Abstract
This paper presents a multiperiod supply chain with freight carriers network model. In this model manufacturers, retailers, and carriers maximize the net present value (NPV) of their investments in ecologically friendly technology. Future production, inventory, transaction, and transportation costs savings are used to help fund investments. The environmental impact of production, inventory, transportation, and consumption of products in the supply chain network are all integrated. The tradeoff between the initial technology investment and its ecological footprint effect is considered for the supply chain planning period. We provide variational inequality formulations of the equilibrium conditions and then propose the modified projection method, along with conditions for convergence. Numerical examples are examined with an analysis of the effects of ecologically friendly technology investments on supply chain network production, transportation, and sales.
| Original language | English |
|---|---|
| Peer-reviewed scientific journal | European Journal of Operational Research |
| Volume | 266 |
| Issue number | 3 |
| Pages (from-to) | 934-949 |
| Number of pages | 16 |
| ISSN | 0377-2217 |
| DOIs | |
| Publication status | Published - 01.05.2018 |
| MoE publication type | A1 Journal article - refereed |
Keywords
- 512 Business and Management
- Green supply chain management
- Game theory
- Multiperiod planning
- Net present value
- Technology investment