Integrated production transportation and storage policies with carbon costs
Author(s)
Advisor
Date
2018-07Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
132
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Abstract
Governments adopt carbon policies such as taxation in order achieve carbon reduction
targets set by global agreements. In this study, we analyze a two-echelon
supply chain model where production and dispatching decisions are made in an
integrated way. We allow the use of multi-modes of transportation under carbon
taxation. We consider a system with a single retailer and a manufacturer and assume
that demand is deterministic and constant. We rst assume that lead time
is negligible, which is then extended to a case where lead time is a stochastic
random variable. For transportation, we focus on a system where both in-house
and outsource transportation options are available. Our objective is to minimize
average total cost which is composed of operational costs and carbon tax by
determining optimal production interval, number of dispatches, backorder level
and number of vehicles to be used. We provide structural results and solution
algorithms to select the optimal policy. We also present di erent integration scenarios
to discuss the bene ts of integrated supply chains. The proposed methods
are applied in a numerical study and the results are explained in detail. Finally,
we discuss bene ts of integrating system and introducing carbon tax and show
that signi cant carbon reductions can be achieved with manageable increase in
cost. It is also concluded that although integration and allowing outsource option
provides a decrease in total cost of the system, it can yield to a solution with
greater carbon emissions.