DOI: 10.14704/nq.2022.20.8.NQ22971

An Integrated Vendor – Buyer Inventory Model with Logistics and Environmental Consideration Based on a Strict Carbon Cap Policy

P.Selvi, W.Ritha

Abstract

Carbon emissions from the firm's various activities pose a significant threat to the environment. Companies are looking for ways to reduce carbon emissions as a result of carbon policies imposed by various government regulatory bodies. In this paper, a strict carbon cap policy is considered for inventory management in supply chains while taking logistics and green investment into account. The major sources of emissions that affect the environment are inventory holding, production, setup, emission from green technology, and transportation. The primary goal is to determine the optimal order quantity and number of shipments. The goal is to reduce the total cost of the supply chain while meeting the carbon emission constraint. Finally, a numerical example is provided to illustrate the proposed model.

Keywords

Supply chain, strict carbon cap, Integrated Vendor-Buyer inventory, carbon emission, Green technology.

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