Dual Channel Supply Chain Model with Delivery Lead Time on the Imperfect Production Process by Notice into Carbon Emission Capacity Regulation

Abstract

The development of the internet, adds flexibility of supply chain with an online channel for the product distribution. In this research, the dual channel supply chain model is used on the imperfect production process by notice into carbon capacity regulation and also delivery lead time. We construct the model to maximize the system profit of one manufacturer and one retailer by considering a carbon emissions capacity constrain from the government. Furthermore, we determine the optimal solution with Karush Kuhn Tucker condition. Based on sensitivity analysis maximal profit is obtained when probability of defective product, delivery lead time sensitivity, and carbon emissions are minimal.