Abstract
In response to the digital revolution, nowadays, many companies operate online and offline businesses in parallel to ensure their future competitiveness. This research examines the inventory strategy for multi-product vendor-buyer supply chain systems, considering space constraints and carbon emissions, in order to improve competence in managing online and offline integrated orders. We amalgamate costs and emissions in transport and storage. Here, we divide the warehouse of the buyer into two stages: one for satisfying online orders and the other for satisfying offline orders. We also assume that additional crashing costs reduce the lead times for receiving products in the buyer’s warehouse. This study demonstrates a mathematical model in the form of a constrained non-linear programme (NLP) and derives a Lagrangian multiplier method to solve it. An iterative solution procedure is designed in order to attain sustainable manufacturing decisions, which are illustrated numerically.
Highlights
The modest business environment may amplify the need for industrial storage in order to grasp a higher assortment of products and serve a broader topographical zone of consumers
Stage 1 is for sending small-size online customer orders, while Stage 2 is for fulfilling offline large-size orders
This study is applicable when only one parameter has changed at a time, and other parameters have been kept at their original values
Summary
The modest business environment may amplify the need for industrial storage in order to grasp a higher assortment of products and serve a broader topographical zone of consumers. Priyan & Uthayakumar [12] presented a two-echelon SC model for multi-items, including recovery options with trade credit and variable lead times considering multi-constraints. Hammami et al [29] designed two multi‐stage SC models lead-time limitations in carbon emission tax and cap cap regulation. Tang et al [31] developed the reduction of emissions in the transport industry management found in the (R, Q) inventory policy. Among the challenges in running the dual-channel warehouse are how to organize the warehouse to control carbon emissions, and how to manage inventory to fulfill both online and offline (retailer) orders, where the orders from different channels have different features. Numerous studies address the multi-echelon SC, only a few have applied an inventory model in a multi-channel multi-echelon SC considering multiple products.
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