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Muhammad Faisal Ibrahim
Logistic Engineering, International University Semen Indonesia
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Industrial & Manufacturing Engineering

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Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration Muhammad Faisal Ibrahim; Maulin Masyito Putri
Jurnal Teknik Industri Vol. 20 No. 2 (2019): August
Publisher : Department Industrial Engineering, University of Muhammadiyah Malang

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (410.696 KB) | DOI: 10.22219/JTIUMM.Vol20.No2.128-139

Abstract

In practice, the policy of delaying payment periods is prevalent between players in a supply chain system. Generally, payments are made at the end of the permitted period. Supply chain management is one of the keys to corporate sustainability that the activities impact the environment.  This paper aims to develop an integrated green supply chain model with a permissible delay in payment consideration. In this research, the author develops a mathematical model to find the effect of delay in payment on emissions costs without ignoring the economic performance of a supply chain. The author develops four different scenario models. Furthermore, numerical experiments and sensitivity analysis tests were conducted. The study results show that delay in payment is integrated into the supply chain system, which has a positive impact on reducing supply chain emissions costs.
Co-Authors Maulin Masyito Putri