Journal
JOURNAL OF CLEANER PRODUCTION
Volume 185, Issue -, Pages 421-445Publisher
ELSEVIER SCI LTD
DOI: 10.1016/j.jclepro.2018.02.215
Keywords
Sustainable supply chain; Carbon emission; Multi-level trade credit; Single-setup-multi-delivery policy; Variable transportation
Categories
Funding
- 'Development of 3D Printing based Smart Manufacturing Core Technology' Research Fund of UNIST (Ulsan National institute of Science Technology) [1.180032.01]
- Ministry of Science & ICT (MSIT), Republic of Korea [2018미래선도형 특성화연구사업] Funding Source: Korea Institute of Science & Technology Information (KISTI), National Science & Technology Information Service (NTIS)
- National Research Foundation of Korea [2017R1D1A1B03033846, 31Z20130012945] Funding Source: Korea Institute of Science & Technology Information (KISTI), National Science & Technology Information Service (NTIS)
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In today's global market, supply chain players have to cooperate mutually for extra benefits, long lasting paybacks, and to control carbon emission for a clean environment. This study develops the three-echelon sustainable supply chain model in the context of multi-level trade credit and single-setup-multiple-delivery policy for mutual coordination in financial support and reducing carbon emissions. These joint effects will benefit the firms for interim financing as well as minimize carbon emission for a clean environment. This model quantifies the effects of the environmental regulations and trade credit period under the single-setup-multiple-delivery policy. The supplier produces semi-finished items and transports it to the manufacturer, the manufacturer transform these semi-finished items into final products. These finished products finally transported to multi-retailer. The shipments are permitted to proceed from the particular lot during production instead after completing the entire lot This strategy save the environment by minimizing carbon emission. Additionally, a multi-level trade credit policy is considered in this model for short-term investment. An algebraic approach is used to derive a closed form optimal result for the designed model. This non-derivative method provides the effective solution algorithm. The main contribution of this study is to minimize the sustainable supply chain cost of the system by jointly considering the multi-level delay-in-payment, variable carbon emission cost, and variable transportation cost under the single-setup-multi-delivery policy. The study presents an optimal solution for the individual scenario and also derived a comparison between them with a numerical example. The findings directed that implementation of multi-level trade credit under single setup-multiple-delivery improves the economic and environmental performance of three-echelon supply chain. Sensitivity analysis of the developed study is also illustrated to prove the real practice. (C) 2018 Elsevier Ltd. All rights reserved.
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