Low Carbon Supply Chain Coordination for Imperfect Quality Deteriorating Items

Yosef Daryanto, Hui Ming Wee and Gede Agus Widyadana
Additional contact information
Yosef Daryanto: Department of Industrial and Systems Engineering, Chung Yuan Christian University, 200 Chung-Pei Rd., 32023 Chung-li, Taoyuan, Taiwan
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

Mathematics, 2019, vol. 7, issue 3, 1-24

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.

Keywords: supply chain inventory; imperfect quality; inspection; carbon emission; deteriorating items (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://www.mdpi.com/2227-7390/7/3/234/pdf (application/pdf)
https://www.mdpi.com/2227-7390/7/3/234/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jmathe:v:7:y:2019:i:3:p:234-:d:211200

Access Statistics for this article

Mathematics is currently edited by Ms. Emma He

More articles in Mathematics from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().