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Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax

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  • Tapan Kumar Datta

Abstract

Carbon emissions play the central role in global warming. Manufacturing firms are significant contributors to carbon emissions. In many countries, regulatory authorities are taking actions to reduce emissions. Carbon taxation and cap-and-trade schemes are two mechanisms implemented in many countries. In the present paper, the author analyzes a production-inventory model under a carbon tax system. The production rate is assumed to be a decision variable and can be set at any level within machine limits. A proportion of items produced are defective, and this proportion depends on the production rate. Demand depends on the selling price. Unit price is a decreasing function of the production rate. Emissions can be reduced to some extent by capital investment on green technology, and this capital investment amount is a decision variable. Customers are categorized as retail customers and wholesale customers. A discount is offered to the wholesale customers on the regular selling price. The results are illustrated by a numerical example and a sensitivity analysis is performed.

Suggested Citation

  • Tapan Kumar Datta, 2017. "Effect of Green Technology Investment on a Production-Inventory System with Carbon Tax," Advances in Operations Research, Hindawi, vol. 2017, pages 1-12, December.
    • Handle: RePEc:hin:jnlaor:4834839
    DOI: 10.1155/2017/4834839
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    Cited by:

    1. Shun-Po Chiu & Jui-Jung Liao & Sung-Lien Kang & Hari Mohan Srivastava & Shy-Der Lin, 2024. "Sustainable Inventory Managements for Non-Instantaneous Deteriorating Items: Preservation Technology and Green Technology Approaches with Advanced Purchase Discounts and Joint Emission Regulations," Sustainability, MDPI, vol. 16(16), pages 1-41, August.
    2. Tapan Kumar Datta & Prasanta Nath & Karabi Dutta Choudhury, 2020. "A hybrid carbon policy inventory model with emission source-based green investments," OPSEARCH, Springer;Operational Research Society of India, vol. 57(1), pages 202-220, March.
    3. Jia-Liang Pan & Chui-Yu Chiu & Kun-Shan Wu & Chih-Te Yang & Yen-Wen Wang, 2021. "Optimal Pricing, Advertising, Production, Inventory and Investing Policies in a Multi-Stage Sustainable Supply Chain," Energies, MDPI, vol. 14(22), pages 1-20, November.
    4. Dharmendra Yadav & Umesh Chand & Ruchi Goel & Biswajit Sarkar, 2023. "Smart Production System with Random Imperfect Process, Partial Backordering, and Deterioration in an Inflationary Environment," Mathematics, MDPI, vol. 11(2), pages 1-20, January.
    5. R. Udayakumar & S. Priyan & Mandeep Mittal & Anuwat Jirawattanapanit & Grienggrai Rajchakit & Pramet Kaewmesri, 2022. "A Sustainable Production Scheduling with Backorders under Different Forms of Rework Process and Green Investment," Sustainability, MDPI, vol. 14(24), pages 1-38, December.
    6. Yosef Daryanto & Djoko Setyanto, 2023. "Production Inventory Optimization Considering Direct and Indirect Carbon Emissions under a Cap-and-Trade Regulation," Logistics, MDPI, vol. 7(1), pages 1-18, March.
    7. Lu Chen & Yueyue Fu & Yujia Liu & Cui Wang, 2023. "The Impact of Logistics Corporate Social Responsibility on Supply Chain Performance: Using Supply Chain Collaboration as an Intermediary Variable," Sustainability, MDPI, vol. 15(12), pages 1-14, June.
    8. Nita H. Shah & Ekta Patel & Kavita Rabari, 2022. "Investigation of carbon emissions due to COVID-19 vaccine inventory," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(1), pages 409-420, February.
    9. Rubayet Karim & Koichi Nakade, 2022. "A Literature Review on the Sustainable EPQ Model, Focusing on Carbon Emissions and Product Recycling," Logistics, MDPI, vol. 6(3), pages 1-16, August.
    10. Abu Hashan Md Mashud & Dipa Roy & Yosef Daryanto & Mohd Helmi Ali, 2020. "A Sustainable Inventory Model with Imperfect Products, Deterioration, and Controllable Emissions," Mathematics, MDPI, vol. 8(11), pages 1-21, November.
    11. Suchitra Pattnaik & Mitali Madhusmita Nayak & Stefano Abbate & Piera Centobelli, 2021. "Recent Trends in Sustainable Inventory Models: A Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-20, October.
    12. Chen, Zhixiang & Bidanda, Bopaya, 2019. "Sustainable manufacturing production-inventory decision of multiple factories with JIT logistics, component recovery and emission control," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 356-383.

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