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 journalArticlepeer-review

48 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

Bibliographical note

Funding Information:
This work was supported by the 'Development of 3D Printing-based Smart Manufacturing Core Technology' Research Fund ( 1.180032.01 ) of UNIST (Ulsan National Institute of Science & Technology).

All Science Journal Classification (ASJC) codes

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

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