An optimum balance among the reduction in ordering cost, product deterioration and carbon emissions: a sustainable green warehouse.

Abstract

This study involves an optimum balance between ordering cost reduction and product deterioration in controllable carbon emissions for a sustainable green warehouse. The sensitivity analysis is to simulate the impact of those attributes. Industries are foraging to find a proper balance between the use of fossil fuels and reducing carbon emissions, as burning fossil fuels is also indispensable for industrialization. Carbon can emit through inevitable logistic activities in the chains (e.g., lighting, heating, air-conditioning, product deterioration). An industry always attempts to curb those emissions through energy-efficient green technology. The green warehouse is a popular store system in present supply chains to limit the carbons. Product deterioration, particularly for perishable items, is also important for a practitioner to decide how to preserve a perishable product for maximum shelf-life. There is a common tendency among industries to increase order frequencies and volumes in search of a better preservation strategy, increasing the ordering cost and the probability of carbon emissions due to increased transportation. A realistic mathematical model is proposed based on those decision parameters by a sensitivity analysis to demonstrate the impacts. The results showed an increase of 46.30% profit is achieved when all three proposed reduction attributes, but shortages are considered. This improvement is significant without shortage, whereas the increased profit is 94.75%.