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Sustainable EOQ under Lead-Time Uncertainty and Multi-Modal Transport

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  • Soon-Kyo Lee

    (School of Industrial Management Engineering, Korea University, Seoul 02841, Korea)

  • Seung Ho Yoo

    (Division of Business Administration, Sunmoon University, Asan, Chungnam 31460, Korea)

  • Taesu Cheong

    (School of Industrial Management Engineering, Korea University, Seoul 02841, Korea)

Abstract

In this paper, we examine a sustainable economic order quantity (S-EOQ) problem with a stochastic lead-time and multi-modal transportation options. With the S-EOQ, decisions of order quantities, as well as a reorder point could be influenced by various factors, including unit price, stock-out cost, lead-time variability and emission costs. For a better understanding, we present a mathematical model of the concomitant S-EOQ problem and, using numerical experiments, explore various scenarios to determine the effects of incorporating sustainability considerations into the traditional inventory model on operational decisions including the choice of transportation modal combination and the sourcing decisions

Suggested Citation

  • Soon-Kyo Lee & Seung Ho Yoo & Taesu Cheong, 2017. "Sustainable EOQ under Lead-Time Uncertainty and Multi-Modal Transport," Sustainability, MDPI, vol. 9(3), pages 1-22, March.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:3:p:476-:d:93767
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    References listed on IDEAS

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    Cited by:

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