THREE-ECHELON SYNCHRONIZED SUPPLY CHAIN DETERMINISTIC INVENTORY MODELS WITH THE INCLUSION OF EMISSION COST

Abstract

Supply Chain Management plays a major role nowadays in the business world. In today’s globalized economy, the supply chain coordination becomes more fruitful inorder to minimize the total supply chain cost and thereby increasing the profit. A well integrated inventory management is a key to success of the supply chain system. If there is no proper coordination involved in the system then the overall gain cannot be achieved by the players of supply chain. Environmental problems are an area of steadily increasing concern due to globalization. Carbon emission is one of the notable problems harmful to society. This takes an important place while modelling the supply chain. Carbon emissions are mainly generated in the production process as well as during shipment of products. This paper proposes the study of three echelon closed loop supply chain for two models consisting of four players;a supplier,a manufacturer and a remanufacturer for a single retailer. Emission cost due to transportation is also considered. In the first model, batches of products are received simultaneously from the manufacturer and remanufacturer by the retailer whereas in the second, products are received alternatively. Numerical example is provided to illustrate the proposed two models.