Effect of Unequal Lot Sizes, Variable Setup Cost, and Carbon Emission Cost in a Supply Chain Model

Abstract

Due to heavy transportation for single-setup multidelivery (SSMD) policy in supply chain management, this model assumes carbon emission cost to obtain a realistic behavior for world environment. The transportation for buyer and vendor is considered along with setup cost reduction by using an investment function. It is assumed that the shipment lot size of each delivery is unequal and variable. The buyer inspects all received products and returns defective items to vendor for reworking process. Because of this policy, end customers will only obtain nondefective items. The analytical optimization is considered to obtain the optimum solution of the model. The main goal of this paper is to reduce the total cost by considering carbon emission during the transportation. A numerical example, graphical representation, and sensitivity analysis are given to illustrate the model.

Optimal Production and Ordering Strategies with Defective Items and Allowable Shortage under Two-part Trade Credit

“…That is, when the order quantity of retailer Q is greater than or equal to a certain threshold, Q d , then the transportation cost is absorbed by the supplier; otherwise, it is paid by the retailer. On the other hand, to facilitate the transaction and receive payment as soon as possible, the supplier provides the retailer with a two-part trade credit, which allows the retailer to make payments at time M 2 and, then, provides the retailer with a cash discount and a discount rate (0 < < 1 [63], and Sarkar et al [71], the production-inventory system considers a single supplier, a single retailer, and single commodity; 2. Shortages are allowed for the retailer and all customers are willing to wait for the next delivery (see, for example [31,46]); 3.…”

Sustainability Analysis of Supply Chains with Fashion Products under Alternative Power Structures and Loss-Averse Supplier

“…For example, Reference [14] formulate the government's cap-and-trade regulation, and discuss how to improve environmental sustainability under this regulation via sustainability investment. Reference [1] analyze the effects of the cost of carbon emission, unequal lot sizes, and setup cost on the supply chain's decisions. Reference [2] further investigate how to reduce the setup cost in an integrated supply chain with carbon emission.…”

“…To further analyze the relation between q SA and b s , we focus on a special case in which ε is uniformly distributed in [0, 1], and then we have the following proposition.…”

“…This induces many industries to control carbon emission [1][2][3]. Among all industries, the fashion and apparel industry raises most concerns due to lots of related issues: the overuse of energy and water, the toxic dye, the waste of raw materials, etc.…”

“…This helps them "reduce the side effects to the environment and project a positive brand image" [5]. Admittedly, sustainable fashion induces the fashion companies to concern more about sustainability-oriented objectives, however, they are also aware of that intracompany effort is limited [1,2,6] and insufficient and attempting to exert more intercompany effort in the supply chain level. In a recent survey conducted by the United States Fashion Industry Association, 33% respondents rate "unmet social and environmental compliance" as having a high impact on their supply chains, which is much higher than concerns for other supply chain risks (United States Fashion Industry Association [7].…”