Effects of Carbon-Emission and Setup Cost Reduction in a Sustainable Electrical Energy Supply Chain Inventory System

Umakanta Mishra, Jei-Zheng Wu and Anthony Shun Fung Chiu
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Umakanta Mishra: Department of Business Administration, Soochow University, 56 Section 1, Kuei-yang Street, Taipei 10048, Taiwan
Jei-Zheng Wu: Department of Business Administration, Soochow University, 56 Section 1, Kuei-yang Street, Taipei 10048, Taiwan
Anthony Shun Fung Chiu: Don Antonio Cojuangco Professorial Chair of Industrial Technology University Fellow, Professor and Research Fellow Gokongwei College of Engineering, De La Salle University Manila, Manila 0922, Philippines

Energies, 2019, vol. 12, issue 7, 1-18

Abstract: This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights.

Keywords: sustainable electrical energy supply chain; inventory; price-dependent demand; transmission and distribution costs; carbon-emission (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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