A Joint Optimal Decision on Shipment Size and Carbon Reduction under Direct Shipment and Peddling Distribution Strategies

Min, Daiki; Chung, Kuang‐Ren

doi:10.3390/su9112061

Cited by 2 publications

(2 citation statements)

References 22 publications

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“…Thus, flexible production systems are always helpful in optimizing profit and making an economically sustainable production process [49]. Min and Chung [50] proposed a distribution model by optimizing shipment size. They considered the concept of carbon emissions reduction in their study.…”

Section: Green Level (Gl)-dependent Variable Production Rate (Vpr)mentioning

confidence: 99%

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Dey,

Seok,

Chung

2024

Mathematics

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Global emphasis on sustainable development is widespread, with industries playing a pivotal role in advancing global sustainability within the business and retail sectors. Consumer awareness of environmental concerns, such as pollution, prompts a focus on product biodegradability and eco-friendliness. Consequently, customers are drawn to products with higher green credentials. This study delves into the effectiveness of green attributes in retail industries, exploring the optimization of profit through a variable production rate and variable unit production cost, considering the selling price and the demand dependent on the product’s green level. In the long run, production systems may shift to an “out-of-control” state, resulting in the random production of imperfect items that must be remanufactured to maintain the industry’s positive brand image. To mitigate the impact of defective items, the industry opts to partially outsource a percentage of items, preventing shortages. However, this complex retailing system generates a significant amount of carbon emissions. This study introduces investments aimed at reducing carbon emissions to address this issue. In contrast with the existing literature, a green-level-dependent unit raw material cost is considered here for variable unit production cost. Ultimately, this study seeks to maximize the overall system’s profit by optimizing the selling price, order quantity, production rate, green level, and carbon emission reduction investments. The classical optimization technique is utilized to obtain analytic optimum results for the decision variables and total profit. Special cases and sensitivity analyses illustrate the real-world applicability and impact of green levels. Numerical findings indicate that considering the product’s green-level-dependent demand and unit production rate is 22.44% more beneficial than nongreen products, partial outsourcing provides a 1.28% advantage, and flexibility in the production rate yields a 69.60% benefit over traditional systems without green elements. Additionally, technological investments to reduce carbon emissions result in a notable reduction of up to 4.53%.

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Section: Green Level (Gl)-dependent Variable Production Rate (Vpr)mentioning

confidence: 99%

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Dey,

Seok,

Chung

2024

Mathematics

Self Cite

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“…Similar to the assumption in [26][27][28][29], we assume that the cost function, C(e L , e S ), for the effort levels, (e L , e S ), is quadratic as follows.…”

Section: Optimal Effort Levels In a Single Officementioning

confidence: 99%

Optimization of Capacity Allocation Models with Effort Dependent Demand in Global Supply Chain

Kim

Chung

2022

Sustainability

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In a demand driven market, optimal allocation of capacity to the demand has been one of the major issues. In this paper, we consider a single global freight firm allocating its capacity to its own regional sales offices. The firm sells cargo space based on two types of contracts: long-term and spot sales. Regional sales offices utilize their effort to generate more demand in their designated region. In other words, it is assumed that the demand is dependent on their efforts. First, we find a closed-form solution for the optimal level of the efforts of a single sales office in a specific region. Then, we study the case when the firm allocates its limited total capacity to two sales offices. We investigate different methods of capacity allocation: decentralization, centralization, and mixed, by conducting numerical studies. Different from the traditional finding, we suggest that the decentralization method is not always dominated by the centralization method.

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A Joint Optimal Decision on Shipment Size and Carbon Reduction under Direct Shipment and Peddling Distribution Strategies

Cited by 2 publications

References 22 publications

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Optimal Decisions on Greenness, Carbon Emission Reductions, and Flexibility for Imperfect Production with Partial Outsourcing

Optimization of Capacity Allocation Models with Effort Dependent Demand in Global Supply Chain

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