Inventory management and transportation are the main activities in supply chains that generate carbon emissions in many industries. The industries will produce carbon emission significantly to keep maintaining their item well, especially deteriorating items. Recently, many researchers focus on reducing carbon emissions regarding carbon policy that set in the industries. This study considers supply chain coordination between single supplier and buyer, mixing with Vendor Managed Inventory system to manage inventory decision considering carbon emission and imperfect quality deteriorating items. The transportation scenario of supplier delivering the product to the buyer using two different cases, the first is when the supplier transports the products by single-setup-single-delivery policy, and the second is single-setup-multiple-delivery policy. Carbon emission cost is also calculated under carbon tax policy. The aim of this study is to minimize the total cost and reduce the total carbon emission considering the optimum delivery quantity and the number of deliveries per production cycle. Numerical example and the sensitivity analysis will be provided to show the solution of the proposed model.

@inproceedings{oscm-2019-536,
  title={Supply Chain Coordination under Vendor Managed Inventory System Considering Carbon Emission for Imperfect Quality Deteriorating Items},
  year={2019},
  author={Agustina Viani Trinanda Adi Nugroho and Hui Ming Wee},
  booktitle={Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019},
  doi={10.31387/oscm410214}
}

Agustina Viani Trinanda Adi Nugroho, Hui Ming Wee (2019). Supply Chain Coordination under Vendor Managed Inventory System Considering Carbon Emission for Imperfect Quality Deteriorating Items. In Proceedings of the 9th International Conference on Operations and Supply Chain Management, Vietnam, 2019. https://doi.org/10.31387/oscm410214