Impact of carbon emission policies on a production inventory model with stock and demand dependent production rate and preservation technology related deterioration

This article considers an EPQ model for deteriorating items assuming price dependent demand with different carbon emission regulations. Most of the researchers have taken production rate as constant or independent of demand. However, in this model production rate has been taken to be linear combination of on-hand inventory and demand. Also, we consider that the producing and holding items in storage can generate CO2 emission. Moreover, we all know preservation machinery be able to change the rate of deterioration of produced item. So it is important to study the preservation strategy under carbon policies. For minimising the total cost in a production cycle, inventory systems are developed in carbon tax and cap-trade policies. Also, we made a comparison between the optimum results of the proposed inventory articles without carbon constraint and with two carbon strategies. At last, numerical example has been calculated to conclude the theoretical property of these articles and the effects of different parameters have been illustrated through sensitivity analysis.