A sustainable inventory model with controllable carbon emissions in green-warehouse farms

Abu Hashan Md Mashud, Magfura Pervin, Umakanta Mishra, Yosef Daryanto, Ming-Lang Tseng , Ming Lim

Research output: Contribution to journalArticlepeer-review

Abstract

Global warming has become a sensitive issue, and many countries are trying to control CO2 emissions by investing in many projects and promoting green industrial practices. This study proposes a sustainable price-reliant demand inventory model with controllable carbon emissions to reduce the CO2 emissions from farm warehousing activity. This study extends previous research that has proposed a sustainable inventory system with greenhouse facilities by controlling carbon emissions through green investment. This study involves an investment in energy-efficient green technology in a two-warehouse inventory system to curb carbon emissions during the transportation of products from the owned to the rented warehouse and also to the final customers. Two warehouses are frequently used in practice to avoid stock-out situations and make the business more profitable. Case 1 represents the model with allowable shortages, and Case 2 represents the model without shortages. Pricing strategies and a hybrid payment scheme are applied throughout this study to make the business more profitable as well as to entice new customers. The retailer has to prepay some portion of the purchasing cost, with the payment scheme requiring multiple installments. Non-instantaneous deterioration is considered in this study to show the lifetime of product freshness in the presence of a constant backorder. A nonlinear model is proposed, and a solution algorithm is suggested. A real case study is introduced, which provides an illustration of the proposed model. The examples are solved and are followed by a sensitivity analysis that reveals the validity of the model, and conclusions are presented.
Original languageEnglish
Article number126777
JournalJournal of Cleaner Production
Volume298
Early online date22 Mar 2021
DOIs
Publication statusE-pub ahead of print - 22 Mar 2021

Bibliographical note

NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Cleaner Production. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Cleaner Production, 298, (2021) DOI:10.1016/j.jclepro.2021.126777

© 2021, Elsevier. Licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

  • Carbon emission reduction
  • Two-green-warehouse farms
  • Deterioration
  • Price-reliant demand
  • Multiple prepayments

ASJC Scopus subject areas

  • Environmental Science(all)
  • Industrial and Manufacturing Engineering
  • Renewable Energy, Sustainability and the Environment
  • Strategy and Management

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