Simulation Research on Supply Chain Carbon Emission Model With SD

Congcong LÜ, Xiaojun LONG

Abstract


In this paper, a three-level supply chain model was established based on the theory of system dynamics, which composed of supplier, wholesaler and retailer. The effect of production delay and expected inventory to the total cost of the supply chain and carbon emissions has analyzed by the simulation model. The results show that the three-lever supply chain system was affected by the bullwhip effect in the emission model. As the production delay time increased, the inventory volatility of the supplier and the total emission of supply chain increased, but the total cost of supply chain increased first then decreased. With the increased of the expected inventory duration time, the carbon emissions of each member increased, and the similar variation trend achieved for the total cost of the supply chain. The minimum of the expected inventory duration time was profitable for supply chain, but not for every member. Finally, the expected inventory duration time was divided into three levels based on the expected stocking duration. The results indicated that specific combination of production delay time and expected stock duration determined by the credits of carbon emission.


Keywords


Compulsory carbon emissions; System dynamics; Bullwhip effect; Three-level supply chain

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References


Benjaafar, S., Li, Y. Z., & Daskin, M. (2013). Carbon footprint and the management of supply chains: Insights from simple models. IEEE Transactions on Automation Science and Engineering, 10(1), 1-18.

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Hua, G. W., Cheng, T. C. E., & Wang, S. Y. (2011). Managing carbon footprints in inventory management. International Journal of Production Economics, 2(13), 178-185.

Kroes, J., Subramanian, R., & Subramanyam, R. (2012). Operational compliance levers, environmental performance, and firm performance under cap and trade regulation. Manufacturing and Service Operations Management, 14(2), 186-201.




DOI: http://dx.doi.org/10.3968/n

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