Title: Cooperative inventory model for vendor-buyer system with unequal-sized shipment, defective items and carbon emission cost

Authors: Wakhid Ahmad Jauhari; Anjar Setyo Pamuji; Cucuk Nur Rosyidi

Addresses: Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia ' Production System Laboratory, Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia ' Department of Industrial Engineering, Sebelas Maret University, Jl. Ir Sutami 36 A, Surakarta 57126, Indonesia

Abstract: We develop an integrated inventory model for single-vendor single-buyer with deterministic demand. The vendor's production process may be deteriorated during production run and results to some defective items. The defective probability is assumed to be uniformly distributed. The shipment from vendor to buyer is made in unequal size over multiple shipments. We also incorporate the carbon emission cost and investigate the environmental impact on the model. The results of the study show that adopting unequal-sized shipment policy in the model which considering defective items will result in lower carbon emission cost and total cost compared to an equal-sized policy. Furthermore, the increase in defective probability will lead to the increase of carbon emission cost.

Keywords: defective items; integrated inventory modelling; unequal sized shipment; carbon emission costs; single-vendor single-buyer; deterministic demand; production process deterioration; defective probability; uniform distribution; multiple shipments; environmental impact; shipment costs; supply chain management; SCM; carbon emissions; CO2; carbon dioxide.

DOI: 10.1504/IJLSM.2014.064657

International Journal of Logistics Systems and Management, 2014 Vol.19 No.2, pp.163 - 186

Received: 07 May 2013
Accepted: 10 Jul 2013
Published online: 13 Sep 2014 *

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