Abstract

ABSTRACT The present study addresses a green model of vendor managed inventory policy for perishable goods in a multi-period two-echelon supply chain network. Shortage is permissible and the unsatisfied demand is considered as back order. In addition, uncertainties in prices and manufacturing costs are considered as the main contribution of this study. Two objective functions are considered to optimize simultaneously. (a) Maximizing profits and (b) minimizing the amount of carbon emissions. This problem is formulated and the effects of uncertainty in key parameters are investigated using several decision trees. The result of the study shows the efficiency of the proposed procedure in dealing with uncertainties. Accordingly, increasing backorder costs lead to a decrease in order quantity and a decrease in profit value. However, this change reduces the emission of pollutants due to the reduced need for transport. In addition, profit levels increase and carbon emissions decrease as the product lifespan increases.

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.