Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Single Manufacturer and Multiple Retailers Multi-Product Inventory Model under Cap-and-Trade Mechanism

배출권거래제 하에서 단일 제조업자-다소매업자의 공급사슬에서 다품목의 재고모형

  • Kim, Dae-Hong (Department of Industrial & Management Engineering, Hansung University)
  • 김대홍 (한성대학교 산업경영공학과)
  • Received : 2019.02.04
  • Accepted : 2019.03.26
  • Published : 2019.03.31
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Abstract

In pursuing carbon emission reduction efforts, companies have focused for the most part on reducing emissions due to the more efficient equipment and facilities. However they overlook a significant source of carbon emissions, one that is driven by operational policies. Currently companies are looking for solutions to reduce carbon emissions associated with their operations. Operational adjustments, such as modifications in order quantities could an effective way in reducing carbon emissions in the supply chain. Also, Cap-and-Trade mechanism is generally accepted as on of the most effective market-based mechanism to reduce carbon emissions. In this paper, we investigate a supply chain with single manufacturer and multiple retailers multi-product inventory model under the cap-and-trade system incorporating the carbon emissions caused by transportation and warehousing activities. Also, we provide an iterative solution algorithm and derive the common order interval and the number of intervals for each product. We show by numerical example that the inventory model incorporating cap & trade mechanism can reduce total cost and carbon emissions compared to the classical inventory model. Using the numerical examples, we also investigates different carbon price on the performance of the inventory model.

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References

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