The Sustainable Economic Order Quantity Model: A Model Consider Transportation, Warehouse, Emission Carbon Costs, and Capacity Limits
Dana Marsetiya Utama1 , Dian Setiya Widodo2 , Muhammad Faisal Ibrahim3 , Khoirul Hidayat4 ,
Shanty Kusuma Dewi
1 Department Industrial Engineering, University of Muhammadiyah Malang, Jl. Tlogomas No.
246, 65144 Malang, East Java, Indonesia
2 Department of Manufacturing Technology, Vocational Faculty, University of 17 Agustus
1945 Surabaya Jl. Semolowaru 60118 East Java, Indonesia
3 Logistics Department, Universitas Internasional Semen Indonesia Jl. Veteran Kabupaten
Gresik, Jawa Timur 61122, Indonesia
4 Depertemen Agroindustrial, Trunojoyo University, Jl. Raya Telang, Kabupaten Bangkalan,
Jawa Timur 69162, Indonesia
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.
Keywords; Capacity; SEOQ; Transportation; Warehouse
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