Optimizing the sales level of perishable goods in a two-echelon green supply chain under uncertainty in manufacturing cost and price

Abstract

ABSTRACT The present study addresses a green model of vendor managed inventory policy for perishable goods in a multi-period two-echelon supply chain network. Shortage is permissible and the unsatisfied demand is considered as back order. In addition, uncertainties in prices and manufacturing costs are considered as the main contribution of this study. Two objective functions are considered to optimize simultaneously. (a) Maximizing profits and (b) minimizing the amount of carbon emissions. This problem is formulated and the effects of uncertainty in key parameters are investigated using several decision trees. The result of the study shows the efficiency of the proposed procedure in dealing with uncertainties. Accordingly, increasing backorder costs lead to a decrease in order quantity and a decrease in profit value. However, this change reduces the emission of pollutants due to the reduced need for transport. In addition, profit levels increase and carbon emissions decrease as the product lifespan increases. Graphical abstract