Supply chain management priorities have shifted to focus on resilience, agility, and sustainability while reducing greenhouse gas emissions. The transportation sector plays a significant role in CO2 emissions, so environmental impact must be considered in decision-making. However, practitioners face challenges in adopting stochastic models, and a possible solution involves redesigning algorithms and implementing them into simulations. The study assessed the environmental impact of decisions made under uncertainty in production lead time by simulating reality checks. The simulation showed that utilizing unplanned air transportation can increase total costs by on average 1.83 times and can result in as much as 11 times more carbon dioxide emissions. Implementing a lead time buffer of one week in production planning can reduce the number of units shipped by air due to unexpected disruptions. Increasing production utilization and minimum stock quantity can decrease CO2 emissions up to a certain point. However, inventory holding cost was not attributed to a significant impact on CO2 emissions in this study. The study is limited as it is a simplified model that does not reflect the complexity of real-world production processes. For example, production delays do not always require air transport, and energy sources need to be considered for accurate carbon emission calculations. Future studies should also consider indirect emissions for a more realistic analysis.
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Supply chain management priorities have shifted to focus on resilience, agility, and sustainability while reducing greenhouse gas emissions. The transportation sector plays a significant role in CO2 emissions, so environmental impact must be considered in decision-making. However, practitioners face challenges in adopting stochastic models, and a possible solution involves redesigning algorithms and implementing them into simulations. The study assessed the environmental impact of decisions made...
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