A comparison between just-in-time and economic order quantity models with carbon emissions

Just in time (JIT) and Economic order quantity (EOQ) are two basic inventory modes in supply chains. Many researchers have conducted a lot of studies on JIT and EOQ. However, environmental issues are worth to be considered in these two modes. This paper studied the JIT and EOQ models with carbon emissions in a two-echelon supply chain with one manufacturer and n retailers. The manufacturer and retailers can adopt either (1) a JIT mode in which the manufacturer and all retailers have long-term coordination and have a uniform delivery, or (2) an EOQ mode in which every retailer could decide its own optimal lot size and their deliveries are separated. For a retailer, the question is how to make the most appropriate decisions on the inventory model. Firstly, the basic models of JIT and EOQ without carbon emissions are presented separately. Then, the extended models with carbon emissions are considered. The comparisons between two models are conducted and cost-indifference points are obtained. Numerical examples are given to illustrate the models. Finally, some managerial insights are given.