Sustainable dynamic lot sizing models for cold products under carbon cap policy

As’ad, Rami; Hariga, Moncer; Shamayleh, Abdulrahim

doi:10.1016/j.cie.2020.106800

Cited by 18 publications

(13 citation statements)

References 67 publications

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“…Broadly speaking, this body of literature suggests that substantial reduction in carbon emissions can be attained via better coordinated lot sizing and shipping decisions among SC members. However, the majority of these models address single stage and single product settings [22]. A pioneering work in this area is that of Chen et al [63] who adopted the four carbon policies (carbon tax, carbon cap, carbon offset, and cap-and-trade) in the context of the infamous single stage Economic Order Quantity (EOQ) model.…”

Section: Relevant Literaturementioning

confidence: 99%

“…On the other hand, the quantity, rather than price, based carbon cap policy imposes a limit on the maximum footprint generated over a certain period of time which is exogenously imposed by the legislative authorities. Several studies have adopted the carbon cap policy where they established the necessary operational adjustments that need to be carried out in adherence to various levels of the preset cap (see for instance Absi et al [20,21] and As'ad et al [22]). A detailed discussion of these policies seeking to curb carbon emissions can be found in the works of Hariga et al [23] and Mohammed et al [24].…”

Section: Introductionmentioning

confidence: 99%

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Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

2022

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In essence, the extent of collaboration among supply chain (SC) members, via practical mechanisms such as Vendor Managed Inventory (VMI), shall look beyond economic gains to strive for curbing the environmental impact of their logistics activities. This aligns well with the recently imposed sustainability related targets set by many legislative authorities. In this paper, we address a realistic SC problem wherein a single vendor serves multiple retailers under a VMI partnership. In order to deter the vendor from shipping larger batches downstream, the contractual agreement stipulates an upper limit on the inventory level held at each retailer's location where the vendor is penalized upon exceeding this level. In this context, economic and environmental as well as combined models are developed, with the latter employing carbon cap and carbon tax policies. Upon exploiting the structure of the developed models, computationally-efficient exact solution algorithms are devised. The conducted numerical analysis suggest that minor operational adjustments could lead to substantial carbon footprint reduction at the expense of a slight increase in the operational cost. Based on a novel use of the Lagrange multiplier, this work provides decision makers with a useful tool that aids with the selection of the most-suited carbon policy to embrace.INDEX TERMS Sustainable supply chain, vendor managed inventory, carbon policies, exact solution procedures, single vendor, multiple retailers

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Section: Relevant Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

2022

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“…Carbon tax systems are widely used to include the cost of carbon emissions in the objective function [26][27][28][29][30][31]. Other carbon regulations such as carbon cap-and-trade and strict carbon limits are also used, depending on the regulations imposed by the government [32,33]. Datta [34] developed an inventory model with investment in emission reduction technology focusing on emissions from production activities.…”

Section: Literature Reviewmentioning

confidence: 99%

The Role of the Discount Policy of Prepayment on Environmentally Friendly Inventory Management

et al. 2022

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Nowadays, more and more consumers consider environmentally friendly products in their purchasing decisions. Companies need to adapt to these changes while paying attention to standard business systems such as payment terms. The purpose of this study is to optimize the entire profit function of a retailer and to find the optimal selling price and replenishment cycle when the demand rate depends on the price and carbon emission reduction level. This study investigates an economic order quantity model that has a demand function with a positive impact of carbon emission reduction besides the selling price. In this model, the supplier requests payment in advance on the purchased cost while offering a discount according to the payment in the advanced decision. Three different types of payment-in-advance cases are applied: (1) payment in advance with equal numbers of instalments, (2) payment in advance with a single instalment, and (3) the absence of payment in advance. Numerical examples and sensitivity analysis illustrate the proposed model. Here, the total profit increases for all three cases with higher values of carbon emission reduction level. Further, the study finds that the profit becomes maximum for case 2, whereas the selling price and cycle length become minimum. This study considers the sustainable inventory model with payment-in-advance settings when the demand rate depends on the price and carbon emission reduction level. From the literature review, no researcher has undergone this kind of study in the authors’ knowledge.

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Section: Literature Reviewmentioning

confidence: 99%

“…Saif and Elhedhli (2016) modelled the cold SC design problem by considering capacity, transportation, inventory costs and global warming impact. As'ad et al (2020) determined the optimal lot size by comparing the operational cost and carbon footprint performance under alternative carbon cap policies. Liljestrand et al (2015) proposed a decision support tool with the aim of carbon footprint reduction, which incorporates the logistics network's complexity by analysing the patterns in the shipment statistics.…”

Section: Blockchain For Operational Excellencementioning

confidence: 99%

Using blockchain technology to drive operational excellence in perishable food supply chains during outbreaks

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Uşar

Aylak

2021

IJLM

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PurposeThis paper aims to explore the potential of blockchain technology (BT) to support the operational excellence in perishable food supply chain (PFSC) during outbreaks, by doing use-case analysis.Design/methodology/approachA systematic literature review is performed to determine the dimensions of operational excellence in the food supply chain (FSC), then a single use-case analysis is conducted to explore the potential of blockchain in order to achieve operational excellence for PFSC during the pandemics by applying context, interventions, mechanism and outcomes (CIMO) logic.FindingsThe findings of this study reveal that blockchain capabilities such as immutability and transparency, visibility, traceability, integration and interoperability, disintermediation and decentralisation, smart contracts and consensus mechanism provide better sustainable operational excellence outcomes for PFSCs to be more responsive, flexible, efficient and collaborative to cope with the impacts of COVID-19.Research limitations/implicationsThis research employs only one real case with multiple PFSC participants. Statistical generalisation is not possible at this stage of the research. However, the findings are not restricted to this single use-case.Practical implicationsThis study provides a research direction to explore the potential of BT to achieve operational excellence in the PFSC during outbreaks and generates prescriptive knowledge for better managerial decision-making across the PFSC during outbreaks.Originality/valueThis research conducts semi-structured interviews with different participants in one blockchain ecosystem to understand multiple participants' perspectives of operational excellence within PFSC.

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Sustainable dynamic lot sizing models for cold products under carbon cap policy

Cited by 18 publications

References 67 publications

Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

Vendor Managed Inventory Coordination Under Contractual Storage Agreement and Carbon Regulation Policies

The Role of the Discount Policy of Prepayment on Environmentally Friendly Inventory Management

Using blockchain technology to drive operational excellence in perishable food supply chains during outbreaks

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