Imperfect Quality Item Inventory Models Considering Carbon Emissions

Abstract

Research on inventory models with environmental consideration has recently become a popular research stream. The amount of energy consumption and greenhouse gas emissions is influenced by inventory decisions such as delivery quantity and delivery frequencies. This chapter focuses on a supply chain system which contains a percentage of imperfect quality items in its delivered lot; we also consider carbon emission costs under a carbon tax policy. Processing the defective items, which increases carbon emission, affects supply chain decisions. We present two economic order quantity models considering carbon emission and defective items with different shortage conditions. We then study low-carbon two-echelon supply chain inventory model considering supply chain integration and imperfect quality items. Numerical examples are provided to illustrate how these models can be applied in practice. Sensitivity analysis is performed to gain more insight on changing parameters in the numerical studies.