An Integrated Vendor – Buyer Model WithConsideration Of Logistics And Green Investment Under Strict Carbon Cap Policy

Document Type : Primary Research paper


Department of Mathematics,Holy Cross College (Autonomous),Affiliated to Bharathidasan University,Tiruchirappalli-620002, India


Carbon emissions created from various activities of the firm which constitute a
significant threat to the environment. Firms are looking for solutions to reduce the carbon
emission due to carbon policies imposed by various government regulatory bodies. In this
paper, strict carbon cap policy is considered for an inventory management in supply chains
with consideration of logistics and green investment. Inventory holding, production, setup,
emission from green technology and transportation are the major sources of emissions
which affects the environment. The main aim is to find the optimal order quantity and the
number of shipments. The objective is to minimize the total cost of the supply chain and
satisfying the carbon emission constraint. Finally, a numerical example is given to explain
the proposed model.