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Impact of coordination on costs and carbon emissions for a two-echelon serial economic order quantity problem

Author

Listed:
  • Zied Jemai

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Y Bouchery

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Asma Ghaffari

    (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec)

  • Tarkan Tan

Abstract

Coordination in supply chains consists in aligning the decisions made by several echelons to reach a globally optimal solution called the centralized solution, and to share the benefits among the actors. This concept has been studied widely from a cost optimization perspective but coordination is also proposed by practitioners and academics as a solution to reduce carbon emissions. This article compares the costs and carbon emissions resulting from a non-coordinated two-echelon serial economic order quantity model to that of the centralized solution. Our model accounts for transportation and inventory related costs and emissions and we consider vehicle capacities. We derive new results to solve the problem in the non-coordinated and in the centralized cases. We provide sufficient conditions ensuring that coordination enables reducing both costs and emissions and we show that these conditions are satisfied in many applications. On the other hand, we also identify situations for which coordination leads to an increase in emissions and we provide sufficient conditions. In such situations, we additionally show how to obtain a solution decreasing both costs and carbon emissions. We use multiobjective optimization to identify all these solutions and we provide a series of insights.

Suggested Citation

  • Zied Jemai & Y Bouchery & Asma Ghaffari & Tarkan Tan, 2017. "Impact of coordination on costs and carbon emissions for a two-echelon serial economic order quantity problem," Post-Print hal-01672384, HAL.
  • Handle: RePEc:hal:journl:hal-01672384
    DOI: 10.1016/j.ejor.2016.12.018
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    Citations

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    Cited by:

    1. Meherishi, Lavanya & Narayana, Sushmita A. & Ranjani, K.S., 2021. "Integrated product and packaging decisions with secondary packaging returns and protective packaging management," European Journal of Operational Research, Elsevier, vol. 292(3), pages 930-952.
    2. Saberi, Sara, 2018. "Sustainable, multiperiod supply chain network model with freight carrier through reduction in pollution stock," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 118(C), pages 421-444.
    3. Yosef Daryanto & Hui Ming Wee & Gede Agus Widyadana, 2019. "Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items," Mathematics, MDPI, vol. 7(3), pages 1-24, March.
    4. Chen, Xi & Benjaafar, Saif & Elomri, Adel, 2019. "On the effectiveness of emission penalties in decentralized supply chains," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1155-1167.
    5. Dimitris Zissis & George Ioannou & Apostolos Burnetas, 2020. "Coordinating Lot Sizing Decisions Under Bilateral Information Asymmetry," Production and Operations Management, Production and Operations Management Society, vol. 29(2), pages 371-387, February.
    6. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    7. Chan, Chi Kin & Fang, Fei & Langevin, André, 2018. "Single-vendor multi-buyer supply chain coordination with stochastic demand," International Journal of Production Economics, Elsevier, vol. 206(C), pages 110-133.
    8. Dwi Iryaning Handayani & Ilyas Masudin & Ahmad Rusdiansyah & Judi Suharsono, 2021. "Production-Distribution Model Considering Traceability and Carbon Emission: A Case Study of the Indonesian Canned Fish Food Industry," Logistics, MDPI, vol. 5(3), pages 1-21, September.
    9. Daiki Min & Kwanghun Chung, 2017. "A Joint Optimal Decision on Shipment Size and Carbon Reduction under Direct Shipment and Peddling Distribution Strategies," Sustainability, MDPI, vol. 9(11), pages 1-21, November.
    10. Susu Cheng & Fan Zhang, 2022. "Regulatory pressure and consumer environmental awareness in a green supply chain with retailer responsibility: A dynamic analysis," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(4), pages 1133-1151, June.
    11. Zhimiao Tao & Jiuping Xu, 2019. "Carbon-Regulated EOQ Models with Consumers’ Low-Carbon Awareness," Sustainability, MDPI, vol. 11(4), pages 1-16, February.

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