IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v13y2020i4p999-d324223.html
   My bibliography  Save this article

Optimal Inventory Control Strategies for Deteriorating Items with a General Time-Varying Demand under Carbon Emission Regulations

Author

Listed:
  • Chunming Xu

    (Department of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, China)

  • Xiaojie Liu

    (Center for Management Innovation and Evaluation, Tianjin University of Commerce, Tianjin 300134, China)

  • Chenchen Wu

    (Department of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, China)

  • Baiyun Yuan

    (Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454000, China)

Abstract

Climate warming nowadays has caused people to increasingly enhance public awareness about carbon emissions from industries. In the storing industry, inventory management for deteriorating items is crucial in the business competition. To slow down the deterioration and ensure the quality of products, the items are usually stored in certain temperature-controlled environment. However, a lot of carbon emissions of the inventory system are caused by these warehousing activities. In a finite panning period, this paper studies a continuous review inventory system and proposes inventory models to analyze the impacts of carbon emissions on inventory system for deteriorating items with a general time-varying demand, in which shortages are allowed, and the customer demand during shortage period is partially backlogged till the next replenishment. Under carbon emission regulations, the existence and uniqueness of the optimal solution to each model is explored and comparisons of optimality among the proposed models are given. Numerical examples and robust analysis of the models are presented to illustrate the applicability in practice. Some management insights about inventory policies and emission reduction strategies are obtained.

Suggested Citation

  • Chunming Xu & Xiaojie Liu & Chenchen Wu & Baiyun Yuan, 2020. "Optimal Inventory Control Strategies for Deteriorating Items with a General Time-Varying Demand under Carbon Emission Regulations," Energies, MDPI, vol. 13(4), pages 1-20, February.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:4:p:999-:d:324223
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/13/4/999/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/13/4/999/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hua, Guowei & Cheng, T.C.E. & Wang, Shouyang, 2011. "Managing carbon footprints in inventory management," International Journal of Production Economics, Elsevier, vol. 132(2), pages 178-185, August.
    2. Lin, Shih-Wei, 2011. "Inventory models with managerial policy independent of demand," European Journal of Operational Research, Elsevier, vol. 211(3), pages 520-524, June.
    3. Bozorgi, Ali & Pazour, Jennifer & Nazzal, Dima, 2014. "A new inventory model for cold items that considers costs and emissions," International Journal of Production Economics, Elsevier, vol. 155(C), pages 114-125.
    4. Nita H. Shah & Digeshkumar B. Shah & Dushyantkumar G. Patel, 2015. "Optimal transfer, ordering and payment policies for joint supplier–buyer inventory model with price-sensitive trapezoidal demand and net credit," International Journal of Systems Science, Taylor & Francis Journals, vol. 46(10), pages 1752-1761, July.
    5. Bai, Qingguo & Chen, Mingyuan & Xu, Lei, 2017. "Revenue and promotional cost-sharing contract versus two-part tariff contract in coordinating sustainable supply chain systems with deteriorating items," International Journal of Production Economics, Elsevier, vol. 187(C), pages 85-101.
    6. Skouri, K. & Konstantaras, I. & Papachristos, S. & Ganas, I., 2009. "Inventory models with ramp type demand rate, partial backlogging and Weibull deterioration rate," European Journal of Operational Research, Elsevier, vol. 192(1), pages 79-92, January.
    7. YuJan Shen & KuanFu Shen & ChihTe Yang, 2019. "A Production Inventory Model for Deteriorating Items with Collaborative Preservation Technology Investment Under Carbon Tax," Sustainability, MDPI, vol. 11(18), pages 1-18, September.
    8. Goyal, S. K. & Giri, B. C., 2001. "Recent trends in modeling of deteriorating inventory," European Journal of Operational Research, Elsevier, vol. 134(1), pages 1-16, October.
    9. Dekker, Rommert & Bloemhof, Jacqueline & Mallidis, Ioannis, 2012. "Operations Research for green logistics – An overview of aspects, issues, contributions and challenges," European Journal of Operational Research, Elsevier, vol. 219(3), pages 671-679.
    10. Dye, Chung-Yuan & Hsieh, Tsu-Pang, 2012. "An optimal replenishment policy for deteriorating items with effective investment in preservation technology," European Journal of Operational Research, Elsevier, vol. 218(1), pages 106-112.
    11. Gérard P. Cachon & Robert Swinney, 2011. "The Value of Fast Fashion: Quick Response, Enhanced Design, and Strategic Consumer Behavior," Management Science, INFORMS, vol. 57(4), pages 778-795, April.
    12. Yang, Hui-Ling, 2012. "Two-warehouse partial backlogging inventory models with three-parameter Weibull distribution deterioration under inflation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 107-116.
    13. Mária Stopková & Ondrej Stopka & Vladimír Ľupták, 2019. "Inventory Model Design by Implementing New Parameters into the Deterministic Model Objective Function to Streamline Effectiveness Indicators of the Inventory Management," Sustainability, MDPI, vol. 11(15), pages 1-15, August.
    14. Dye, Chung-Yuan & Yang, Chih-Te, 2015. "Sustainable trade credit and replenishment decisions with credit-linked demand under carbon emission constraints," European Journal of Operational Research, Elsevier, vol. 244(1), pages 187-200.
    15. Zhang, Yue-Jun & Wang, Ao-Dong & Tan, Weiping, 2015. "The impact of China's carbon allowance allocation rules on the product prices and emission reduction behaviors of ETS-covered enterprises," Energy Policy, Elsevier, vol. 86(C), pages 176-185.
    16. 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.
    17. Cai, Gangshu (George) & Chiang, Wen-Chyuan & Chen, Xiangfeng, 2011. "Game theoretic pricing and ordering decisions with partial lost sales in two-stage supply chains," International Journal of Production Economics, Elsevier, vol. 130(2), pages 175-185, April.
    18. Dunbing Tang & Qi Wang & Inayat Ullah, 2017. "Optimisation of product configuration in consideration of customer satisfaction and low carbon," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3349-3373, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. G. Durga Bhavani & Ieva Meidute-Kavaliauskiene & Ghanshaym S. Mahapatra & Renata Činčikaitė, 2022. "A Sustainable Green Inventory System with Novel Eco-Friendly Demand Incorporating Partial Backlogging under Fuzziness," Sustainability, MDPI, vol. 14(15), pages 1-20, July.
    2. Pourya Pourhejazy, 2020. "Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics," Sustainability, MDPI, vol. 12(20), pages 1-12, October.
    3. Nabajyoti Bhattacharjee & Nabendu Sen, 2021. "An inventory model to study the effect of the probabilistic rate of carbon emission on the profit earned by a supplier," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(4), pages 5-33.

    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. Janssen, Larissa & Claus, Thorsten & Sauer, Jürgen, 2016. "Literature review of deteriorating inventory models by key topics from 2012 to 2015," International Journal of Production Economics, Elsevier, vol. 182(C), pages 86-112.
    2. Alamri, Adel A. & Syntetos, Aris A., 2018. "Beyond LIFO and FIFO: Exploring an Allocation-In-Fraction-Out (AIFO) policy in a two-warehouse inventory model," International Journal of Production Economics, Elsevier, vol. 206(C), pages 33-45.
    3. Wang, Wan-Chih & Teng, Jinn-Tsair & Lou, Kuo-Ren, 2014. "Seller’s optimal credit period and cycle time in a supply chain for deteriorating items with maximum lifetime," European Journal of Operational Research, Elsevier, vol. 232(2), pages 315-321.
    4. Tai, Allen H. & Xie, Yue & Ching, Wai-Ki, 2016. "Inspection policy for inventory system with deteriorating products," International Journal of Production Economics, Elsevier, vol. 173(C), pages 22-29.
    5. Mamta Gupta & Sunil Tiwari & Chandra K. Jaggi, 2020. "Retailer’s ordering policies for time-varying deteriorating items with partial backlogging and permissible delay in payments in a two-warehouse environment," Annals of Operations Research, Springer, vol. 295(1), pages 139-161, December.
    6. Cheng, Chun & Qi, Mingyao & Wang, Xingyi & Zhang, Ying, 2016. "Multi-period inventory routing problem under carbon emission regulations," International Journal of Production Economics, Elsevier, vol. 182(C), pages 263-275.
    7. Wu, Jiang & Chan, Ya-Lan, 2014. "Lot-sizing policies for deteriorating items with expiration dates and partial trade credit to credit-risk customers," International Journal of Production Economics, Elsevier, vol. 155(C), pages 292-301.
    8. Chandra K. Jaggi & Sunil Tiwari & Satish K. Goel, 2017. "Credit financing in economic ordering policies for non-instantaneous deteriorating items with price dependent demand and two storage facilities," Annals of Operations Research, Springer, vol. 248(1), pages 253-280, January.
    9. Ma, Xueli & Wang, Jian & Bai, Qingguo & Wang, Shuyun, 2020. "Optimization of a three-echelon cold chain considering freshness-keeping efforts under cap-and-trade regulation in Industry 4.0," International Journal of Production Economics, Elsevier, vol. 220(C).
    10. Wu, Jiang & Ouyang, Liang-Yuh & Cárdenas-Barrón, Leopoldo Eduardo & Goyal, Suresh Kumar, 2014. "Optimal credit period and lot size for deteriorating items with expiration dates under two-level trade credit financing," European Journal of Operational Research, Elsevier, vol. 237(3), pages 898-908.
    11. Li, Guiping & He, Xiuli & Zhou, Jing & Wu, Hao, 2019. "Pricing, replenishment and preservation technology investment decisions for non-instantaneous deteriorating items," Omega, Elsevier, vol. 84(C), pages 114-126.
    12. Bozorgi, Ali, 2016. "Multi-product inventory model for cold items with cost and emission consideration," International Journal of Production Economics, Elsevier, vol. 176(C), pages 123-142.
    13. Saha, Subrata & Sarkar, Biswajit & Sarkar, Mitali, 2023. "Application of improved meta-heuristic algorithms for green preservation technology management to optimize dynamical investments and replenishment strategies," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 209(C), pages 426-450.
    14. Mukunda Choudhury & Sujit Kumar De & Gour Chandra Mahata, 2023. "A pollution-sensitive multistage production-inventory model for deteriorating items considering expiration date under Stackelberg game approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11847-11884, October.
    15. Wu, Jiang & Chang, Chun-Tao & Teng, Jinn-Tsair & Lai, Kuei-Kuei, 2017. "Optimal order quantity and selling price over a product life cycle with deterioration rate linked to expiration date," International Journal of Production Economics, Elsevier, vol. 193(C), pages 343-351.
    16. Bouchery, Yann & Ghaffari, Asma & Jemai, Zied & Tan, Tarkan, 2017. "Impact of coordination on costs and carbon emissions for a two-echelon serial economic order quantity problem," European Journal of Operational Research, Elsevier, vol. 260(2), pages 520-533.
    17. Cao, Erbao & Yu, Man, 2019. "The bright side of carbon emission permits on supply chain financing and performance," Omega, Elsevier, vol. 88(C), pages 24-39.
    18. Beullens, Patrick & Ghiami, Yousef, 2022. "Waste reduction in the supply chain of a deteriorating food item – Impact of supply structure on retailer performance," European Journal of Operational Research, Elsevier, vol. 300(3), pages 1017-1034.
    19. Dye, Chung-Yuan, 2013. "The effect of preservation technology investment on a non-instantaneous deteriorating inventory model," Omega, Elsevier, vol. 41(5), pages 872-880.
    20. Pal, Shilpi & Mahapatra, G.S. & Samanta, G.P., 2014. "An EPQ model of ramp type demand with Weibull deterioration under inflation and finite horizon in crisp and fuzzy environment," International Journal of Production Economics, Elsevier, vol. 156(C), pages 159-166.

    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:gam:jeners:v:13:y:2020:i:4:p:999-:d:324223. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.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.