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Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

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  • Yosef Daryanto

    (Department of Industrial and Systems Engineering, Chung Yuan Christian University, 200 Chung-Pei Rd., 32023 Chung-li, Taoyuan, Taiwan
    Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Jl. Babarsari 43, 55281 Yogyakarta, Indonesia)

  • Hui Ming Wee

    (Department of Industrial and Systems Engineering, Chung Yuan Christian University, 200 Chung-Pei Rd., 32023 Chung-li, Taoyuan, Taiwan)

  • Gede Agus Widyadana

    (Department of Industrial Engineering, Petra Christian University, Surabaya, East Java 60236, Indonesia)

Abstract

Nowadays, many countries have implemented carbon pricing policies. Hence, the industry adapts to this policy while striving for its main goal of maximizing financial benefits. Here, we study a single manufacturer–retailer inventory decision considering carbon emission cost and item deterioration for an imperfect production system. This study examines two models considering two cases of quality inspection. The first is when the buyer performs the quality inspection, and the second is when the quality inspection becomes the vendor’s responsibility so that no defective products are passed to the buyer. Carbon emission costs are incorporated under a carbon tax policy, and we consider the carbon footprint from transporting and warehousing the items. The objective is to jointly optimize the delivery quantity and number of deliveries per production cycle that minimize the total cost and reduce the total carbon emissions. This study provides solution procedures to solve the models, as well as two numerical examples.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jmathe:v:7:y:2019:i:3:p:234-:d:211200
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    References listed on IDEAS

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    Cited by:

    1. Mowmita Mishra & Soumya Kanti Hota & Santanu Kumar Ghosh & Biswajit Sarkar, 2020. "Controlling Waste and Carbon Emission for a Sustainable Closed-Loop Supply Chain Management under a Cap-and-Trade Strategy," Mathematics, MDPI, vol. 8(4), pages 1-24, March.
    2. Fang Dong & Chengdong Shi & Weitong Yu, 2022. "Coordinated Decision-Making in Embedded Supply Chain from a Sustainable Development Perspective," Sustainability, MDPI, vol. 15(1), pages 1-19, December.
    3. Asif Iqbal Malik & Biswajit Sarkar, 2020. "Coordination Supply Chain Management Under Flexible Manufacturing, Stochastic Leadtime Demand, and Mixture of Inventory," Mathematics, MDPI, vol. 8(6), pages 1-32, June.
    4. Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    5. Wakhid Ahmad Jauhari & I Nyoman Pujawan & Mokh Suef, 2023. "Sustainable inventory management with hybrid production system and investment to reduce defects," Annals of Operations Research, Springer, vol. 324(1), pages 543-572, May.

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