Three-echelon supply chain model considering carbon emission and item deterioration. (February 2019)

• Record Type: Journal Article
• Authors: Daryanto, Yosef; Wee, Hui Ming; Astanti, Ririn Diar
• Is Part Of: Transportation research. Volume 122(2019)
• Page Start: 368
• Page End: 383
• Publication Date: 2019-02
• Subjects: Three-echelon supply chain -- Inventory -- Deteriorating items -- Carbon emission; Logistics -- Periodicals; Transportation -- Periodicals; 388.011
• DOI: 10.1016/j.tre.2018.12.014
• Languages: English
• ISSNs: 1366-5545

Abstract

Highlights: A three-echelon supply chain model to reduce carbon emission is proposed. Sources of carbon emissions are transportation, items deterioration and waste disposal. Integrated decision model is developed to derive the number of delivery and lot size. The model minimizes both the total supply chain costs and carbon emission. Abstract: This study considers an integrated three-echelon supply chain with carbon emissions from transportation and warehousing, as well as disposing of the deteriorated items. It is assumed that transportation and emission reduction policies affect fuel consumption, which in turns affects costs and carbon emissions. The proposed model simultaneously optimizes the number of deliveries and the delivery size from a supplier to a third-party logistics service provider (3PL), and from the 3PL to the buyer in a three-echelon supply chain model considering deterioration and carbon emission. A numerical example and sensitivity analysis are presented to illustrate the proposed model. The result shows the benefit of supply chain integration in terms of total supply chain cost and carbon emission reduction.