EOQ revisited with sustainability considerations

• Autorzy: Arslan M C , Turkay M
• Języki publikacji: EN

Abstrakty

EN

The economic order quantity (EOQ) model is a pure economic model in classical inventory control theory. The model is designed to find the order quantity so as to minimize total cost under a deterministic setting. In this study, we revise the standard EOQ model to incorporate sustainability considerations that include environmental and social criteria in addition to the conventional economic considerations. We propose models for a number of different policies and analyze these revised models. Based on our analysis, we show how the triple bottom line considerations of sustainability be appended to traditional cost accounting in EOQ model. We also provide a number of useful insights for decision and policy making practices.

Słowa kluczowe

EN

supply chain management; economic order quantity model; inventory control; sustainability; operations management

• Wydawca: Wydawnictwo Politechniki Poznańskiej
• Czasopismo: Foundations of Computing and Decision Sciences
• Rocznik: 2013
• Tom: Vol. 38, No. 4
• Strony: 223--249
• Opis fizyczny: Bibliogr. 47 poz.

Twórcy

autor

Arslan M C

• Department of Industrial Engineering, Koc University, Rumelifeneri Yolu, 34450 Sariyer, Istanbul, Turkey

autor

Turkay M

• Department of Industrial Engineering, Koc University, Rumelifeneri Yolu, 34450 Sariyer, Istanbul, Turkey

Bibliografia

• [1] Elkington J., Cannibals with forks: the triple bottom line of 21st century business, Capstone, Oxford, 2002.
• [2] Corbett L.M., Sustainable operations management: a typological approach, Journal of Industrial Engineering and Management, 2, 1, 2009, 10-30.
• [3] Corbett C.J., Klassen R.D., Extending the horizons: environmental excellence as key to improving operations, Manufacturing and Service Operations Management, 8, 1, 2006, 5-22.
• [4] Corbett C.J., Kleindorfer P.R., Environmental management and operations management: introduction to part 1 (manufacturing and eco-logistics), Production and Operations Management, 10, 2001a, 107-11.
• [5] Corbett C.J., Kleindorfer P.R., Environmental management and operations management: introduction to part 2 (integrating operations and environmental management systems), Production and Operations Management, 10, 2001b, 225-27.
• [6] Gupta M.C., Environmental management and its impact on the operations function, International Journal of Operations and Production Management, 15(8), 1995, 34-51.
• [7] Gupta S.M., Lambert A.J.D., Environment conscious manufacturing. CRC Press, 2009.
• [8] Kleindorfer P.R., Singhal K., Wassenhove L.N.V., Sustainable operations management, Production and Operations Management, 14, 4, 2005, 482-92.
• [9] Linton J.D., Klassen R., Jayaraman V., Sustainable supply chains: an introduction, Journal of Operations Management, 25, 6, 2007, 1075-82.
• [10] Sasikumar P., Kannan G., Issues in reverse supply chain, part III: classification and simple analysis, International Journal of Sustainable Engineering, 2, 2009, 2-27.
• [11] Seuring S., Muller M., From a literature review to a conceptual framework for sustainable supply chain management, Journal of Cleaner Production, 16, 2008, 1699-1710.
• [12] Srivastava S.K., Green supply-chain management: a state-of-the-art literature review, International Journal of Management Reviews, 9, 2007, 53-80.
• [13] Bonney M., Jaber M., Environmentally responsible inventory models: non-classical models for a non-classical era, International Journal of Production Economics, 133, 1, 2011, 43- 53.
• [14] Chen X., Benjaafar S., Elomri A., The carbon-constrained EOQ, Operations Research Letters, 41, 2, 2013, 172-179.
• [15] Manikas A., Godfrey M., Inducing green behavior in a manufacturer, Global Journal of Business Research, 4, 2, 2010, 27-38.
• [16] Letmathe P., Balakrishnan, N., Environmental considerations on the optimal product mix, European Journal of Operational Research, 167, 2005, 398-412.
• [17] Penkuhn T., Spengler T., Pouchert H., Rentz O., Environmental integrated production planning for ammonia synthesis, European Journal of Operational Research, 97, 1997, 327-336.
• [18] Bauer J., Bektaş T., Crainic T.G., Minimizing greenhouse gas emissions in intermodal freight transport: an application to rail service design, Journal of the OperationalResearch Society, 61, 3, 2009, 530-542.
• [19] Kim N.S., Janic M., Wee B., Trade-off between carbon dioxide emissions and logistics costs based on multi objective optimization, Transportation Research Record, 2139, 2009, 107-116.
• [20] Lee D., Dong M., Bian W., The design of sustainable logistics network under uncertainty, International Journal of Production Economics, 128, 2010, 159-66.
• [21] Chaabane A., Ramudhin A., Paquet M., Design of sustainable supply chains under emission trading scheme, International Journal of Production Economics, 135, 1, 2011, 37-49.
• [22] Neto J.Q.F., Bloemhof-Ruwaard, van Nunen J.A.E.E., van Heck E., Designing and evaluating sustainable logistics networks, International Journal of Production Economics, 111, 2008, 195-208.
• [23] Erkut E., Karagiannidis A., Perkoulidis G., Tjandra S.A., A multicriteria facility location model for municipal solid waste management in North Greece, European Journal of Operational Research, 187, 2008, 1402-21.
• [24] Zipkin P.H., Foundations of inventory management, McGraw Hill, 2000.
• [25] Nahmias S., Production and operations analysis, McGraw Hill-Irwin, 1993.
• [26] Harris F.W., How many parts to make at once?, Operations Research, 38, 6, 1990, 947-50. [Reprinted from Factory: The Magazine of Management, 10, 2, 1913, 135-136].
• [27] Turkay M., Environmentally conscious supply chain management, in: Papageorgiou L., Georgiadis M. (eds.), Process systems engineering: supply chain optimization, WILEY-VCH, Weinheim, 2008, 45-86.
• [28] Wiedmann T., Minx J., A definition of carbon footprint, in: Pertsova C.C. (ed.), Ecological economics research trends, Nova Science Publishers, Hauppauge NY, USA, 2008, 1-11.
• [29] GHG Protocol, The Greenhouse Gas Protocol Initiative, http://www.ghgprotocol.org/ [accessed on 29/02/2012].
• [30] ISO, International Organization for Standardization, http://www.iso.org/ [accessed on 29/02/2012].
• [31] WRI, World Resource Institute, http://www.wri.org/ [accessed on 29/02/2012].
• [32] EcoTransIT, http://www.ecotransit.org/ [accessed on 29/02/2012].
• [33] Carbon Trust, http://www.carbontrust.co.uk/cut-carbon-reduce-costs/calculate/carbonfootprinting/ pages/carbon-footprinting.aspx [accessed on 29/02/2012].
• [34] Penman I., Stock J.R., Environmental issues in logistics, in: Robeson J.F., Copacino W.C. (eds.), The Logistics Handbook, The Free Press, New York, 1994, 840-57.
• [35] Stock J.R., Reverse logistics, green logistics, and packaging, in: Taylor G.D. (ed.), Logistics engineering handbook. CRC, Boca Raton, 2008, 25-116.
• [36] Stock J.R., Boyer S.L., Harmon T., Research opportunities in supply chain management, Journal of the Academy of Marketing Science, 38, 1, 2010, 32-41.
• [37] Sundarakani B., de Souza R., Goh M., Modeling carbon footprints across the supply chain, International Journal of Production Economics, 128, 1, 2010, 43-50.
• [38] UNFCCC, Kyoto Protocol, http://unfccc.int/kyotoprotocol/items/2830.php [accessed on 29/02/2012].
• [39] Brenton P., Edwards-Jones G., Jensena M.F., Carbon labeling and low income country exports: a review of the development issues, Development Policy Review, 27, 3, 2009, 243-267.
• [40] Edwards-Jones G., Plassmann K., York E.H., Hounsome B., Jones D.L., Milà i Canals L., Vulnerability of exporting nations to the development of a carbon label in the United Kingdom, Environmental Science and Policy, 12, 2009, 479-90.
• [41] EU European Union, Emissions Trading System, http://ec.europa.eu/clima/policies/ets/index_en.htm [accessed on 29/02/2012].
• [42] European Commission, Questions and answers on emissions trading and national allocation plans, http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/08/35&format=HTML&aged=0&lang [accessed on 29/02/2012].
• [43] European Carbon Exchange, http://www.ecx.eu [accessed on 29/02/2012].
• [44] Supply-Chain Council, Supply-chain operations reference-model (SCOR), version 8.0, 2006.
• [45] ILO, International Labor Organization, http://www.ilo.org [accessed on 29/02/2012].
• [46] NZBCSD, New Zealand Business Council for Sustainable Development, Business guide to a sustainable supply chain: a practical guide. http://www.nzbcsd.org.nz/supplychain/ [accessed on 29/02/2012].
• [47] GAMS, GAMSIDE build 2496/2589, License date Dec 24, 2007. Build VIS 22.6 149.