Sustainable Economic Order Quantity Model with Warehouse Costs and Capacity Limits
Dana Marsetiya Utama (a*), Dian Setiya Widodo (b), Shanty Kusuma Dewi (a)
a) Departement Industrial Engineering, University of Muhammadiyah Malang, Jl. Tlogomas No. 246, 65144 Malang, East Java, Indonesia
*dana[at]umm.ac.id
b) Vocation Faculty, University of 17 Agustus SurabayaJl. Semolowaru, Menur Pumpungan, Sukolilo, Surabaya 60118 East Java, Indonesia
Abstract
Recently, the problem of minimizing carbon emissions in manufacturing 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) warehouse costs are ignored, (2) warehouse emissions are avoided, and (3) warehouse costs are ignored. In this paper, we developed the SEOQ model with warehouse costs and capacity limits. There are two proposed SOQ models. Model 1 was the SEOQ model with warehouse costs and carbon emissions. At Model SEOQ 2, this model considered warehouse costs, carbon emissions, 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 warehouse costs and capacity limits.
Keywords: SEOQ; EOQ; carbon emissions; Inventory; capacity limits
Topic: Industry Engineering