Integrated Inventory Model for Multi Item under Price - Sensitive Demand with Controllable Lead Time and Greenhouse Gas Emission Effect on Production andTransportation
DOI:
https://doi.org/10.54536/ajise.v5i2.7091Keywords:
Greenhouse Gas Effect, Integrated Inventory Model, Lead Time, Multi Items, Price Sensitive DemandAbstract
In today’s era of rapid human advancement, environmental concerns have become just as important as economic and industrial growth. This study examines how greenhouse gas (GHG) emissions affect production and transportation in a supply chain model in which a single vendor supplies multiple items to several buyers. The buyers’ demand is normally distributed, and delivery lead times can be shortened by incurring crash costs. Importantly, the model also incorporates transportation and GHG-related costs during both production and delivery stages. Additionally, the model considers price-sensitive demand, recognizing that fluctuations in price can influence buyer behavior and overall demand levels. The main goal is to minimize the overall expected cost while determining key decision variables, such as each buyer’s lead time, the vendor’s order quantities, and shipment frequency. A numerical example is used to illustrate the model, and a sensitivity analysis explores how changes in key parameters affect the optimal supply chain decisions.
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