions in the supply chain consisting of a vendor and a buyer under carbon regulations. Emissions from the supply chain are generated by several operations, namely production, transportation and storage, and are sought to be reduced by implementing a carbon tax policy. To cope with the carbon policy, the vendor is actively looking for the best strategy to reduce emission rates, one of which is by investing in green technology. Besides being able to reduce the amount of carbon produced, the investment made can also save the amount of energy needed in the production process. To support the investment, the government provides green incentives, the amount of which is determined based on the achievement of emission reduction targets. The objective of the proposed model is to simultaneously determine the review period, safety factor, number of shipments and green investment such that the joint total cost is minimised. An efficient method is developed in this paper to obtain the optimum solution for the model. A numerical example and a sensitivity analysis are provided to illustrate the application of the model and to examine the impact of key parameters on model behaviour and performance. The result indicates that the implemented green policies, namely carbon tax, green incentive and green investment, can improve the economic and environmental performances of the supply chain.https://www.tandfonline.com/doi/10.1080/23311975.2022.2158609carbon taxgreen technologygovernment incentivesupply chaininventory
spellingShingle Wakhid Ahmad Jauhari
Ivan Darma Wangsa
Hawa Hishamuddin
Novrianty Rizky
A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
Cogent Business & Management
carbon tax
green technology
government incentive
supply chain
inventory
title A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
title_full A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
title_fullStr A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
title_full_unstemmed A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
title_short A sustainable vendor-buyer inventory model with incentives, green investment and energy usage under stochastic demand
title_sort sustainable vendor buyer inventory model with incentives green investment and energy usage under stochastic demand
topic carbon tax
green technology
government incentive
supply chain
inventory
url https://www.tandfonline.com/doi/10.1080/23311975.2022.2158609
work_keys_str_mv AT wakhidahmadjauhari asustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT ivandarmawangsa asustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT hawahishamuddin asustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT novriantyrizky asustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT wakhidahmadjauhari sustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT ivandarmawangsa sustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT hawahishamuddin sustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand
AT novriantyrizky sustainablevendorbuyerinventorymodelwithincentivesgreeninvestmentandenergyusageunderstochasticdemand