Carbon Footprint and Order Quantity in Logistics
Abstract: Even without
economic factors and government regulations, the pressure and motivation of
corporation to reduce emission are still increasing. This is because the key
factors for corporation to reduce emissions have become corporate social
responsibility and identification of low-carbon value by consumer and society
from economic trade-off and government regulations. So, the purpose of this
paper is to provide quantity methods for the logistics organizations with wish
of voluntary reduction and social responsibility.
Design/methodology/approach: Being difference from the traditional
research that takes economic value as object, this paper takes carbon footprint
as object directly, order quantity as decision variable. By referring to the
traditional economic order quantity model, the paper creates logistics carbon
footprint model which takes transport and inventory into account. Then it
solves the model by calculating the values of order quantity, carbon footprint
and revenue using the method of optimization.
Findings and Originality/value: By solving and comparing the two models
of economic order quantity model and carbon footprint model, it gets some
results, such as carbon optimization order quantity, the effects order quantity
deviating from economic order quantity or carbon order quantity having on
economic or carbon footprint values, which can give some meaningful insight for
corporation to search out reduction opportunities by operations adjustment.
Originality/value: The study takes carbon footprint as object directly
and creates the corresponding quantity model. By comparing with the traditional
economic order quantity model, the paper provides quantity methods and obtains
some meaningful insights for the logistics organizations with wish of voluntary
reduction and social responsibility to reduce emissions by operations
adjustment.
Author: Tian Zhiyong, Huo
Lingyu, Shen Guicheng
Journal Code: jptindustrigg140057