Abstract
This article develops a sustainable electricity supply chain mathematical model that assumes linear price-dependent customer demands where the price is a decision variable under setup cost and carbon emission. The sustainable electrical supply chain system contained: (a) power generation; (b) transmission substations; (c) distribution substations; and (d) customer. The production rates depend on the demand rate, and demand for electricity by the customers is dependent on the price of electricity where the electrical energy was generated and transmitted through multiple substations to customers. Moreover, we considered that the capacities of transmission rates, power generation, and distances in between two stations are associated with the distribution costs and transmission cost. Here, we used the theory of inventory to develop a new model and suggested a procedure to deduce an optimal solution for this model. Finally, a numerical example and sensitivity analysis are employed to illustrate the present study and with managerial insights.
Highlights
In an electrical supply chain inventory system, electricity generated in a power generation plant will be transmitted through a transmission line and distribution substation to the customers whose demand is influenced by the price of electricity in order to maximize the profit
In the literature review section (Section 1.3) it can be clearly seen that some works seek to determine sustainable electrical supply chain inventory models and no research tries to determine a sustainable electrical supply chain inventory model with setup cost reduction and CO2 emissions. Our research questions this model: (1) what is the electrical power distribution factor’s effect on the distribution substation, and the electrical power transmission factor’s impact on the transmission substation and electrical power generation factor; (2) how much is the ordering quantity?; (3) what is customer’s average electricity consumption time?; and (3) what is the retailer’s selling price? To answer these questions in this study, we developed and solved a sustainable electricity supply chain inventory model with setup cost reduction and CO2 emissions while considering environmental parameters
The aim of this study is to examine the effect of price-dependent demand on the sustainable electrical supply chain inventory system under setup cost reduction and carbon emissions
Summary
A supply chain inventory model defines the retailer-customer relationship. Setup cost plays a crucial role in today’s supply chain inventory management system for shipment of items on time. The setup procedure is not evaluated as a fixed/known constraint, but needs to be considered at a time of minimizing waste, satisfying deadlines, productivity, and elaborating resource utilization. To minimize the total cost investment, the manufacturer needs to reduce setup costs. In a supply chain inventory system, the capacity of electrical energy has the same process for determining the order quantity and total profit. In an electrical supply chain inventory system, electricity generated in a power generation plant will be transmitted through a transmission line and distribution substation to the customers whose demand is influenced by the price of electricity in order to maximize the profit
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