Loading...

New replenishment policy for deterioration items in green supply chain

Sazvar, Z ; Sharif University of Technology | 2012

576 Viewed
  1. Type of Document: Article
  2. Publisher: Institute of Industrial Engineers , 2012
  3. Abstract:
  4. Many developed models for deterioration items considered only costs related to inventories. Recently consumers and legislation have pushed companies to design their activities in order to reduce more and more the negative environmental impacts. Thus, it is important to examine the optimization of total supply chain costs and environmental impacts together. However, because of the recycling of the deteriorated items, the environmental impacts of supplying deterioration items are more significant than the non-deterioration products. The objective of this paper is developing a mathematical model and proposing a new replenishment policy in a centralized supply chain for deterioration items. In this model, we consider inventory and transportation cost, as well as the environmental impacts (waste and greenhouse gas (GHG) emission) under uncertain demand. Several transportation modes, producing various GHG level are considered. The best transportation modes and replenishment policy are determined by balancing between financial and environmental criteria. In this way, we develop a linear mathematical model and present a numerical example to discuss more details about proposed model. Afterwards, by doing the sensitivity analysis, some managerial insights are proposed and finally more promising directions are suggested for future research
  5. Keywords:
  6. Deterioration ; Exhibitions ; Greenhouse gases ; Mathematical models ; Supply chains ; Transportation ; Centralized supply chains ; Deterioration items ; Green supply chain ; Replenishment policy ; Supply chain costs ; Transportation cost ; Transportation mode ; Uncertain demand ; Environmental impact
  7. Source: 62nd IIE Annual Conference and Expo 2012, 19 May 2012 through 23 May 2012 ; May , 2012 , Pages 2516-2525