Analysis of carbon emission regulations in supply chains with volatile demand.
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2014-07-01
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Abstract:This study analyzes an inventory control problem of a company in stochastic demand environment under carbon emissions
regulations. In particular, a continuous review inventory model with multiple suppliers is investigated under carbon taxing and carbon
trading regulations. We analyze and compare the optimal (Q;R) policies with order splitting under two ordering policies: sequential
ordering and sequential delivery. The effects of regulation parameters and demand variability on costs and carbon emissions are
analyzed under each policy. Furthermore, single sourcing, sequential ordering, and sequential delivery will be compared in terms of
costs and carbon emissions.
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