Incorporating carbon emissions in queuing models to determine lot sizes and inventory buffers in a supply chain

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In this paper, we present a supply chain model that considers both inventory-related costs and emissions. We used the queueing-based performance model wherein emissions in three stages of supply chain activities are captured. The model was solved by the decomposition approach. For model validation, we have used a discrete event simulation. The computation results show that the two results, i.e., the decomposition approach and the simulation, are very close, indicating the accuracy the approach that we used. Experiments were conducted to test the applicability of the model. The numerical examples show that the change in parameter values is not always responded the same way by the total inventory-related costs and the emission costs, indicating the importance of including these two response variables in the model.