Integrated Green Supply Chain Model to Reduce Carbon Emission with Permissible Delay-in-Payment Consideration

Muhammad Faisal Ibrahim, Maulin Masyito Putri

Program Studi Teknik Logistik

Universitas Internasional Semen Indonesia

Kompleks PT Semen Indonesia (Persero) Tbk Jl. Veteran, Gresik, Indonesia

muhammad.ibrahim@uisi.ac.id maulin.putri@uisi.ac.id

Abstract

In practice, the policy of giving a delay in payment period 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, and supply chain activities have a considerable impact on the environment. 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 the model into five different scenarios, then numerical experiment and sensitivity analyze test is performed. The results showed that delay in payment could integrate the players in the supply chain system and have a positive impact on reducing supply chain emission cost.

Keywords: Supply Chain Management, Green Supply Chain, Permissible Delay in Payment, Carbon Emission

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