Vendor-managed inventory (VMI) deteriorating item model taking into account carbon emissions

Abstract

This paper investigates the main activities that lead to carbon emissions in a deteriorating items supply chain. This study applies a vendor-managed inventory (VMI) model for deteriorating items with a single-setup-single-delivery (SSSD) policy and a single-setup-multiple-delivery (SSMD) policy. We provide constructive managerial insights to both researchers and industries in their inventory management decisions in minimizing the total deteriorating items cost and the total carbon emissions. A numerical example is developed to optimize the delivery quantity and the number of deliveries per production cycle. The results enable companies to identify an effective inventory management critical to reducing carbon emissions, especially for deteriorating items.