An inventory model of a deteriorating product considering carbon emissions

Chunhai Yu, Zebin Qu, Thomas W Archibald, Zhaoning Luan

Research output: Contribution to journalArticlepeer-review

Abstract

This paper studies an inventory optimization problem involving perishable products under carbon policy. It considers that the market demand for perishable products is deterministic and it is related to selling price and stock level and that the ordering and storing of perishable products can create carbon emissions. Additionally, preservation technology can change perishable item’s deterioration rate is also taken into account. For maximizing the retailer’s profit in the finite planning period, inventory models under a carbon tax policy and under a carbon cap-and-trade policy are developed. Firstly properties of the optimal solutions of two inventory models are analysed. Next algorithms are designed to solve the two inventory models and the optimal solutions of the inventory models without carbon constraint, under the two carbon policies are compared. Finally, the theoretical properties of the models are demonstrated by numerical examples, sensitivity analysis of the main model parameters is carried out, and the influence of the parameters on the retailer’s inventory policy is discussed.
Original languageEnglish
Article number106694
JournalComputers and Industrial Engineering
Volume148
Early online date28 Jul 2020
DOIs
Publication statusE-pub ahead of print - 28 Jul 2020

Keywords

  • carbon tax policy
  • carbon cap-and-trade policy
  • preservation technology
  • perishable products
  • inventory model

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