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Effects of preservation technology investment on waste generation in a two-echelon supply chain model

Title
Effects of preservation technology investment on waste generation in a two-echelon supply chain model
Author
Sarkar, Biswajit
Keywords
preservation technology investment; refrigerated trucks; waste reduction; controllable probabilistic deterioration rate; supply chain management
Issue Date
2019-02
Publisher
MDPI AG
Citation
Mathematics, v. 7, No. 2, Article no. 189
Abstract
This study develops an integrated production-inventory model for a two-echelon supply chain network with controllable probabilistic deterioration. The investment in preservation technology is considered a decision variable to control the deteriorated quantity of an integrated system. The objective of the study is to optimize preservation investment, the number of shipments and shipment quantity, so that the total cost per unit of time of the supply chain is minimized. The study proposes a solution method, and the results show that investment in preservation technology reduces the total supply chain cost by 13%. Additionally, preservation increases the lot size, thus increasing the production cycle length, which reduces the ordering cost of the system. Furthermore, this study shows that preservation leads to a reduction of solid waste from deteriorated products. Total deteriorated products reduced to 8 units from 235 units, hence, preservation generates positive environmental benefits along with economic impacts. The robustness of the proposed model is illustrated with a numerical example, sensitivity analysis, and graphical representations. Moreover, comparative study and managerial insights are given to extract significant insights from the model.
URI
https://www.mdpi.com/2227-7390/7/2/189https://repository.hanyang.ac.kr/handle/20.500.11754/112354
ISSN
2227-7390
DOI
10.3390/math7020189
Appears in Collections:
COLLEGE OF ENGINEERING SCIENCES[E](공학대학) > INDUSTRIAL AND MANAGEMENT ENGINEERING(산업경영공학과) > Articles
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