Carbon-constrained perishable inventory management with freshness-dependent demand

G. W. Hua, T. C.E. Cheng, Y. Zhang, J. L. Zhang, S. Y. Wang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

15 Citations (Scopus)

Abstract

We consider perishable inventory control with freshness-dependent demand under carbon emissions constraints. We propose two deteriorating inventory models with carbon emissions tax and the cap-and-trade mechanism, in which the demand is freshness dependent, carbon emissions come from inventory holding, shipping, and item deteriorating, and the objective is to maximize the profit per unit time. We characterize the existence and uniqueness of the solutions for the models. We analyse the impacts of carbon emissions tax, carbon emissions quota, and carbon price on inventory decisions, carbon emissions, and profit. We conduct simulation to generate managerial insights from our analytical results.
Original languageEnglish
Pages (from-to)542-552
Number of pages11
JournalInternational Journal of Simulation Modelling
Volume15
Issue number3
DOIs
Publication statusPublished - 1 Jan 2016

Keywords

  • Cap-and-trade
  • Carbon emissions tax
  • Deteriorating inventory
  • Freshness-dependent demand
  • Perishable items

ASJC Scopus subject areas

  • Modelling and Simulation
  • Computer Science Applications

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