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

Soon-Kyo Lee, Seung Ho Yoo and Taesu Cheong
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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

Sustainability, 2017, vol. 9, issue 3, 1-22

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

Keywords: EOQ; sustainability; lead-time uncertainty; multimodal (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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