Track: Inventory Management
Abstract
In this study, we present an integrated single vendor-buyer inventory model considering deterioration and carbon emission simultaneously. We focus on the emissions from warehousing as well as transport activity and emission from the disposal of the deteriorated items. A numerical example is developed to illustrate the proposed solution procedure. Computational results indicate that incorporating carbon emission into the integrated inventory model will reduce the total carbon emissions and slightly reduce the total supply chain cost. Computational results also prove that the integrated inventory model has significantly reduced the total cost and total carbon emissions as compared to the result when the decision is made solely from the buyer’s perspective.