The Sustainable Economic Order Quantity Model: A Model Consider Transportation, Warehouse, Emission Carbon Costs, and Capacity Limits

Abstract

Abstract Recently, the problem of minimizing emission carbon in the industry has become a focus of much research. One of the efforts that were successfully carried out was managing the sustainable economics order quantity (SEOQ). However, several SEOQ had assumption such as (1) Transportation and warehouse costs are ignored, (2) Transportation emissions are avoided, and (3) warehouse Capacity Limit are ignored. In this paper, we developed the SEOQ model with warehouse costs and capacity limits. There are two proposed SEOQ models. Model 1 was the SEOQ model with Transportation and warehouse costs also emission carbon. At Model SEOQ 2, this model considered Transportation and warehouse costs, emission carbon, and capacity. We also proposed procedures to minimize total inventory costs. Finally, a numerical experiment was conducted to test the model. Based on numerical experiments, the proposed model useful to solve SEOQ problems with Transportation and warehouse also costs capacity limits.