Supply chain management aims to integrate environmental thinking with efficient energy consumption into supply chain management. It includes a flexible manufacturing process, more product delivery to customers, optimum energy consumption, and reduced waste. The manufacturing process can be made more flexible through volume agility. In this scenario, production cannot be constant, and with the concept of volume agility, production is taken as a decision variable under the effect of optimum energy consumption. Considering a two-echelon supply chain, we consider a producer and supplier with two-level-trade-credit policies (TLTCP) with the optimum consumption. To reduce the integrated total inventory cost, we believe that demand is a function of the credit period and selling price. The cost function is analyzed, either with the credit period dependent demand rate or with the selling price dependent demand rate through the numerical examples under energy costs. Energy and carbon emission costs are introduced in setup/ordering cost, holding cost, and item cost for producer and supplier. The effect of inflation on the total cost cannot be ignored; this model is being developed for deteriorating items with the simultaneous impact of volume agility, energy, carbon emission cost, and two-level-trade-credit policies with inflation. This supply chain model was solved analytically and obtained the optimum decision variables in a quasi-closed form solution. An illustrative theorem is being utilized to analyze the optimum result for all the decision parameters. The convexity of the objective function is being obtained analytically as well as graphically. Finally, numerical examples and sensitivity analysis are employed to illustrate the present study and with managerial insights.

Due to environmental protection and limited resource utilization at optimum level, remanufacturing of defective products or reused products is an essential strategy in green supply chain inventory control system. This paper presents a green supply chain inventory model for integrated production of new items and remanufacturing of redeemable returned items under a situation in which the vendor provides the buyer with a permissible delay of payments and supplies the serviceable items to the buyer on lot-for-lot basis. It is assumed that every member of the chain is ready to collaborate for the maximum benefit of the supply chain. A mathematical formulation is developed to derive the optimal number of deliveries and the replenishment cycle time for the integrated vendor-buyer inventory model. Theoretical results show the global optimality of the solution and it is concluded that the collaboration is profitable for the chain and participating members reach the optimal level under co-operative decision making. Numerical analysis is given to illustrate the theoretical results. Finally, a sensitivity analysis is reported to study the effect of various parameters.

In this paper we develop an integrated production-distribution model for deteriorating items in a two-echelon supply chain. The objective of this study is to develop an integrated inventory policy when the retailer invests on the preservation technology to reduce the product rate of deterioration and to investigate the model under conditions of permissible delay in payment and allowable shortages. This paper incorporates the concept of a credit period and develops a new inventory model to reflect real-life situations. Exact cost functions for the supplier, the buyer and the entire supply chain are developed. We outline a procedure for determining the optimal supply chain decisions with the objective of minimising the total system cost. Our approach is illustrated through a numerical example. Sensitivity analysis is also presented to illustrate this model.

The objective of this study is to develop a model for a two echelon supply chain, in which retailers' demand is seasonal with expiration date and he invests on the preservation technology to reduce the rate of product deterioration. This paper examines consumers' response to expiration dates for grocery store perishable products. We develop a conceptual framework that captures the frequency with which consumers check expiration dates and their willingness to pay for a perishable over its shelf-life. A solution procedure is presented to determine an optimal replenishment cycle, shortage period and preservation technology cost such that the net profit for the supply chain is maximised. A numerical example and sensitivity analysis are given to illustrate the model.