Research Article

Influence of controllable lead time, premium price, and unequal shipments under environmental effects in a supply chain management

¹ Department of Mathematics & Statistics, Banasthali Vidyapith, 304 022 Banasthali, Rajasthan, India
² Department of Industrial & Management Engineering, Hanyang University, 15588 Ansan, Gyeonggi-do, South Korea

^* Corresponding author: bsbiswajitsarkar@gmail.com

Received: 10 June 2017
Accepted: 30 May 2018

Abstract

Recently, carbon emission becomes a major issue during transportation of products from one player to another player. Due to the increasing number of single-setup-multi-delivery (SSMD) policies by several industries, fixed and variable transportation cost and carbon emission cost are considered. The aim of the model is to reduce the total cost of supply chain for controlling the lead time and to diminish setup cost by a discrete investment. A premium cost is introduced and Stackelberg game policy is employed to obtain the analytical solution. Some numerical examples are given to validate the model. Sensitivity analysis and managerial insights are given to show the applicability of the model. Finally, the outcomes show that the model minimizes the optimum cost at the optimal values of the decision variables. It is found that the total cost is minimized when the multi-buyer is leader and vendor is follower.