Abstract
Supply chain management aims to integrate environmental thinking with efficient energy consumption into supply chain management. It includes a flexible manufacturing process, more product delivery to customers, optimum energy consumption, and reduced waste. The manufacturing process can be made more flexible through volume agility. In this scenario, production cannot be constant, and with the concept of volume agility, production is taken as a decision variable under the effect of optimum energy consumption. Considering a two-echelon supply chain, we consider a producer and supplier with two-level-trade-credit policies (TLTCP) with the optimum consumption. To reduce the integrated total inventory cost, we believe that demand is a function of the credit period and selling price. The cost function is analyzed, either with the credit period dependent demand rate or with the selling price dependent demand rate through the numerical examples under energy costs. Energy and carbon emission costs are introduced in setup/ordering cost, holding cost, and item cost for producer and supplier. The effect of inflation on the total cost cannot be ignored; this model is being developed for deteriorating items with the simultaneous impact of volume agility, energy, carbon emission cost, and two-level-trade-credit policies with inflation. This supply chain model was solved analytically and obtained the optimum decision variables in a quasi-closed form solution. An illustrative theorem is being utilized to analyze the optimum result for all the decision parameters. The convexity of the objective function is being obtained analytically as well as graphically. Finally, numerical examples and sensitivity analysis are employed to illustrate the present study and with managerial insights.
Highlights
The efficient use of energy can make a supply chain more efficient
inventory statusIs (Its) is challenging to reduce carbon emission and energy consumption in traditional production, but energy consumption can be reduced by controlling the production rate
Energy and carbon emission is inevitable in every manufacturing system
Summary
The efficient use of energy can make a supply chain more efficient. Supply chain management (SCM) is characterized by complementing the traditional economic (cost) focus on environmental (emissions) considerations only without the concept of carbon emission.This research gap for the effect of energy and carbon emission can be conducted in this study. The efficient use of energy can make a supply chain more efficient. Chain management (SCM) is characterized by complementing the traditional economic (cost) focus on environmental (emissions) considerations only without the concept of carbon emission. This research gap for the effect of energy and carbon emission can be conducted in this study. It is challenging to reduce carbon emission and energy consumption in traditional production, but energy consumption can be reduced by controlling the production rate. Due to a lack of coordination in the supply chain, the impact of deterioration from one stage to other increases. Effects of carbon emission in a global sustainable supply chain play an important role. Carbon emission and energy cost may happen in many different production stages while holding the produced stock, placing the order, and item cost
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