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A collaborative inventory model for vendor-buyer system with stochastic demand, defective items and carbon emission cost

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  • Wakhid Ahmad Jauhari

Abstract

This paper develops a joint economic lot-sizing problem (JELP) involving of a vendor and a buyer under defective products. The vendor's production process is assumed to be imperfect, hence the lot delivered to the buyer may contain a certain number of imperfect products with known probability density function. The carbon emissions are considered in the model and are calculated from both transportation and production activities. The model also considers a situation in which the vendor has an opportunity to adjust the production rate. The objective of the model is to minimise total cost by simultaneously determining the shipment size, number of deliveries, production rate and safety factor. An iterative procedure is suggested for solving the model. Numerical examples are used to illustrate the application of the model.

Suggested Citation

  • Wakhid Ahmad Jauhari, 2018. "A collaborative inventory model for vendor-buyer system with stochastic demand, defective items and carbon emission cost," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 29(2), pages 241-269.
    • Handle: RePEc:ids:ijlsma:v:29:y:2018:i:2:p:241-269
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    Citations

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    Cited by:

    1. 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.
    2. Dipak Barman & Gour Chandra Mahata & Barun Das, 2021. "Advance payment based vendor–buyer production inventory model with stochastic lead time and continuous review policy," OPSEARCH, Springer;Operational Research Society of India, vol. 58(4), pages 1217-1237, December.
    3. Glock, Christoph H. & Grosse, Eric H., 2021. "The impact of controllable production rates on the performance of inventory systems: A systematic review of the literature," European Journal of Operational Research, Elsevier, vol. 288(3), pages 703-720.
    4. 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.

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