Using JIT in a Green Supply Chain
Read this article on the Green Supply Chain. The authors analyzed the JIT approach to a transportation supply chain. As you read, think about what JIC materials, goods, and labor must be on hand in order to deliver JIT products?
Modeling and Assumptions
Model Symbols and Definitions
Table 1, Table 2 and Table 3 show and defines the symbols, parameters and decision variables of our model.
Table 1. Meaning of the symbols and settings in Numerical Example.
| Symbol | Meaning of the Symbols | Settings in Numerical Example |
|---|---|---|
| m | Manufacturer | 4 |
| s | Supplier | 1 |
| w | DC warehouse | 1 |
| r | Retailer | 1 |
| c | Packaging materials | |
| g | Merchants | |
| TM | Utilize the model of returning vehicle in the supply chain | 1: Recycling packaging materials 2: Transport goods to upstream suppliers |
| n | The planning period | 120 |
| a | Number of suppliers, a = 1, …a | 4 |
| b | The types of merchandise offered by the supplier, b = 1, …b | 5 |
| S | Start ordering time of merchants |
Table 2. Meaning of the Parameters.
| Parameter | Meaning of the Parameters: |
|---|---|
| PSM | Unit cost to the supplier for purchasing products from the manufacturer |
| PWS | Unit cost to the DC warehouse for purchasing products from the supplier |
| PRW | Unit cost to the retailer for purchasing products from the DC warehouse |
| PWM | Unit cost to the DC warehouse for purchasing products from the manufacturer |
| PWC | Unit cost to the DC warehouse for purchasing packaging materials |
| TMS | Unit cost from the manufacturer to the supplier |
| TSW | Unit cost from the supplier to the DC warehouse |
| TWR | Unit cost from the DC warehouse to the retailer |
| TRM | Unit cost from the retailer to the manufacturer |
| TMW | Unit cost to ship from the manufacturer to the DC warehouse |
| FG | Unit cost to the producing merchant |
| FC | Unit cost of producing packaging materials |
| IW | Unit cost of inventory for the DC warehouse |
| IM | Unit cost of inventory for the manufacturer |
| QG | The ordering quantity of goods |
| MIPG | The maximum inventory in the production of goods |
| MADG | The maximum annual demand for goods |
| OCG | Order cycle time |
| LTG | Lead time of purchasing goods |
| SSDG | Safety stock with demand fluctuations for goods |
| SSLTG | Safety stock with lead time fluctuations of purchasing goods |
| OHG | On hand inventory |
| OOG | On-order inventory |
| EMS | Unit carbon emissions as a result of transportation from the manufacturer to the supplier |
| ESW | Unit carbon emissions as a result of transportation from the supplier to the DC warehouse |
| EWR | Unit carbon emissions as a result of transportation from the DC warehouse to the retailer |
| ERM | Unit carbon emissions as a result of transportation from the DC warehouse to the retailer |
| EMW | Unit carbon emissions as a result of transportation from the manufacturer to the DC warehouse |
| ECP | Unit carbon emissions as a result of producing packaging materials at the manufacturing plant |
Table 3. Meaning of the Strategic-Decision Variable.
| Strategic-Decision Variable | Meaning of the Strategic-Decision Variable |
|---|---|
 |
To determine whether or not to ship product B from manufacturer A, on the nth day of the TM case. |