Allocating the cost of the carbon footprint produced along a supply chain, among the stakeholders involved

2014 ◽  
Vol 5 (4) ◽  
pp. 556-568 ◽  
Author(s):  
Vasilis Kanakoudis ◽  
Anastasia Papadopoulou
Keyword(s):  
Supply Chain ◽  
Carbon Footprint ◽  
Global Climate ◽  
Selling Price ◽  
Fair Price ◽  
Profit Rate ◽  
Product Service ◽  
Total Profit ◽  
The Cost ◽  
Usage Processes

Greenhouse gas emissions are widely considered nowadays one of the main causes for global climate change. Every product's supply chain consists of several energy usage processes. Three new approaches (end-userpays; production based; and profit based) regarding the allocation of the cost related to the carbon footprint (CF) produced, among producers and users are being presented. These approaches vary according to the ‘blame’ attached to each stakeholder involved, during the several phases of the ‘product's’ life cycle. According to the first approach, CO2 emissions occur as the need for the product/service exists. The second approach allocates the CF production-related cost in each step of the supply chain according to not only how much of this CF is produced in each step, but considering also the CF produced in the previous steps. The allocation follows the profit rate (profit/selling price) of each step of the supply chain. At the third approach, the profit rate used has to do with the profit of each step compared to the total profit of the entire supply chain. To achieve a socially fair price of a product, all stakeholders involved should pay their fair shares, to guarantee that all costs related to the product's supply chain are being fully recovered.

scholarly journals Analysis on carbon footprint: A case study of Gorkhapatra national daily in Nepal

2021 ◽  
Vol 4 (1) ◽  
pp. 42-49
Author(s):  
Anukram Sharma ◽  
Khem N Poudyal ◽  
Nawraj Bhattarai
Keyword(s):  
Fuel Consumption ◽  
Carbon Footprint ◽  
Carbon Emissions ◽  
Carbon Emission ◽  
Raw Materials ◽  
Global Climate ◽  
Total Carbon ◽  
Daily Newspaper ◽  
The Cost

Study of carbon footprint is an emerging field which provides statistical analysis about the contribution of an activity on global climate change. Every human activity in daily life is achieved at the expense of those substances which directly or indirectly contribute to global warming. In this era of global communication, humans are habitual to know about the ongoing changes in the world. Newspapers are one of the reliable sources for getting updated about the global information. Paper-based newspapers come at the cost of greenhouse gas emissions. So, this article based upon an analysis of carbon footprint of Nepal’s national daily newspaper provides evaluation of each of the following: carbon emission during the manufacturing of raw materials, carbon emission from fuel consumption during transportation of raw materials, carbon emissions during the printing of newspaper and carbon emission from the fuel consumption during the transportation of printed newspaper. During the study period of 2019 A.D., the result shows that the total carbon emission of Gorkhapatra newspaper was found to be 2308.5 kg CO2e per ton. The upshot of this study provides not only thorough information about carbon emissions but also builds a foundation for calculation of carbon emissions from paper used in various sectors.

scholarly journals Self-Operated Store or Franchised Store? Optimal Decisions for Online-to-Offline Supply Chain with a Demand Shift

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Feng Wei ◽  
Yan Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Coordination Mechanism ◽  
Transfer Payment ◽  
Selling Price ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Demand Shifts

Mutual shifts in offline and online demand have become the norm in supply chain operations. The online-to-offline (O2O) supply chain system consists of a platform vendor, a physical store, and a product. The platform vendor sells the product directly online and governs either the centralized decision-making of a self-operated store or the decentralized decision-making of a franchised store offline. In this study, supply chain decision models with and without demand shifts are constructed to obtain optimal wholesale and selling prices and to maximize profit. The coordination mechanism under decentralized decision-making is designed to optimize the O2O supply chain, and the validity and applicability of the model are verified by numerical simulation. Results show that, regardless of whether a store is self-operated or franchised, the total profit of the system increases, and online and offline prices depend on a range of demand shifts. With an increased proportion of online demand shifts, the offline selling price and total profit of the system increase, whereas the online selling price and profit of the platform vendor decrease under decentralized decision-making. When the fixed transfer payment fee is within a certain range, a two-part-tariff contract can effectively coordinate the supply chain. This study not only contributes to the theoretical literature on O2O supply chain systems but also provides practical decision-making support for managers.

scholarly journals Supply Chain Planning for a Timber Harvesting Plus Sale Tender

2015 ◽  
Vol 63 (1) ◽  
pp. 217-225
Author(s):  
Josef Holoubek ◽  
Martina Lindnerová ◽  
Jitka Janová
Keyword(s):  
Linear Programming ◽  
Supply Chain ◽  
Real World ◽  
Programming Model ◽  
Timber Harvesting ◽  
Selling Price ◽  
Distribution Strategy ◽  
Real World Problem ◽  
The Cost ◽  
Office Software

Since 2010, the Czech State Forest Enterprise has been inviting timber-harvesting tenders while insisting on the forestry company purchasing the timber from the felled trees as well. To win, a tender must offer the greatest difference between the price of the timber purchased and the cost of the operations. Thus, the forest companies are now facing new problem: apart from minimizing the logging costs they are searching for a cross-cutting and mill-distribution strategy that maximizes the selling price of the harvested timber. The optimization model devised by the present paper provides support for finding an optimal timber selling strategy and, as an important contribution, include a detailed plan for cross-cutting the logs and assign them to the particular customers. We keep the support accessible via common office software and the cross-cutting and customer-assigning problem is formulated as a linear programming model for EXCEL, a particular real-world problem is solved and, using expert comparison, the model appears to provide very good results.

scholarly journals Cost Structure Analysis in Inter Island Perishable Goods Transport (Case Study: South Konawe Citrus, Southeast Sulawesi, Indonesia)

2018 ◽  
Vol 4 (2) ◽  
pp. 170
Author(s):  
Kuncoro Harto Widodo ◽  
Dwi Ardianta Kurniawan
Keyword(s):  
Supply Chain ◽  
Rural Areas ◽  
Raw Materials ◽  
Waiting Times ◽  
High Price ◽  
Selling Price ◽  
Market Demand ◽  
Farm Level ◽  
On The Road ◽  
The Cost

The objectives of this paper are to measure prices and costs on the supply chains of fresh oranges products. It also qualitatively investigates supply chain bottlenecks and their impact in terms of access toward markets for small producers in rural areas. The analysis of supply-chain bottlenecks is focusing on the breakdown of costs (production, post-harvest, and logistics (transport)) within the supply chain. The location study is in South Konawe, Southeast Sulawesi, Indonesia which is known as one of the largest citrus producer in Indonesia. The results show that the formation of the price of oranges is formed with the following characteristics: 1) cost at the farm level is made up of costs for production activities and processing activities are not done because orange is sold in the form of raw materials, 2) factors that affect the cost at the trade level is the infrastructure condition, mileage and processes during delivery, and 3) the selling price is determined by the trader in accordance with market demand. Merchants were indicated to have the power to determine the prices are a big trader in Java, with implications for the pricing down to the farm level. The condition of infrastructure is an important aspect in the formation of prices. Badly damaged roads often cause farmers cannot sell their production to other regions because of the high risk of damage to goods due mired vehicles on the road, as well as a long time transporting. Another issue that arises is related to inadequate governance in the Port of Kendari, Southeast Sulawesi which caused the cost of transportation by the port to be expensive. The existence of interests of the parties that play a role in making the port of unloading handling process becomes inefficient. High price made by the association of workers unloading for example, makes the high cost of handling goods. Not to mention the imbalance in the flow of goods in and out of the Port of Kendari, mainly from Java, which caused the vessel operator must take into account the condition of empty when the ship returned in Java. Another condition is a problem with the transport of goods is the last priority given to freight transport compared to passenger transport. This often makes long waiting times at the port, which will affect the transported goods, especially perishables goods such as fruits. Generally this indicates inefficient trading patterns oranges in South Konawe requiring further intervention of the various parties concerned. Keywords: Sulawesi Citrus; South Konawe; Cost; Price

scholarly journals Analisis Penerapan Job Order Costing Method Terhadap Harga Pokok Produksi Untuk Meningkatkan Akurasi Harga Jual Produk Pada Maju Jaya Aluminium Kecamatan Cina Kabupaten Bone

2019 ◽  
Vol 1 (2) ◽  
pp. 143-162
Author(s):  
Martinah Martinah ◽  
Muctar Nuhung
Keyword(s):  
Calculation Method ◽  
Production Cost ◽  
Raw Material ◽  
Selling Price ◽  
Labor Costs ◽  
Profit Rate ◽  
Cost Of Production ◽  
The Difference ◽  
The Cost

This study aims to compare the cost of the 2M CA type of storefront production that has been applied in Forward Jaya Aluminum by calculating the production cost principle using the job order costing method. Data is collected through observation, interviews, and documentation. Furthermore, the data is analyzed using qualitative methods. While the calculation method used in this study is the method of job order costing or the cost of the order. The results of the study found that the calculation of the cost of production of type 2 M CA storefront was IDR 1,300,000 with a set profit rate of 19.6% with a selling price of IDR 1,550,000, while the calculation using the job order costing method was equal to Rp 1,329,217 with a selling price of Rp 1,589,744 with a profit rate of 19.6%. Based on the results of his analysis, the difference in the calculation of cost of goods manufactured is due to the fact that Maju Jaya Aluminum does not identify in detail the elements of the cost of production, so the cost of production calculated by Maju Jaya Aluminum is lower than using the job order costing method. We recommend that Maju Jaya Aluminum correct the calculation of cost of goods manufactured according to the job order costing method by calculating and identifying raw material costs, direct labor costs, and factory head costs so that the specified selling price can be accurate and increase.

scholarly journals Transfer of Risk in Supply Chain Management with Joint Pricing and Inventory Decision Considering Shortages

Mathematics ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 638
Author(s):  
Irfanullah Khan ◽  
Biswajit Sarkar
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Sensitivity Analyses ◽  
Selling Price ◽  
Distribution Free ◽  
Chain Management ◽  
Distribution Free Approach ◽  
Joint Pricing ◽  
Inventory Decision ◽  
The Cost

This study is the first to consider a distribution-free approach in a newsvendor model with a transfer of risk and back-ordering. Previously, in many articles, discrete demand is considered. In this model, we consider a newsvendor selling a single seasonal item with price-dependent stochastic demand. Competition in markets has forced the retailer and manufacturer to coordinate in decentralized supply chain management. A coordination contract is made between a retailer and manufacturer to overcome the randomness of demand for a short-life-cycle product. The retailer pays an additional amount per product to transfer the risk of unsold items. The manufacturer bears the cost of unsold products from the retailer. Shortages are allowed with back-ordering costs during the season. The distribution-free model is developed and solved with only available demand data of mean and standard deviation. Stackelberg’s game approach is used to calculate the optimal ordering quality and price. This model aims to maximize expected profit by optimizing unit selling price and ordered quantity through coordination. To illustrate that the model is robust, numerical experiment and sensitivity analyses are conducted for both decentralized and centralized supply chain management. For applicability of the model in the real-world business scenario, managerial insights are provided with sensitivity analysis.

Inventory optimization considering the vehicle capacity and specifics of cash flows at rental storage sites

2020 ◽  
pp. 77-90
Author(s):  
V.D. Gerami ◽  
I.G. Shidlovskii
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Sufficient Conditions ◽  
Cash Flows ◽  
Management Systems ◽  
Cargo Capacity ◽  
Special Modification ◽  
The Cost ◽  
Necessary And Sufficient ◽  
Vehicle Capacity

The article presents a special modification of the EOQ formula and its application to the accounting of the cargo capacity factor for the relevant procedures for optimizing deliveries when renting storage facilities. The specified development will allow managers to take into account the following process specifics in the format of a simulated supply chain when managing inventory. First of all, it will allow considering the most important factor of cargo capacity when optimizing stocks. Moreover, this formula will make it possible to find the optimal strategy for the supply of goods if, also, it is necessary to take into account the combined effect of several factors necessary for practice, which will undoubtedly affect decision-making procedures. Here we are talking about the need for additional consideration of the following essential attributes of the simulated cash flow of the supply chain: 1) time value of money; 2) deferral of payment of the cost of the order; 3) pre-agreed allowable delays in the receipt of revenue from goods sold. Developed analysis and optimization procedures have been implemented to models of this type that are interesting and important for a business. This — inventory management systems, the format of which is related to the special concept of efficient supply. We are talking about models where the presence of the specified delays for the outgoing cash flows allows you to pay for the order and the corresponding costs of the supply chain from the corresponding revenue on the re-order interval. Accordingly, the necessary and sufficient conditions are established based on which managers will be able to identify models of the specified type. The purpose of the article is to draw the attention of managers to real opportunities to improve the efficiency of inventory management systems by taking into account these factors for a simulated supply chain.

A study of cane supply benefits associated with ad hoc mechanical harvesting to mitigate cutter absenteeism

2013 ◽  
pp. 532-538 ◽  
Author(s):  
Muhammad Kadwa ◽  
Carel N Bezuidenhout
Keyword(s):  
Supply Chain ◽  
South African ◽  
Ad Hoc ◽  
Sugar Mill ◽  
The South ◽  
Optimum Performance ◽  
Kwazulu Natal ◽  
Cane Quality ◽  
The Cost

The Eston Sugar Mill is the newest in the South African KwaZulu-Natal sugar belt. Like most other mills, it can be argued that there are inefficiencies in the supply chain due to systematic issues, which reduce optimum performance. It was alleged that mill processes are slowed, or stopped, on Sundays, Mondays, as well as some Tuesdays and Wednesdays, due to pay-weekends, because of the associated cutter absenteeism. This increases the length of the milling season (LOMS), increases milling costs and reduces the average cane quality for the season. Data on cane deliveries to the Eston Mill, over a period of five seasons, were analysed to study the magnitude of the problem. It was statistically verified that cane shortages occur immediately after payweekends and it was conservatively estimated that cutter absenteeism occurs between 25–29 days per season, which increases the LOMS by six to ten days. The associated cost of this problem equated to an average of US$159,500 (approximately EUR120,000) per milling season. In this paper, an alternative harvesting system scenario is suggested, assuming that mechanical harvesters be used after a pay-weekend, to mitigate the impacts of cutter shortages. However, the solution is calculated to be risky. When the cost of new equipment was considered, only two of the five seasons were able to justify the associated costs.

Optimal Inventory Policies for Price and Time Sensitive Demand under Advertisement

2020 ◽  
Vol 13 ◽  
Author(s):  
Nita Shah ◽  
Ekta Patel ◽  
Kavita Rabari
Keyword(s):  
Cycle Time ◽  
Quadratic Function ◽  
Solution Procedure ◽  
Vital Role ◽  
Optimal Number ◽  
Deteriorating Items ◽  
Marginal Effect ◽  
Selling Price ◽  
Total Profit ◽  
Back Order

Aims: This article analyzes an inventory system for deteriorating items. The demand is quadratic function of time and is dependent on time, price and advertisement. Shortages are allowed and partially backlogged. Background: Demand and pricing are the two most crucial factors in inventory policy for any business to be successful. In today’s era of competitive circumstances, any product is promoted through advertisement, which plays a vital role in changing the demand pattern among the community. The marketing and demonstration of an item by time-to-time with fashionable advertisements through well-known media such as TV, radio, newspaper, magazine, etc. However, this idea is not always true for some goods like wheat, vegetables, fruits, food grains, medicines and other perishable goods due to their deteriorating nature and this in turn decreases demand for such goods. Deterioration may define as decay, damage, spoilage, evaporation, obsolescence, pilferage. Hence, deterioration effect is a major part in inventory control theory. So in this article demand rate is considered to be a function of selling price, time and occurrence of advertisement instantaneously. Objective: A solution procedure is obtained to find optimal number of price changes and optimal selling price to maximize the total profit. Method: Classical Optimization. Result: From the sensitivity analysis table, it can be seen that the optimal profit is highly sensible to advertisement coefficient and purchase cost. With an increment in rate of deterioration, selling price decreases. Scale demand has reasonable effect on cycle time and selling price. When the value of increase, the cycle length and profit goes on decreasing. Growth in profit is observed if we increase parameter b, higher will be the profit. Price elasticity is sensible parameter with respect to selling price. If backlogging rate increases, the profit will decreases. The inventory parameters holding cost, back order cost and lost sale cost have marginal effect on total profit. Conclusion: In this article, an inventory model is proposed for deteriorating items with variable demand depends upon the advertisement, selling price of the item and time. Shortages are allowed and partially backlogged and backlogging rate depends on the waiting time for the next replenishment. From this article, we can conclude that the parameters are insensible with respect to optimal profit, cycle time and selling price and rest of the parameters have practical output on total profit.

scholarly journals Evaluating the Economic Viability of Agricultural Pellets to Supplement the Current Global Wood Pellets Supply for Bioenergy Production

Energies ◽  
2021 ◽  
Vol 14 (8) ◽  
pp. 2263
Author(s):  
Mahmood Ebadian ◽  
Shahab Sokhansanj ◽  
David Lee ◽  
Alyssa Klein ◽  
Lawrence Townley-Smith
Keyword(s):  
Supply Chain ◽  
Western Europe ◽  
Small Scale ◽  
Economic Activities ◽  
Wood Pellets ◽  
Logistics System ◽  
Global Marketplace ◽  
Biomass Logistics ◽  
Production And Distribution ◽  
The Cost

In this study, an inter-continental agricultural pellet supply chain is modeled, and the production cost and price of agricultural pellets are estimated and compared against the recent cost and price of wood pellets in the global marketplace. The inter-continental supply chain is verified and validated using an integration of an interactive mapping application and a simulation platform. The integrated model is applied to a case study in which agricultural pellets are produced in six locations in Canada and shipped and discharged at the three major ports in Western Europe. The cost of agricultural pellets in the six locations is estimated to be in the range of EUR 92–95/tonne (CAD 138–142/tonne), which is comparable with the recent cost of wood pellets produced in small-scale pellet plants (EUR 99–109/tonne). The average agricultural pellet price shipped from the six plants to the three ports in Western Europe is estimated to be in a range of EUR 183–204 (CAD 274–305/tonne), 29–42% more expensive that the average recent price of wood pellets (EUR 143/tonne) at the same ports. There are several potential areas in the agricultural pellet supply chains that can reduce the pellet production and distribution costs in the mid and long terms, making them affordable supplement to the existing wood pellet markets. Potential economic activities generated by the production of pellets in farm communities can be significant. The generated annual revenue in the biomass logistics system in all six locations is estimated to be about CAD 21.80 million. In addition, the logistics equipment fleet needs 176 local operators with a potential annual income of CAD 2.18 million.

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