A sustainable vendor-buyer inventory system considering transportation, loading and unloading activities. (20th October 2020)

• Record Type: Journal Article
• Authors: Wangsa, Ivan Darma; Tiwari, Sunil; Wee, Hui Ming; Reong, Samuel
• Is Part Of: Journal of cleaner production. Volume 271(2020)
• Publication Date: 2020-10-20
• Subjects: Integrated vendor-buyer inventory model -- Carbon emission -- Freight cost -- Stochastic lead-time -- Loading and unloading; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2020.122120
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: The increasing amount of worldwide carbon emissions has caused global warming, instigating governments to implement carbon policies such as the carbon cap-and-trade policy to achieve sustainable environmental development. This study aims to determine an optimal policy for the integrated system, which minimizes the total integrated cost while keeping ecological issues in mind. It discusses the carbon emissions (direct and indirect) generated by both parties (vendor and buyer) that involve freight forwarding activities. Loading and unloading activities involved in the process of both parties are considered. Lead-time is considered as a function of the production time, loading and unloading time, transportation time, and in-transit time. Logistics costs are a function of the weight of a product, distance traveled, fuel price, and fuel consumption. A proper solution algorithm was developed to find the optimal decision variables (order quantity, number of shipments, safety factor, lead-time, and total emission quantity), which minimize the total cost. A numerical example and sensitivity analysis are performed to reveal the efficiency of the proposed model by using Matlab12a. The findings of the study revealed that the parameters impact the decision variables significantly. In addition, managerial insights have also been drawn for decision-makers. Highlights: We develop an integrated inventory model considering environmental issues. The supply chain involves a vendor-buyer and freight forwarding company. We considered the logistics activities such as loading/unloading, and lead-time. A numerical example and sensitivity analysis illustrate the findings of the model.