You are on page 1of 7

Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

Advances In Industrial Engineering And Management


(AIEM)
DOI: http://doi.org/10.7508/aiem.02.2020.20.26

ISSN: 2222-7059 (Print)


EISSN: 2222-7067 (Online)

ARTICLE

A SYSTEMATICAL REVIEW ON THE ECONOMIC ORDER QUANTITY MODEL WITH


CARBON EMISSION: 2010 - 2020
Bellachintya Reira Christata, Yosef Daryanto*

Department of Industrial Engineering, Universitas Atma Jaya Yogyakarta, Indonesia


*
Corresponding Author E-mail: yosef.daryanto@uajy.ac.id

This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in
any medium, provided the original work is properly cited.

ARTICLE DETAILS ABSTRACT

Article History: For about 10 years, research on low carbon inventory management grows significantly intending to optimize
the inventory system profit while maintaining the environmental effect in terms of carbon emissions. This paper
Received 2 December 2020 presents a systematic literature review on low carbon inventory studies, particularly for the single echelon
Accepted 18 December 2020 economic order quantity (EOQ) models. The study covers journal publications from 2010 until 2020 indexed
Available online 25 December 2020 in the Scopus database. Thirty-three relevant articles are identified. Besides descriptive analysis, this research
categorizes the articles based on the inventory system affecting factors. The relationship between each factor and
the emission is explored. Finally, it identifies several research gaps to facilitate other researchers in extending
previous studies. The result recommends further research on the low carbon EOQ model considering the effect
of inventory issuing policy, multiple-warehouse, different payment methods, rework and remanufacturing of
product, and advanced technology adoption.

KEY WORDS

Economic Order Quantity, Carbon Emission, Literature Review.

1. INTRODUCTION review on low carbon supply chain management studies focusing on


the sources of emissions, types of emission policies, demand structure,
One focus in the development of today’s global logistics system is the and planning horizon [7]. The study recommended an integrated
effort to build a logistics system that is environmentally friendly in consideration of emissions from production, transportation, and
the framework of sustainable development. The transportation and warehousing in the quantitative supply chain inventory model.
industrial sector are the largest CO2 emissions contributors [1]. This
awareness inspired many researchers, industry, and other organizations From the above existing literature studies, we identify a need to do a
to develop inventory system models that can minimize the resulting narrow but deep literature study that focuses on the economic order
carbon emissions. Hua et al. investigated the methods of how industries quantity (EOQ) model of a single echelon inventory system. Since the
managing the inventory management carbon footprint [2]. The study development of the EOQ model at the beginning of the 20th century,
considered the effect of different carbon emission regulations, i.e. carbon researchers have identified and incorporated many issues that affect the
tax, carbon cap, and carbon trade on the inventory decisions. Bonney & optimum order decision regarding total cost or profit such as quality,
Jaber is the early researchers that incorporated carbon emission costs reliability, demand pattern, deterioration, etc. [8]. Early studies in low
into the economic order quantity decision model [3]. Meanwhile, Wahab carbon EOQ models had considered some of the key issues but others
et al. studied the optimal ordering quantity in a cooperative supply chain had not. Therefore, our literature review will comprehensively identify
inventory system [4]. key EOQ issues that have and have not been studied. Further, this study
aims to summarize the effect of the issues that have been studied on
The emerging of low carbon supply chain inventory management topics emissions and to find potential future studies to uncover the effects of
also inspires some researchers to do literature reviews of the current under-studied or un-studied EOQ issues. Following this introduction, we
development and potential future innovation. Su et al. conducted a present some basic theories in section 2. Section 3 explains the research
literature review on operation management with a carbon emission methodology of this literature review. Section 4 presents the finding
consideration which is related to inventory management [5]. They and discusses the result. Finally, the conclusion and some research
identified four groups of models that consider different carbon policies suggestions are summarized in section 5.
in the research, i.e., economic order quantity, lot sizing, news vendor,
and supply chain model. Das & Jharkaria studied a broader context 2. LITERATURE REVIEW
by analyzing low carbon practices in supply chain operation, network
design, and collaboration [6]. The low carbon operation includes Global warming and other environmental issues influence the current
inventory management similar to Su [5]. Chelly et al. also conducted a industry. Efforts to reduce the negative impact of business activities

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

on the environment have become global awareness. No exception to descriptive analysis, category selection, and material evaluation [16].
the negative impact of logistics activities. Many studies show that most The process, especially the analysis and evaluation may require several
carbon emissions come from materials or energy consumed in the looping processes as feedback and correction may exist [17].
production process [9]. In particular, knowledge of the effects of carbon
emissions on global warming has inspired many researchers, industry, 3. RESEARCH METHODOLOGY
and other organizations to develop logistics systems, including inventory
systems that produce as few carbon emissions as possible. Bonney & Following the literature review processes from Mayring, our research
Jaber developed an inventory model that helped reflect environmental consists of four stages as illustrated in Figure 1 [16]. The whole process
needs [4]. Several factors are considered such as emissions from is willing to answer the following research questions:
transportation activities and the waste generated by each lot.
RQ1. What key issues of the EOQ model are studied in the low carbon
Carbon footprint can be used to measure the total amount of CO2 emissions EOQ literature [8]?
of an activity, such as ordering goods, producing, transporting, storing,
consuming, and disposing or recycling their products. In their study, RQ2. How do the key issues relate to the emission level?
researchers calculated the cost of carbon emissions in their supply chain
decision models. Previous studies applied a direct accounting approach RQ3. What key issues of the EOQ model have not been studied? What
to translating environmental aspects of carbon emissions into economic future studies are needed to get a complete understanding of the low
parameters [10]. Battini et al. consider carbon emissions from storage in carbon EOQ model?
warehouses, garbage collection, and disposal, and transportation both
internal and external [11]. Soleymanfar et al. developed an economic The material collection step targeted any articles published in the Scopus
order quantity model with carbon emissions and partial backorder indexed journal in the range of 2010 until September 2020. Hence, the
for emerging shortages [12]. Wee & Daryanto consider the effect of search was done through the Scopus database (www.scopus.com). This
the defective rate, while Taleizadeh et al. took into consideration the arrangement is set to ensure the quality of the publication. Besides, the
discount on the EOQ model with carbon emissions [13,14]. The studies material must be written in English.
above take into account the cost of emissions based on the carbon tax
system. There is much more research on the low carbon EOQ model, The searches utilized the combination of the following keywords:
hence our literature review will systematically study the current trend
to gain more understanding and to identify potential future studies. ①(“EOQ” OR “Economic Order Quantity “ OR “Lot Size” OR “Lot Sizing”)
AND (“Carbon”)
A literature review study systematically identifies, evaluates, and
interprets the existing development of a study object or topic from ②(“EOQ” OR “Economic Order Quantity “ OR “Lot Size” OR “Lot Sizing”)
recorded documents [15]. The result can summarize certain patterns, AND (“Emission”)
emerging themes, and probably existing problems. Moreover, by studying
the content, a literature review can contribute to a new theory. Mayring The material collection is followed by some filtering procedure to
identified common steps in the literature review, i.e. material collection, eliminate any duplication and irrelevant articles. A brief check is done

Figure 1: Research methodology.

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

on the article’s title, keyword, and abstract. It is followed by a detailed carbon tax, or sustainability. It is found that most studies work under
check on the introduction, problem description, and conclusion to verify carbon tax regulation rather than carbon trade or carbon cap. Finally,
that the study develops a single echelon EOQ model considering carbon Table 1 lists the distribution of articles based on the journal where the
emission. Any articles that deal with multi-echelon EOQ or supply chain articles were published. The Journal of Cleaner Production is the leading
inventory model is expelled. At the end of this stage, relevant articles are channel for this topic, closely followed by International Journal of
ready for further analysis and evaluation. Production Economics, and then Sustainability. The number of articles
in other journals is quite similar.
Following some descriptive analysis, our study investigated the key
EOQ issues in the literature based on Janssen et al. in category selection
[8]. Some additional issues are used concerning the carbon emission
regulations being studied. Finally, the material evaluation identifies
further findings to answer the research questions.

4. FINDINGS AND DISCUSSION

Figure 2 shows the result of the material collection process. In the


beginning, the total article from the keyword search is 1060. The first
screening resulted in 776 articles. After reading all the titles, keywords,
and abstracts, 650 articles did not relevant to the targeted inventory
model and being expelled. In the end, there are 33 articles relevant to
the single echelon EOQ with the carbon emission consideration.

Figure 3 illustrates the distribution of articles based on the year of


publication. The first article on EOQ with carbon emission was published
in 2011 by Bonney & Jaber and growing especially in the last 4 years.
Figure 4 shows the distribution of articles based on the keyword. Most
articles identify the method EOQ and use the term carbon emission,

Figure 3: Distribution across the timeframe

Figure 4: Distribution based on keywords.

From those 33 articles, a detailed review of each article is performed.


A categorical analysis is performed based on 16 key topics on the
inventory model proposed by Janssen et al. [8].

a. Pricing and discount

Pricing decisions and offered discounts will affect customer willingness


to buy. From the 33 reviewed articles, only 1 article discussed a discount
that is Taleizadeh et al. [13]. The study considered an all-units quantity
discount schedule. An algorithm was constructed to solve the effect of
the discount schedule, leading to some iterations. The study confirmed
the importance of purchasing cost in the profit function, but the study
did not show the relationship between the discount rate (also means
selling price) and the emission level.

b. Shortage

A shortage occurs when the quantity demanded is greater than the


inventory level. In certain situations, the customer cancels the order
and chooses another supplier, but sometimes customers are willing to
wait for the next supply which is called backorder. Four articles (12%)
already consider shortage and backorder situations, those are Lee et
al. (2017), Sarkar et al. (2018), Lin (2018), and Taleizadeh et al. Lee et
al. (2017) considered shortages as a result of uncertainty in demand,
Figure 2: Screening results in material collection. delivery, and some other factors which cause lost sales [13,18-20]. The

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

Table 1: Distribution of Articles on the publication of journals. Lee et al. (2017), Lin (2018), Kazemi et al. (2018), and Taleizadeh et al.
(2017).
Articles
Journal Title h. Special product characteristics or customer request
(n=33)
Annals of Operations Research 2 This issue is considered only in Jin and Shi (2017).
Applied Mathematical Modelling 1
i. Issue policies (FIFO, LIFO, etc.)
Computers & Industrial Engineering 2
This topic is included in no article. In the reviewed articles, they had not
Engineering Letters 2
considered policy issues such as determining the optimum order of EOQ
European Journal of Operational Research 1 with carbon emission problems.
International Journal of Advanced Operations
1 j. Advances in technology
Management
International Journal of Production Economics 5 This issue is found only in Toptal et al (2013).
International Journal of Production Research 1
k. Distribution, routing, and transportation problem
International Journal of Systems Science: Operations
1
& Logistics This category discusses distribution, transportation, route selection,
and location problem activities in modeling the EOQ inventory system.
International Transactions in Operational Research 1
This issue is included in approximately 18% of papers, there are Bazorgi
Journal of Applied Science and Engineering 1 (2016), Lee et al. (2017), Jin and Shi (2017), Zhao et al. (2017), Yassine
(2018), and As’ad et al. (2020).
Journal of Cleaner Production 6
Journal of Industrial Engineering and Management 1 l. Product and process reliability
Journal of the Operational Research Society 1
Imperfect product is considered in approximately 12% of papers
Operations Research Letters 2 [19]. They are Soleymanfar et al. (2015), Kazemi et al (2018), Sarkar
et al (2018), Yassine (2018). Rework is a situation in which a defected
Sustainability 3
product needs a re-production process to make it ideal. This topic is
Systems Science and Control Engineering 1 included in approximately 9% of papers. They are Shu et al. (2017) and
Sarkar et al. (2018).
Technological Forecasting & Social Change 1
m. Two-and multi-warehouses

Two-and-multi-warehouse is a condition when the supply chain has two


or more warehouse facilities with a different function, and probably
there is transportation among the warehouses. So far, no articles
study identified that the increase in shortage cost has a minimal effect incorporate a multi-warehouse system. The models in the reviewed
on the order quantity and total cost. The other articles considered articles only discuss a single-warehouse.
partial backorder
n. Emissions sources
c. Multi-item inventory model [21-23]
In the emission source category, it was grouped into three matters. They
This issue is considered in Bozorgi (2016), Lamba and Singh (2018), were emission sources from transportation, production, and inventory.
and As’ad et al (2020). It means 91% of articles work for the single item
model. ①Transport emissions are considered in approximately 61% of articles
[18-20]. They are Boney and Jaber (2011), Bouchery et al. (2012), Tian
d. Inflation and time value of money et al. (2013), Gurtu et al. (2014), Bozorgi et al. (2014), He et al. (2015),
Soleymanfar et al. (2015), Bazorgi (2016), Purohit et al. (2016), Shu et al.
The reviewed articles did not consider the effect of inflation and the time (2017), Lee et al. (2017), Jin and Shi (2017), Liao and Deng (2018), Wang
value of money to determine the optimum order of EOQ with carbon and Ye (2018), Lamba and Singh (2018), Lin (2018), Yassine (2018),
emissions problems. Zhang et al. (2019), Lamba and Singh (2019), As’ad et al. (2020).

e. Payment mechanism: credit and advance payment ②Production emissions are included in approximately 24% of articles
[29-32]. They are Shu et al. (2017), He et al. (2015), Jin and shi (2017),
This issue is included in the article from Sarkar et al. which is considered Zhao et al. (2017), Zadjafar and Gholamian (2018), Tao and Xu (2019),
a multi-trade-credit-period [19]. The study found that an offer on a Phouratsamay and Cheng (2019), Wang and Choi (2020).
credit payment can reduce the retailer inventory as the customers may
order more. So far, no study consider advance payment together with ③Emissions from inventory holding are included in approximately 73%
the effect of carbon emission. of papers [18,19,33-37]. They are Boney and Jaber (2011), Tian et al.
(2013), Chen at al. (2013), Toptal et al. (2013), Bozorgi et al. (2014),
f. Investment, promotion, and budget/financial constraint [18,20,24-26] Hovelaque and Bironneau (2015), Soleymanfar et al. (2015), He et al.
(2015), Bazorgi (2016), Purohit et al. (2016), Lee et al. (2017), Sarkar et
An investment is an asset or item acquired to generate income or al. (2018), Lin (2018), Lamba and Singh (2018), Liao and Deng (2018),
appreciation. In an economic sense, an investment is the purchase Kazemi et al. (2018), Wang and Ye (2018), Lamba and Singh (2019), Tao
of goods that are not consumed today but are used in the future to and Xu (2019), Zhang et al. (2019), Phouratsamay and Cheng (2019),
create wealth. This topic is included in approximately 12% of papers. Wang and Choi (2020), As’ad et al. (2020), Taleizadeh et al. (2020).
The studies are conducted by Toptal et al (2013), Choi et al (2017) Lin
(2018), Cao et al. (2018), and Lee (2019). o. Emissions regulations

g. Outdating, waste, and shrinkage In the carbon emission legislation category, there are 3 categories found,
those are carbon cap, cap and trade, and carbon tax.
This topic is included in approximately 21% of papers [13,18,20,27]. The
studies are conducted by Soleymanfar et al. (2015), Shu et al. (2017), ①The carbon cap is considered in approximately 21% of papers [38-

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

Table 2: Summary of key issues in all articles.

Key Issue
No Journals n o p
a b c d e f g h i j k l m
1 2 3 1 2 3 1 2 3
Liao and Deng
1                       √   √   √ √ √ √    
(2018)
Wang and Ye
2                           √   √     √ √    
(2018)
Zadjafar and
3             √               √           √  
Gholamian (2018)
4 Tian et al. (2013)                           √   √         √  
Tao and Xu
5                             √ √ √ √ √ √    
(2019)
Kazemi et al.
6             √          √       √     √ √    
(2018)
Gurtu et al.
7                           √         √ √    
(2015)
Bouchery et al.
8                           √           √    
(2012)
Zhang et al.
9                           √   √   √     √  
(2019)
10 Lee (2019)           √                     √ √ √ √    
Toptal et al.
11           √       √           √ √ √ √ √    
(2013)
Taleizadeh et al.
12 √ √         √                 √   √ √    
(2020)
13 Shu et al. (2017)             √         √   √ √     √   √    
14 Cao et al. (2018)         √                        √   √    
15 He et al. (2014)                           √ √ √   √ √ √    
16 Lee et al. (2017)   √         √       √     √   √       √    
Sarkar et al.
17   √     √             √       √     √ √    
(2018)
18 Lin (2018)   √       √ √             √   √       √    
19 Chen at al. (2013)                               √ √   √ √    
Hovelaque and
20                               √   √ √ √    
Bironneau (2015)
21 Wu et al. (2017)               √     √     √ √       √    
Bozorgi et al.
22                           √   √       √    
(2014)
Soleymanfar et al.
23             √          √   √   √       √    
(2015)
Lamba and Singh
24     √                     √   √   √   √    
(2018)
25 Bazorgi (2016)     √               √     √   √       √    
Purohit et al.
26                           √   √   √     √  
(2013)
27 Choi et al. (2017)           √         √       √         √    
Boney and Jaber
28                           √   √       √    
(2011)
Lamba and Singh
29                           √   √ √   √   √
(2019)
Phouratsamay
30                             √ √   √     √
and Cheng (2019)
31 Yassine (2018)                     √  √   √         √ √    
Wang and Choi
32                             √ √     √   √  
(2020)
33 As’ad et al. (2020)     √               √     √   √ √         √

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

40]. They are Toptal et al (2013), Chen et al (2013), Liao and Deng search process targeted publication from 2010, the publication starts in
(2018), Tao and Xu (2019), Lee (2019), Lamba and Singh (2019), As’ad 2011 and gets increasing attention in the last four years. Further analysis
et al (2020). and evaluation are conducted based on several important issues in EOQ
models from Janssen et al. [8]. The EOQ models incorporated emissions
②Cap-and-trade is studied in approximately 33% of papers. They are energy usage during the production processes, in delivering product,
Toptal et al. (2013), He et al. (2015), Hovelaque and Bironneau (2015), and inventory holding. The most researcher considers a deterministic
Purohit et al. (2016), Shu et al. (2017), Cao et al. (2018), Lamba and demand and worked under carbon tax regulations.
Singh (2018), Phouratsamay and Cheng (2019), Tao and Xu (2019),
Zhang et al. (2019), Lee (2019). Several key issues/topics received little attention; hence, this study
shows potential further research on the low carbon EOQ model
③The carbon tax is considered in approximately 45% of papers [13,19]. considering the effect of pricing and discount, multi items, different
They are Toptal et al. (2013), Chen at al. (2013), Gurtu et al. (2014), He et payment methods, rework and remanufacturing products, and advance
al. (2015), Hovelaque and Bironneau (2015), Lamba and Singh (2019), technology. Further, no article considered the issue of inflation,
Yassine (2018), Sarkar et al. (2018), Liao and Deng (2018), Wang and Ye inventory issuing policy, and multiple-warehouse. Therefore, it is highly
(2018), Kazemi et al. (2018), Tao and Xu (2019), Lee (2019), Wang and recommended to incorporate this issue in future research. Besides, in
Choi (2020), Taleizadeh et al. (2020). the future, a literature review is also needed for EOQ models in multi-
echelon supply chain systems.
p. Demand type
ACKNOWLEDGMENT
In a deterministic model, demand is known and can be predicted with
certainty [13,18,19,29,41-45]. Thus, all parameters and variables are This study is supported and funded by Univesitas Atma Jaya Yogyakarta.
known or can be calculated with certainty. Deterministic is included This paper is an extended version from the paper presented in the
in approximately 76% of papers. They are Boney and Jaber (2011), International Conference of Science Management Art Research
Bouchery et al. (2012), Toptal et al. (2013), Chen at al. (2013), Bozorgi et Technology 2020.
al. (2014), Gurtu et al. (2014), Soleymanfar et al. (2015), He et al. (2015),
Hovelaque and Bironneau (2015), Bazorgi (2016), Jin and shi (2017), REFERENCES
Shu et al. (2017), Zhao et al. (2017), Lee et al. (2017), Liao and Deng
(2018), Wang and Ye (2018), Kazemi et al. (2018), Cao et al. (2018), [1] Türkay, M. Environmentally conscious supply chain management. In
Sarkar et al. (2018), Lin (2018), Lamba and Singh (2018), Yassine Papageorgiou, L.G. & Georgiadis, M.C (Eds.), Supply chain optimization,
(2018), Tao and Xu (2019), Lee (2019), and Taleizadeh et al. (2020). Weinheim: Wiley-Vch Verlag (2008).

The stochastic model emphasizes that there are uncertainties on [2] Hua, G., Cheng, T.C.E., Wang, S. Managing carbon footprints in
demand [45-47]. It may fluctuate and may not predictable. Stochastic inventory management. International Journal Production Economics
demand is included in approximately 15% of papers. They are Tian et al. (2011) 131: 178-185.
(2013), Purohit et al. (2016), Zadjafar and Gholamian (2018), Zhang et
al. (2019). Also, recently there is a dynamic model in Lamba and Singh [3] Bonney, M., Jaber, M.Y. Environmentally responsible inventory
(2019), Phouratsamay and Cheng (2019), As’ad et al (2020). models: Non-classical models for a non-classical era, International
Journal of Production Economics (2011) 133: 43-53.
The above results show that several key issues/topics received little
attention; hence, this study shows potential further research on the [4] Wahab, M.I.M., Mamun, S.M.H., Ongkunaruk, P. EOQ models for a
low carbon EOQ model considering the effect of pricing and discount, coordinated two-level international supply chain considering imperfect
multi items, different payment methods, rework and remanufacturing items and environmental impact. International Journal of Production
products, and advance technology. In some literature, green technology Economics (2011) 134: 151-158.
has been considered as a solution to reduce carbon emission. Therefore,
there is a need to incorporate this kind of technology in the EOQ model. [5] Su, L., Xiao, B., Suo, C., Yang Y. Models for operation management
Further, no article considered the issue of inflation, inventory issuing under carbon policies-A review, Chemical Engineering Transactions
policy, and multiple-warehouse. It is highly recommended to incorporate (2016) 51: 1159-1165.
this issue in future research. For example, a multi-warehouse system
may have transportation among the facilities which results in more [6] Das, C., Jharkharia, S. Low carbon supply chain: a state-of-the-art
emissions. literature review. Journal of Manufacturing Technology Management
(2018) 29(2): 398-428.
Further evaluation, study the relationship between carbon emission
costs and the total cost or profit. It can be summarized that as expected, [7] Chelly, A., Nouira, I., Frein, Y., Hadj-Alouane, A.B. On the consideration
Wang and Ye found that by incorporating carbon emissions cost in the of carbon emissions in modelling-based supply chain literature: the state
cost function, the total cost is getting bigger [39]. Gurtu et al found that of the art, relevant features and research gaps, International Journal of
the greater the carbon emissions, the greater the total cost [45]. From a Production Research (2019) 57(15-16): 4977-5004.
different perspective, Kazemi et al. found that the smaller the emission
cost the greater the profit [27]. Under a cap and trade regulation, Shu et [8] Janssen, L., Claus, T., Sauer, J. Literature review of deteriorating
al found that the higher the carbon quota, the lower the total cost [36]. inventory models by key topics from 2012 to 2015, International Journal
Production Economics (2016) 182: 86-112.
A clear insight into the effect of each issue on carbon emission reduction
is not yet gained. Most studies did not measure the total emissions or [9] Tsiliyannis, C.A. Sustainability by cyclic manufacturing: Assessment
expected emissions from the proposed model. Most of them only focus of resource preservation under uncertain growth and returns, Resources,
on cost reduction or profit increase. However, some information can Conservation and Recycling (2015) 103: 155-170.
be collected related to the results of the developed model in terms of
total cost and total emissions. For example, Chen et al. (2013) found [10] Benjaafar, S., Li, Y., Daskin, M. Carbon footprint and the management
that the model results in smaller cost but greater emissions. A similar of supply chains: Insights from simple models. IEEE Transactions on
result is identified by Purohit et al. (2015) and Tian et al. (2014). Wang Automation Science and Engineering (2013) 10(1): 99-116.
et al. (2020) found that the greater the profit, the smaller the carbon
emissions. [11] Battini, D., Persona, A., Sgarbossa, F. A sustainable EOQ model:
Theoretical formulation and applications. International Journal of
5. CONCLUSION AND FURTHER RESEARCH Production Economics (2014) 149: 145-153.

This research investigates the development of the single-echelon EOQ [12] Soleymanfar, V.R., Taleizadeh, A.A., Zia, N.P. A sustainable lot-sizing
model which considers carbon emissions in its function. This study model with partial backordering, International Journal of Advanced
identifies 33 journal articles from the Scopus database. Although the Operations Management (2015) 7(2): 157.

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.
Advances In Industrial Engineering And Management (AIEM) 9(2) (2020) 20-26

[13] Taleizadeh, A.A., Hazarkhan, B., Moon, I. Joint pricing and inventory Operation Research Letters (2012) 41: 172-179.
decisions with carbon emission considerations, partial backordering
and planned discount, Annals of Operations Research (2020): 1-11. [31] He, P., Zhang, W., Xu, X., Bian, Y. Production lot-sizing and carbon
emissions under cap-and-trade and carbon tax regulations, Journal of
[14] Wee, H.M., Daryanto, Y. Imperfect quality item inventory models Cleaner Production (2015) 103: 241–248.
considering carbon emissions. In Shah, N.H., & Mittal, M. (Eds.),
Optimization and inventory management. Singapore: Springer Nature [32] Hovelaque, V., Bironneau, L. The carbon-constrained EOQ model
(2020). with carbon emission dependent demand, International Journal
Production Economics (2014) 164: 285-291.
[15] Fink, A. Conducting research literature reviews: From the internet
to paper. Sage Publications (2014). [33] Liao, H., Deng, Q. A carbon constrained EOQ model with uncertain
demand for remanufactured products. Journal of Cleaner Production
[16] Mayring, P. Qualitative inhaltanalyse – Grundlagen und techniken (2018) 199: 334–347.
(Qualitative content analysis-Basics and techniques), 8th ed. Weinheim:
Beltz Verlag (2003). [34] Phouratsamay, S.L., Cheng, T.C. E. The single-item lot-sizing problem
with two production modes, inventory bounds, and periodic carbon
[17] Seuring, S., Müller, M. From a literature review to a conceptual emissions capacity, Operation Research Letters (2019) 47: 339-343.
framework for sustainable supply chain management. Journal of Cleaner
Production (2008) 16: 1699-1710. [35] Purohit, A.K., Shankar, R., Dey, P.K., Choudhary, A. Non-stationary
stochastic inventory lot-sizing with emission and service level
[18] Lee, S.K., Yoo, S.H., Cheong, T. Sustainable EOQ under lead-time constraints in a carbon cap-and-trade system, Journal of Cleaner
uncertainty and multi-modal transport, Sustainability (2017) 9: 476. Production (2016) 113: 654–661.

[19] Sarkar, B., Ahmed, W., Choi, S., Tayya, M. Sustainable inventory [36] Shu, T., Wu, Q., Chen, S., Wang, S., Lai, K.K., Yang, H. Manufacturers’/
management for environmental impact through partial backordering remanufacturers’ inventory control strategies with cap-and-trade
and multi-trade-credit-period, Sustainability (2018) 10: 4761. regulation, Journal of Cleaner Production (2017) 159: 11–25.

[20] Lin, H. Investing in transportation emission cost reduction on [37] Tao, Z., Xu, J. Carbon-regulated EOQ models with consumers’ low-
environmentally sustainable EOQ models with partial backordering, carbon awareness, Sustainability (2019) 11: 1004.
Journal of Applied Science and Engineering (2018) 21(3): 291-303.
[38] Tian, Z., Huo, L., Shen, G. Carbon footprint and order quantity in
[21] Bozorgi, A. Multi-product inventory model for cold items with logistics, Journal of Industrial Engineering and Management (2014)
cost and emission consideration, International Journal of Production 7(2): 475 – 490.
Economics (2016) 176: 123–142.
[39] Wang, S., Ye, B. A comparison between just-in-time and economic
[22] Lamba, K., Singh, S.P. Dynamic supplier selection and lot-sizing order quantity models with carbon emissions, Journal of Cleaner
problem considering carbon emissions in a big data environment, Production (2018) 187: 662–671.
Technological Forecasting & Social Change (2018) 144: 573-584.
[40] Wang, X., J., Choi, S., H. Stochastic Green Production Planning with
[23] As’ad, R., Hariga, M., Shamayleh, A. Sustainable dynamic lot sizing Lot Sizing, Engineering Letters (2020) 28 (2).
models for cold products under carbon cap policy, Computers &
Industrial Engineering (2020): 149. [41] Wu, P., Jin, Y., Shi, Y., Shyu, H. The impact of carbon emission costs
on manufacturers’ production and location decision, International
[24] Toptal, A., Özlü, H., Konur, D. Joint decisions on inventory Journal of Production Economics (2017) 193: 193-206.
replenishment and emission reduction investment under different
emission regulations, International Journal of Production Research [42] Yassine, N. A sustainable economic production model: effects of
(2013) 52(1): 243–269. quality and emissions tax from transportation, Annals of Operation
Research (2018).
[25] Zhao, Y.C., Choi, S.H., Wang, X.J., Qiao, A., Wang, S.Y. Production
and low-carbon investment analysis in make-to-stock supply chain, [43] Zadjafar, M.A., Gholamian, M.R. A sustainable inventory model by
Engineering Letters (2017) 25(1): 1-12. considering environmental ergonomics and environmental pollution,
case study: Pulp and paper mills, Journal of Cleaner Production (2018)
[26] Cao, K., Xu, B., He, Y., Xu, Q. Optimal carbon reduction level and 199: 444–458.
ordering quantity under financial constraints, International Transactions
in Operational Research (2018). [44] Zhang, R., Liu, Q., Wang, C. Inventory optimization of building
materials under the constraints of carbon emissions and stochastic
[27] Kazemi, N., Abdul-Rashid, S.H., Ghazilla, R.A.R., Shekarian, E., demand, Systems Science & Control Engineering (2019) 7(1): 146-157.
Zanoni, S. Economic order quantity models for items with imperfect
quality and emission considerations, International Journal of Systems [45] Gurtu, A., Jaber, M.Y., Searcy, C. Impact of fuel price and emissions
Science: Operation & Logistics (2018) 5(2): 99-115. on inventory policies, Applied Mathematical Modelling (2014) 39: 1202-
1216.
[28] Bouchery, Y., Jemal, Z., Ghaffarl, A., Dallery, Y. Including sustainability
criteria into inventory models, European Journal of Operation Research [46] Lee, J.Y. Investing in carbon emissions reduction in the EOQ model,
(2012) 222(2): 229-240. Journal of the Operational Research Society (2019).

[29] Bozorgi, A., Pazour, J., Nazzal, D. A new inventory model for cold [47] Lamba, K., Singh, S.P., Mishra, N. Integrated Decisions for Supplier
items that considers costs and emissions, International Journal of Selection and Lot-Sizing Considering Different Carbon Emission
Production Economics (2014) 155: 114–125. Regulations in Big Data Environtment, Computers & Industrial
Engineering (2019).
[30] Chen, X., Benjaafar, S., Elomri, A. The carbon-constrained EOQ,

Cite The Article: Bellachintya Reira Christata, Yosef Daryanto (2020). A Systematical Review on the Economic Order Quantity Model with Carbon Emission: 2010 - 2020.
Advances In Industrial Engineering And Management, 9(2): 20-26.

You might also like