Low Carbon Economic Production Quantity Model for Imperfect Quality Deteriorating Items

This paper presents an economic production quantity (EPQ) model for deteriorating items with a certain percentage of defective products due to an imperfect process. The defective products are sold to a secondary market at a discount price. Due to environmental concern and carbon tax regulation, the manufacturer incorporates the control of carbon emission cost into its decision model. Carbon emission cost is a function of electricity consumption during production and inventory storage; it is also dependent on the carbon tax rate. Since the production process results in work-in-process inventory and carbon emission, the study tries to optimize the throughput time. We also examine the effect of carbon tax regulation on the potential emission reduction from the developed deteriorating item model. A numerical example and sensitivity analysis have been provided, and the result confirms the influence of carbon tax regulation in reducing carbon emission

Application of Optimization in Production, Logistics, Inventory, Supply Chain Management and Block Chain

The evolution of industrial development since the 18th century is now experiencing the fourth industrial revolution. The effect of the development has propagated into almost every sector of the industry. From inventory to the circular economy, the effectiveness of technology has been fruitful for industry. The recent trends in research, with new ideas and methodologies, are included in this book. Several new ideas and business strategies are developed in the area of the supply chain management, logistics, optimization, and forecasting for the improvement of the economy of the society and the environment. The proposed technologies and ideas are either novel or help modify several other new ideas. Different real life problems with different dimensions are discussed in the book so that readers may connect with the recent issues in society and industry. The collection of the articles provides a glimpse into the new research trends in technology, business, and the environment

An Integrated Single Vendor-Buyer Stochastic Inventory Model with Partial Backordering under Imperfect Production and Carbon Emissions

This paper develops an integrated single vendor single buyer inventory model with imperfect quality and environmental impact. The demand during lead time is assumed to be stochastic and follows the normal distribution. An integrated system with controllable lead time and logarithmic investment to reduce the defective percentage is discussed in this model.100% error-free screening process is adopted by the buyer to separate defective and non-defective items. We assume that shortages are allowed and are partially backordered at the buyer’s end. Logistics management is the component of supply chain management that focusses on how and when to get raw materials, intermediate products and finished goods from their respective origins to their destinations.Thus, transportation play a major role in supply chain. As transportation increases, it affects the weather by the matter of carbon emission.The fixed and variable carbon emission cost for both vendor and buyer is considered. The prime motive is to determine the optimal policies regarding optimal order quantity, reorder point, lead time and the number of lots delivered in a production run by minimizing the expected total cost of the system. Finally, a numerical example is provided to demonstrate the model

Inventory Optimization of Deteriorating Items: A Comprehensive Review of Carbon-Control Policies and Their Impact on Shelf Life, Greening Effects, and Rework Policies

[EN] This study examines the deteriorating inventory management problem for items with short shelf life, considering alternative carbon control strategies from 2018 to 2023. These policies include carbon cap and trade, trade and credit policy, carbon-emission control, and others. The study takes into account critical elements such as shelf life, optimal policies, modelling approaches, greening effects, subsidies, and rework policies. The analysis started with a search for 'EOQ Model' in the Science Direct database, which generated 788 items. For a comprehensive evaluation, were restricted our resources to 329 scientific publications, including deterioration. Following that, it was limited to carbon emissions, obtaining 123 results. The papers referenced above cover a wide range of issues, including remanufacturing and rework, as well as carbon caps and trade-credit systems for data collection, yielding 45 and 32 research articles, respectively. The review prioritizes respected publications of peer-reviewed journals papers for reliable results were examined. A review of the literature suggested that future research should concentrate on stochastic modelling. The emphasis has been placed on identifying future study gaps that will aid in the development of most relevant models. The current work will serve as a guideline for selecting the suitable mathematical technique(s) and methodology(s) in various situations involving deteriorating items. The current analysis examined 42 research papers on deteriorating inventory modelling accessible in the literature to characterize its current state and indicate probable future directions. Future research needs have also been identified. This comprehensive study is firmly believed to fill a knowledge gap on deteriorating inventory and support in the formulation of appropriate methods for the creation of a successful and effective inventory control system for deteriorating products.Verma, P.; Mishra, VK. (2023). Inventory Optimization of Deteriorating Items: A Comprehensive Review of Carbon-Control Policies and Their Impact on Shelf Life, Greening Effects, and Rework Policies. WPOM-Working Papers on Operations Management. 15(1):39-56. https://doi.org/10.4995/wpom.20268395615

Central Asia: Background Paper on Climate Change

human development, climate change

Two-stage assembly system with imperfect items for a coordinated two-level integrated supply chain under carbon emission constraints

This paper may provide an alternative to the problem of a two-stage assembly system with imperfect processes in a single manufacturer-retailer and two-level integrated supply chain. A mathematical model is developed based on the following scenarios: (a) the manufacturer and the retailer are in different countries where the exchange rate is uncertain; (b) the fixed and variable carbon emission costs are incorporated into current environmental issues; (c) shortage is allowed, and the unsatisfied demand is completely backlogged. In the light of these concerns, our model is to determine the production run time, the shortage time period and defective rate of manual stage. The optimal solutions are computed by our proposed algorithm. Finally, a numerical example and sensitivity analysis are carried out to illustrate the model

Over-Allocation or Abatement? A Preliminary Analysis of the Eu Ets Based on the 2005 Emissions Data

This paper provides an initial analysis of the EU ETS based on the installation-level data for verified emissions and allowance allocations in the first trading year. Those data, released on May 15, 2006, and subsequent updates revealed that CO2 emissions were about 4% lower than the allocated allowances. The main objective of the paper is to shed light on the extent to which over-allocation and abatement have taken place in 2005. We propose a measure by which over-allocation can be judged and provide estimates of abatement based on emissions data and indicators of economic activity as well as trends in energy and carbon intensity. Finally, we discuss the insights and implications that emerge from this tentative assessment.Climate Change, Emission Trading, Allocation, Environmental Effects

Pollution Abatement in the Netherlands: A Dynamic Applied General Equilibrium Assessment

This paper deals with an assessment of the economic costs of environmental policies in the Netherlands, using a dynamic Applied General Equilibrium model with bottom-up information on abatement techniques. Empirical abatement cost curves are used to determine substitution possibilities between pollution and abatement and the characteristics of abatement goods. The results show that an absolute decoupling of economy and environment is possible. Smog formation is the most costly environmental theme, due to the absence of technical abatement options. For all environmental themes, the least-cost way to reduce emissions is via a combination of technical abatement measures and substantial economic restructuring.Applied general equilibrium, Pollution abatement, Dynamics, Environmental policy, Netherlands