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Mathematical Problems in Engineering
Volume 2015 (2015), Article ID 469486, 13 pages
http://dx.doi.org/10.1155/2015/469486
Research Article

Effect of Unequal Lot Sizes, Variable Setup Cost, and Carbon Emission Cost in a Supply Chain Model

1Department of Industrial & Management Engineering, Hanyang University, Ansan, Gyeonggi-do 426 791, Republic of Korea
2Department of Applied Mathematics with Oceanology and Computer Programming, Vidyasagar University, Midnapore 721 102, India

Received 21 August 2015; Accepted 5 October 2015

Academic Editor: Paulina Golinska

Copyright © 2015 Biswajit Sarkar et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

Due to heavy transportation for single-setup multidelivery (SSMD) policy in supply chain management, this model assumes carbon emission cost to obtain a realistic behavior for world environment. The transportation for buyer and vendor is considered along with setup cost reduction by using an investment function. It is assumed that the shipment lot size of each delivery is unequal and variable. The buyer inspects all received products and returns defective items to vendor for reworking process. Because of this policy, end customers will only obtain nondefective items. The analytical optimization is considered to obtain the optimum solution of the model. The main goal of this paper is to reduce the total cost by considering carbon emission during the transportation. A numerical example, graphical representation, and sensitivity analysis are given to illustrate the model.