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Optimal Inventory Control Strategies for Deteriorating Items with a General Time-Varying Demand under Carbon Emission Regulations

Author

Listed:
  • Chunming Xu

    (Department of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, China)

  • Xiaojie Liu

    (Center for Management Innovation and Evaluation, Tianjin University of Commerce, Tianjin 300134, China)

  • Chenchen Wu

    (Department of Mathematics, College of Science, Tianjin University of Technology, Tianjin 300384, China)

  • Baiyun Yuan

    (Research Center of Energy Economy, School of Business Administration, Henan Polytechnic University, Jiaozuo 454000, China)

Abstract

Climate warming nowadays has caused people to increasingly enhance public awareness about carbon emissions from industries. In the storing industry, inventory management for deteriorating items is crucial in the business competition. To slow down the deterioration and ensure the quality of products, the items are usually stored in certain temperature-controlled environment. However, a lot of carbon emissions of the inventory system are caused by these warehousing activities. In a finite panning period, this paper studies a continuous review inventory system and proposes inventory models to analyze the impacts of carbon emissions on inventory system for deteriorating items with a general time-varying demand, in which shortages are allowed, and the customer demand during shortage period is partially backlogged till the next replenishment. Under carbon emission regulations, the existence and uniqueness of the optimal solution to each model is explored and comparisons of optimality among the proposed models are given. Numerical examples and robust analysis of the models are presented to illustrate the applicability in practice. Some management insights about inventory policies and emission reduction strategies are obtained.

Suggested Citation

  • Chunming Xu & Xiaojie Liu & Chenchen Wu & Baiyun Yuan, 2020. "Optimal Inventory Control Strategies for Deteriorating Items with a General Time-Varying Demand under Carbon Emission Regulations," Energies, MDPI, vol. 13(4), pages 1-20, February.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:4:p:999-:d:324223
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    References listed on IDEAS

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    2. Khan, Md. Al-Amin & Cárdenas-Barrón, Leopoldo Eduardo & Treviño-Garza, Gerardo & Céspedes-Mota, Armando & Loera-Hernández, Imelda de Jesús & Smith, Neale R., 2024. "Effects of variable prepayment installments on pricing and inventory decisions with power demand pattern and non-linear holding cost under carbon cap-and-price regulation," Operations Research Perspectives, Elsevier, vol. 12(C).
    3. Pourya Pourhejazy, 2020. "Destruction Decisions for Managing Excess Inventory in E-Commerce Logistics," Sustainability, MDPI, vol. 12(20), pages 1-12, October.
    4. Nabajyoti Bhattacharjee & Nabendu Sen, 2021. "An inventory model to study the effect of the probabilistic rate of carbon emission on the profit earned by a supplier," Operations Research and Decisions, Wroclaw University of Science and Technology, Faculty of Management, vol. 31(4), pages 5-33.

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