Including sustainability criteria into inventory models

Zied Jemai (), Y Bouchery (), Asma Ghaffari () and Yves Dallery ()
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Zied Jemai: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Y Bouchery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Asma Ghaffari: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec
Yves Dallery: LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec

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Abstract: Research on sustainability performance has considerably enriched operations management literature in recent years. However, work with quantitative models is still scarce. This paper contributes by revisiting classical inventory methods taking sustainability concerns into account. We believe that reducing all aspects of sustainable development to a single objective is not desirable. We thus reformulate the classical economic order quantity model as a multiobjective problem. We refer to this model as the sustainable order quantity model. Then, a multi-echelon extension of the sustainable order quantity model is studied. For both models, the set of efficient solutions (Pareto optimal solutions) is analytically characterized. These results are used to provide some insights about the effectiveness of different regulatory policies to control carbon emissions. We also use an interactive procedure that allows the decision maker to quickly identify the best option among these solutions. The proposed interactive procedure is a new combination of multi-criteria decision analysis techniques.

Keywords: Inventory; Sustainable supply chains; Multiobjective optimization; Interactive procedure (search for similar items in EconPapers)
Date: 2012-10
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Citations: View citations in EconPapers (76)

Published in European Journal of Operational Research, 2012, 222 (2), pp.229 - 240. ⟨10.1016/j.ejor.2012.05.004⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01672398

DOI: 10.1016/j.ejor.2012.05.004

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