Economic and Environmental Comparison of Grouping Strategies in Coordinated Multi-Item Inventory Systems
Abstract
The increasing concerns for sustainability throughout supply chains are enforcing managers to plan their operations considering not only economic but also environmental performance. Inventory management is one of the main determinants of the costs incurred and emissions generated throughout supply chains as it defines the level of logistical operations, freight transportation, and warehousing activities. In this study, we analyze a multi-item inventory control system with coordinated shipments. In particular, we revisit the well-known deterministic joint replenishment problem (JRP) with economic and environmental objectives under indirect and direct grouping strategies. We formulate and develop solution methods for each bi-objective JRP and compare direct and indirect grouping strategies with respect to their economic as well as environmental performance. A set of numerical studies is presented to examine the settings where a specific grouping strategy can be economically and environmentally better than the other.
Recommended Citation
D. Konur and B. Schaefer, "Economic and Environmental Comparison of Grouping Strategies in Coordinated Multi-Item Inventory Systems," Journal of the Operational Research Society, vol. 67, no. 3, pp. 421 - 436, Palgrave Macmillan Ltd., Mar 2016.
The definitive version is available at https://doi.org/10.1057/jors.2015.67
Department(s)
Engineering Management and Systems Engineering
Research Center/Lab(s)
Intelligent Systems Center
Keywords and Phrases
Carbon; Chains; Environmental impact; Environmental management; Freight transportation; Supply chains; Sustainable development; Carbon Emissions; Coordination; Environmental objectives; Environmental performance; Inventory management; Joint replenishment problem; Logistical operations; Multi-item; Inventory control; Carbon emissions; Multi-item system
International Standard Serial Number (ISSN)
0160-5682; 1476-9360
Document Type
Article - Journal
Document Version
Citation
File Type
text
Language(s)
English
Rights
© 2016 Palgrave Macmillan Ltd., All rights reserved.
Publication Date
01 Mar 2016
Comments
This study is partially supported by US DOT through National University Transportation Center at the Missouri University of Science and Technology under Project # 00043159 and University of Missouri System Interdisciplinary Intercampus Research Program.