International audienceCurrently companies are looking for solutions to reduce carbon emissions associated with their operations. Operational adjustments, such as modifications in batch sizes or order quantities, have proven to be an effective way to decrease emissions. In this paper, a novel model is proposed that takes into account the link between an inventory policy (EOQ), total carbon emissions, and both price and environmental dependent demand. In the case of an exogenous price, two optimal quantities are determined which maximize a retailer's profit and which minimize carbon emissions. Conditions that allow a company to maximize profit while minimizing emissions and mechanisms that allow a firm to maximize its profit and to decrease its carbon emissions are determined. In the case of an endogenous price, some empirical results are also discussed. When a firm optimizes its profit through both its selling price and its order quantity, some experiments match empirical observations. On the one hand, an environmental strategy is more significant for cheaper and green-labeled products. On the other hand, a public mechanism such as a carbon tax will decrease total and marginal emissions
Across many industries, e-commerce generates substantial modifications in supply chain structures. The aim of this article is to assess different forms of existing organizations when a store-based sales network coexists with a web site order network. Three main organizational models can be detected: "store-picking", "dedicated warehouse-picking" and "drop-shipping". We use a "newsboy" order policy model to compare the advantages of these different models and to note the impact of some parameters on inventory and flow management policies throughout the supply chain. Several effects are presented, particularly those linked to the size of the Internet market in relation to traditional market size and market demand hazards.
In times of crisis, companies need free cash flow to efficiently react against all uncertainty to ensure solvency. However, classical dynamic lot-sizing models only consider the physical flow of goods. In this paper, we introduce a first link between dynamic lot-sizing and the financial aspects of working capital requirements (WCR). We propose a new generic WCR model which allows us to evaluate the company's financial situation throughout the planning horizon. Moreover, a dynamic lot-sizing-based, discounted cash flow model is established for single-site, single-level, single-product and infinite capacity cases. It is shown that the zero-inventory ordering property holds for this case and thus a polynomial-time algorithm may be utilized. Numerical tests are presented in order to show the relevance of our approach compared with the traditional dynamic lot-sizing model.
International audiencePurpose – During a crisis situation, a poultry supply chain is faced with high variations on fresh chicken meat demand and has therefore to simultaneously manage excessive shelf-life stocks (in case of falling demand) and external purchases due to inventory shortages. In this case, the production plan is often established according to non-accurate sale forecasts which require ongoing adjustment.Design/methodology/approach – By using system dynamics, we developed a model of the French poultry supply chain during a given Avian Influenza crisis period. We compared exponential smoothing forecasting method to a word-of-mouth diffusion model which makes sense in a sanitary crisis context. Findings – An interesting result shows a complex relationship between the sanitary risk (which increases according to the slaughtered chicken’s volume and storage time) and the additional external purchases (in case of low production generated by an insufficient forecasting launched 40 days before customer orders).Research limitations/implications – Additional costs which vary over time are required for further assumptions testing.Practical implications – We propose to use a forecasting model which is not currently used by the professionals during a sanitary crisis period. This model is able to simulate an internal dissemination of a call for boycott of meat products (cf. negative word-of-mouth spread). Originality/value – Our problem is how to maintain a less risky but significant buffer size to respond to a supply chain coping with both changes in customers’ demand and instability in production capacity
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