Managing carbon footprints in inventory management
TL;DR: In this paper, the optimal order quantity was derived and the impacts of carbon trade, carbon price, and carbon cap on order decisions, carbon emissions, and total cost in inventory management.
About: This article is published in International Journal of Production Economics.The article was published on 2011-08-01. It has received 609 citations till now. The article focuses on the topics: Carbon price & Carbon emission trading.
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TL;DR: Analytical support is provided for the notion that it may be possible, via operational adjustments alone, to significantly reduce emissions without significantly increasing cost.
391 citations
Cites methods from "Managing carbon footprints in inven..."
...[6] consider a model similar to the cap-and-price model...
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TL;DR: In this article, the authors study the production and emission abatement decisions of a make-to-order supply chain consisting of a manufacturer and a retailer under cap-and-trade regulation.
351 citations
TL;DR: In this paper, the authors analyzed a detailed model which incorporates both cap-and-trade regulation and consumers' low-carbon preference and concluded that the joint emission reduction strategy is more profitable for both the manufacturer and the retailer.
315 citations
TL;DR: This paper investigates the impact of emissions taxes on the optimal production and pricing decisions of a manufacturer who could remanufacture its own product using a leader-follower Stackelberg game model, and delineates how emissions taxes can be instituted to realize the inherent economic, environmental and social benefits of remanufacturing.
299 citations
TL;DR: In this article, the authors reformulate the classical economic order quantity model as a multiobjective problem and propose a multi-echelon extension of the SOP model, where the set of efficient solutions (Pareto optimal solutions) is analyzed.
282 citations
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TL;DR: It is shown that firms could effectively reduce their carbon emissions without significantly increasing their costs by making only operational adjustments and by collaborating with other members of their supply chain.
Abstract: Using relatively simple and widely used models, we illustrate how carbon emission concerns could be integrated into operational decision-making with regard to procurement, production, and inventory management. We show how, by associating carbon emission parameters with various decision variables, traditional models can be modified to support decision-making that accounts for both cost and carbon footprint. We examine how the values of these parameters as well as the parameters of regulatory emission control policies affect cost and emissions. We use the models to study the extent to which carbon reduction requirements can be addressed by operational adjustments, as an alternative (or a supplement) to costly investments in carbon-reducing technologies. We also use the models to investigate the impact of collaboration among firms within the same supply chain on their costs and carbon emissions and study the incentives firms might have in seeking such cooperation. We provide a series of insights that highlight the impact of operational decisions on carbon emissions and the importance of operational models in evaluating the impact of different regulatory policies and in assessing the benefits of investments in more carbon efficient technologies. Note to Practitioners-Firms worldwide, responding to the threat of government legislation or to concerns raised by their own consumers or shareholders, are undertaking initiatives to reduce their carbon footprint. It is the conventional thinking that such initiatives will require either capital investments or a switch to more expensive sources of energy or input material. In this paper, we show that firms could effectively reduce their carbon emissions without significantly increasing their costs by making only operational adjustments and by collaborating with other members of their supply chain. We describe optimization models that can be used by firms to support operational decision making and supply chain collaboration, while taking into account carbon emissions. We analyze the effect of different emission regulations, including strict emission caps, taxes on emissions, cap-and-offset, and cap-and-trade, on supply chain management decisions. In particular, we show that the presence of emission regulation can significantly increase the value of supply chain collaboration.
1,007 citations
TL;DR: A mixed-integer linear programming based framework for sustainable supply chain design that considers life cycle assessment (LCA) principles in addition to the traditional material balance constraints at each node in the supply chain is introduced in this paper.
743 citations
TL;DR: In this paper, an analytical model using the long-range Lagrangian and the Eulerian transport methods is used to approximate the three-dimensional infinite footprint model, which shows that carbon emissions across stages in a supply chain can constitute a significant threat that warrants careful attention in the design phase of supply chains.
463 citations
TL;DR: In this paper, the authors identify a range of inventory problems that are not covered appropriately by traditional inventory analysis and examine the importance of inventory planning to the environment in greater detail, in particular, the location of the manufacturing plants and the effect that inventory planning has on the logistics chain.
290 citations
TL;DR: In this paper, the authors explore the environmental impact of pooling of supply chains at the strategic level (merging supply chains) and compute CO2 emissions for two transport modes, road and rail.
289 citations