Joint effects of variable carbon emission cost and multi-delay-in-payments under single-setup-multiple-delivery policy in a global sustainable supply chain

Biswajit Sarkar, Waqas Ahmed, Namhun Kim

Research output: Contribution to journalArticle

26 Citations (Scopus)

Abstract

In today's global market, supply chain players have to cooperate mutually for extra benefits, long lasting paybacks, and to control carbon emission for a clean environment. This study develops the three-echelon sustainable supply chain model in the context of multi-level trade credit and single-setup-multiple-delivery policy for mutual coordination in financial support and reducing carbon emissions. These joint effects will benefit the firms for interim financing as well as minimize carbon emission for a clean environment. This model quantifies the effects of the environmental regulations and trade credit period under the single-setup-multiple-delivery policy. The supplier produces semi-finished items and transports it to the manufacturer, the manufacturer transform these semi-finished items into final products. These finished products finally transported to multi-retailer. The shipments are permitted to proceed from the particular lot during production instead after completing the entire lot This strategy save the environment by minimizing carbon emission. Additionally, a multi-level trade credit policy is considered in this model for short-term investment. An algebraic approach is used to derive a closed form optimal result for the designed model. This non-derivative method provides the effective solution algorithm. The main contribution of this study is to minimize the sustainable supply chain cost of the system by jointly considering the multi-level delay-in-payment, variable carbon emission cost, and variable transportation cost under the single-setup-multi-delivery policy. The study presents an optimal solution for the individual scenario and also derived a comparison between them with a numerical example. The findings directed that implementation of multi-level trade credit under single setup-multiple-delivery improves the economic and environmental performance of three-echelon supply chain. Sensitivity analysis of the developed study is also illustrated to prove the real practice.

Original languageEnglish
Pages (from-to)421-445
Number of pages25
JournalJournal of Cleaner Production
Volume185
DOIs
Publication statusPublished - 2018 Jun 1

Fingerprint

carbon emission
Supply chains
Carbon
cost
Costs
Environmental regulations
Sensitivity analysis
sensitivity analysis
transform
effect
policy
Carbon emissions
Supply chain
Delay in payments
Economics
market
Trade credit
economics
credit
product

All Science Journal Classification (ASJC) codes

  • Renewable Energy, Sustainability and the Environment
  • Environmental Science(all)
  • Strategy and Management
  • Industrial and Manufacturing Engineering

Cite this

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abstract = "In today's global market, supply chain players have to cooperate mutually for extra benefits, long lasting paybacks, and to control carbon emission for a clean environment. This study develops the three-echelon sustainable supply chain model in the context of multi-level trade credit and single-setup-multiple-delivery policy for mutual coordination in financial support and reducing carbon emissions. These joint effects will benefit the firms for interim financing as well as minimize carbon emission for a clean environment. This model quantifies the effects of the environmental regulations and trade credit period under the single-setup-multiple-delivery policy. The supplier produces semi-finished items and transports it to the manufacturer, the manufacturer transform these semi-finished items into final products. These finished products finally transported to multi-retailer. The shipments are permitted to proceed from the particular lot during production instead after completing the entire lot This strategy save the environment by minimizing carbon emission. Additionally, a multi-level trade credit policy is considered in this model for short-term investment. An algebraic approach is used to derive a closed form optimal result for the designed model. This non-derivative method provides the effective solution algorithm. The main contribution of this study is to minimize the sustainable supply chain cost of the system by jointly considering the multi-level delay-in-payment, variable carbon emission cost, and variable transportation cost under the single-setup-multi-delivery policy. The study presents an optimal solution for the individual scenario and also derived a comparison between them with a numerical example. The findings directed that implementation of multi-level trade credit under single setup-multiple-delivery improves the economic and environmental performance of three-echelon supply chain. Sensitivity analysis of the developed study is also illustrated to prove the real practice.",
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