Managing carbon footprints in inventory management
There is a broad consensus that mankind must reduce carbon emissions to mitigate global warming. It is generally accepted that carbon emission trading is one of the most effective market-based mechanisms to curb the amount of carbon emissions. This paper investigates how firms manage carbon footprints in inventory management under the carbon emission trading mechanism. We derive the optimal order quantity, and analytically and numerically examine the impacts of carbon trade, carbon price, and carbon cap on order decisions, carbon emissions, and total cost. We make interesting observations from the numerical examples and provide managerial insights from the analytical results.
Year of publication: |
2011
|
---|---|
Authors: | Hua, Guowei ; Cheng, T.C.E. ; Wang, Shouyang |
Published in: |
International Journal of Production Economics. - Elsevier, ISSN 0925-5273. - Vol. 132.2011, 2, p. 178-185
|
Publisher: |
Elsevier |
Keywords: | Inventory Carbon footprints Carbon emission trading Order quantity |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Hua, Guowei, (2011)
-
The maximum capture per unit cost location problem
Hua, Guowei, (2011)
-
Optimal order lot sizing and pricing with free shipping
Hua, Guowei, (2012)
- More ...