Inventory Routing Problem (IRP) is a study done under Supply Chain Modelling (SCM). The classic formulation of IRP was then extended to resolve multi-period inventory routing problem (MIRP). It is a study that helps in formulating the best outcome of maximizing the profits generated and minimizing the costs of the operation. MIRP plays a prominent role in a range of application areas not only for educational research but also in the industrial sector. In this research, the MIRP studied is extended to include carbon emission consideration which will aid in solving the concerning rise in carbon produce throughout the years by the industry. The proposed model of MIRP considers the use of carbon cap-and-trade policy for carbon emission and is solved by using Hybrid Genetic Algorithm (HGA). The HGA algorithm used is made up of two algorithms, that is the Genetic Algorithm (GA) and Double Sweep Algorithm (DSW). This study considered the use of different group sizes of data with three categories that is small, medium and large data set. The analysis done covered the formulation of the total system’s cost of three groups of different data sizes. Since the analysis showed a valid result on the carbon cap-and-trade policy, a parameter sensitivity analysis was done on a set of real-world problems. The data was analyzed by using Microsoft Visual Studio 2019 and sorted by using Excel. Based on the analysis, the total cost increases when there is an increase in unit price of carbon and carbon cap set in the study. In conclusion, applying the carbon emission consideration does help in producing an environmentally friendly routing strategy with a better total objective formed.

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Hybrid Genetic Algorithm for Multi-period Inventory Routing Problem with Carbon Cap-and-Trade Policy

  • Nur Arina Bazilah Aziz,
  • Siti Nur Alia Afiqa Mohd Hadzir,
  • Muhammad Syafiq Rashid

摘要

Inventory Routing Problem (IRP) is a study done under Supply Chain Modelling (SCM). The classic formulation of IRP was then extended to resolve multi-period inventory routing problem (MIRP). It is a study that helps in formulating the best outcome of maximizing the profits generated and minimizing the costs of the operation. MIRP plays a prominent role in a range of application areas not only for educational research but also in the industrial sector. In this research, the MIRP studied is extended to include carbon emission consideration which will aid in solving the concerning rise in carbon produce throughout the years by the industry. The proposed model of MIRP considers the use of carbon cap-and-trade policy for carbon emission and is solved by using Hybrid Genetic Algorithm (HGA). The HGA algorithm used is made up of two algorithms, that is the Genetic Algorithm (GA) and Double Sweep Algorithm (DSW). This study considered the use of different group sizes of data with three categories that is small, medium and large data set. The analysis done covered the formulation of the total system’s cost of three groups of different data sizes. Since the analysis showed a valid result on the carbon cap-and-trade policy, a parameter sensitivity analysis was done on a set of real-world problems. The data was analyzed by using Microsoft Visual Studio 2019 and sorted by using Excel. Based on the analysis, the total cost increases when there is an increase in unit price of carbon and carbon cap set in the study. In conclusion, applying the carbon emission consideration does help in producing an environmentally friendly routing strategy with a better total objective formed.