A pull system inventory model with carbon tax policies and imperfect quality items

Lin, Tien-Yu; Sarker, Bhaba R.

doi:10.1016/j.apm.2017.06.001

Cited by 40 publications

(14 citation statements)

References 25 publications

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“…Battini et al [21] introduced a sustainable EOQ inventory model integrating factors that have a great impact on the environment. Lin and Sarker [22] presented an inventory model that considers carbon tax policy and imperfect-quality items avoiding shortages and incorporated and evaluated some carbon tax systems. Tiwari et al [23] investigated an integrated vendorbuyer inventory model for deteriorating goods with imperfect quality, taking into account that all processes in the supply chain cause carbon emissions.…”

Section: Introductionmentioning

confidence: 99%

An Inventory Model for Growing Items with Imperfect Quality When the Demand Is Price Sensitive under Carbon Emissions and Shortages

De-la-Cruz-Márquez

Cárdenas–Barrón

Mandal

2021

Mathematical Problems in Engineering

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Nowadays, it is well known that global warming is a great hazard to the planet, and the carbon emissions are a principal source of global warming. For this reason, the customers have become more environment and quality conscious than before, and as a result, they request the firms to be ecofriendly. In this context, it is desirable that companies develop and implement inventory models which consider sustainability issues. Furthermore, the companies face problems of shortages and setting prices in order to persist in a competitive and challenging business. Besides, there exists a kind of items different than the traditional products that it is necessary to feed them until a target weight is reached in order to slaughter and sell to customers. These are named as growing items. In this sense, this research work proposes an inventory model for growing items with imperfect quality when the demand is price sensitive under carbon emissions and shortages. The shortages are fully backordered. The demand is price sensitive according to a polynomial function. The proposed inventory model determines jointly the optimal policy for the selling price of perfect-quality growing items, the order quantity, and the backordering quantity which maximize the expected total profit per unit of time. Some numerical examples are resolved in order to illustrate the use and the applicability of the inventory model. Finally, a sensitivity analysis is conducted and some managerial insights are given.

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Section: Introductionmentioning

confidence: 99%

An Inventory Model for Growing Items with Imperfect Quality When the Demand Is Price Sensitive under Carbon Emissions and Shortages

De-la-Cruz-Márquez

Cárdenas–Barrón

Mandal

2021

Mathematical Problems in Engineering

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“…Lin [33] analyzed distinct carbon tax policies on the performance of an inventory model with imperfect quality products in which the purchaser employs power over its vendor. Recently, Rad et al [34] derived the optimal production and distribution strategies for imperfect products when the demand is dependent on both selling price and advertising.…”

Section: Introductionmentioning

confidence: 99%

An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price

et al. 2021

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Traditionally, the inventory models available in the literature assume that all articles in the purchased lot are perfect and the demand is constant. However, there are many causes that provoke the presence of defective goods and the demand is dependent on some factors. In this direction, this paper develops an economic order quantity (EOQ) inventory model for imperfect and perfect quality items, taking into account that the imperfect ones are sent as a single lot to a repair shop for reworking. After reparation, the items return to the inventory system and are inspected again. Depending on the moment at which the reworked lot arrives to the inventory system, two scenarios can occur: Case 1: The reworked lot enters when there still exists inventory; and Case 2: The reworked lot comes into when the inventory level is zero. Furthermore, it is considered that the holding costs of perfect and imperfect items are distinct. The demand of the products is nonlinear and dependent on price, which follows a polynomial function. The main goal is to optimize jointly the lot size and the selling price such that the expected total profit per unit of time is maximized. Some theoretic results are derived and algorithms are developed for determining the optimal solution for each modeled case. It is worth mentioning that the proposed inventory model is a general model due to the fact that this contains some published inventory models as particular cases. With the aim to illustrate the use of the proposed inventory model, some numerical examples are solved.

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“…Moncer and Rami [5] presented a carbon footprint minimization model, an operational cost minimization model, and a hybrid economic and environmental minimization model to determine the optimal lot sizing and allocation quantities. Tien and Bhaba [6] designed a pull system inventory with imperfect-quality items; their study investigates various tax systems and numerical cases illustrate that the different carbon tax policies lead to different inventory strategies, and the lot size and order frequency depend on the discount policies and the carbon tax systems. Zhang and He [7] proposed a multi-modal logistics model with time window to minimize total cost and carbon emissions cost by determining the optimal transportation mode and investment selections.…”

Section: Introductionmentioning

confidence: 99%

Bi-objective inventory allocation planning problem with supplier selection and carbon trading under uncertainty

Kang

et al. 2018

PLoS ONE

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Concern is growing that business enterprises focus primarily on their economic activities while disregarding the adverse environmental and social effects of these activities. To contribute to the literature on this matter, this study investigates a novel bi-objective inventory allocation planning problem with supplier selection and carbon trading across multiple periods under uncertainty. The concepts of a carbon credit price and a carbon cap are proposed to demonstrate the effect of carbon emissions costs on inventory allocation network costs. Demands of manufacturers, transport price, and defect rate of materials that should be rejected are set as random variables. We combine normalized normal constraint method, differential evolution algorithm, and uncertainty simulation to deal with the complex model. One representative case shows the effectiveness and practicability of this model and proposed method. The Pareto frontier is generated by solving the bi-objective model. We extend the results of numerical examples in large scale problems, and compare the solution method results with exact solutions. The environmental objective across the inventory allocation network varies with changes of the carbon cap and the carbon credit price.

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A pull system inventory model with carbon tax policies and imperfect quality items

Cited by 40 publications

References 25 publications

An Inventory Model for Growing Items with Imperfect Quality When the Demand Is Price Sensitive under Carbon Emissions and Shortages

An Inventory Model for Growing Items with Imperfect Quality When the Demand Is Price Sensitive under Carbon Emissions and Shortages

An Inventory Model for Imperfect Quality Products with Rework, Distinct Holding Costs, and Nonlinear Demand Dependent on Price

Bi-objective inventory allocation planning problem with supplier selection and carbon trading under uncertainty

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