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Sourcing and production decisions for perishable items under quantity discounts and its impacts on environment
Liu, Lu1; Zhao, Qiuhong1,2; D. R. Santibanez Gonzalez, Ernesto3; Xi, Xunzhuo4
2021-07-29
Source PublicationJournal of Cleaner Production
ABS Journal Level2
ISSN0959-6526
Volume317Pages:128455
Abstract

Perishable raw materials are commonly used in people's daily life. However, some of the raw materials' perishability, such as fruits and milk, raises a vital concern in food supply chain during transportation, processing, storage and sales. In this study, we propose a novel sourcing-production-inventory (SPI) system considering single manufacturer and product, and analyze sourcing and production decisions under quantity discount and investigate the consequent impact on the natural environment due to spoilage of raw materials. First, considering ordering, storage, disposal and production costs, we also propose and develop a SPI model. Besides, we concretely analyze the impacts of quantity discounts on optimal solutions, objective function values, and the environment related issues. Our conclusions are also robust to the analysis using numerical methods. Moreover, the theoretical and computational results show that, quantity discount motivates the transfer of raw material's perishability from the supplier to the manufacturer, which would exacerbate the worsening of the environment. And the transfer is more evident when raw material's spoilage and disposal cost is low. To reduce raw material's spoilage, the government is suggested to impose an additional resource waste tax on the manufacturer. Other strategies to reduce the waste of resources are also discussed in the paper.

KeywordSourcing-production-inventory System Perishable Raw Materials Quantity Discount Time Varying Holding Cost Environment Sustainability
DOI10.1016/j.jclepro.2021.128455
URLView the original
Indexed BySCIE
Language英語English
WOS Research AreaScience & Technology - Other Topics ; Engineering ; Environmental Sciences & Ecology
WOS SubjectGreen & Sustainable Science & Technology ; Engineering, Environmental ; Environmental Sciences
WOS IDWOS:000722567600002
Scopus ID2-s2.0-85111567833
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Document TypeJournal article
CollectionFaculty of Business Administration
Corresponding AuthorZhao, Qiuhong
Affiliation1.School of Economics and Management, Beihang University, Beijing, 100191, China
2.Beijing International Science and Technology Cooperation Base for City Safety Operation and Emergency Support, Beijing, 100191, China
3.Department of Industrial Engineering, Faculty of Engineering, University of Talca, Curico, 3340000, Chile
4.Faculty of Business Administration, University of Macau, Macau, 999078, China
Recommended Citation
GB/T 7714
Liu, Lu,Zhao, Qiuhong,D. R. Santibanez Gonzalez, Ernesto,et al. Sourcing and production decisions for perishable items under quantity discounts and its impacts on environment[J]. Journal of Cleaner Production, 2021, 317, 128455.
APA Liu, Lu., Zhao, Qiuhong., D. R. Santibanez Gonzalez, Ernesto., & Xi, Xunzhuo (2021). Sourcing and production decisions for perishable items under quantity discounts and its impacts on environment. Journal of Cleaner Production, 317, 128455.
MLA Liu, Lu,et al."Sourcing and production decisions for perishable items under quantity discounts and its impacts on environment".Journal of Cleaner Production 317(2021):128455.
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