Low-Carbon Supply Chain Model under a Vendor-Managed Inventory Partnership and Carbon Cap-and-Trade Policy

Nowadays, companies are collaborating and forming supply chain partnerships under a certain scheme, such as vendor-managed inventory scheme. The collaboration increases the chain’s visibility, which leads to cost efficiency. It may also contribute enhancing green performance. This paper presents model guide managers in making optimal decisions considering logistics carbon emissions. A vendor supplies products inventory; hence, it is responsible for activities. effect of product deterioration quality problems considered, performs 100% inspection. price imposed on total emissions from production activities cap-and-trade regulation. result regarding delivery quantity well frequencies that minimize costs. reduction was studied.